Our previous survey on partnerships give a picture of how businesses are gradually evolving in Nigeria. 138 people took part in the survey with 113 males and 26 females. The greatest number came in from those in the age group of 30 – 35 years and the lowest 50 – 60 years.
In this survey, we asked our participants if they would warm up to the idea of partnerships in business. 118 people said yes and 20 said no.
It is interesting to note that even though 62% said they have had bad experiences with partnerships in the past, over 85% still confirm that they warm up to the idea of partnerships. Other results in relation to choosing a partner suggest that this might mean that we attribute failure of partnerships to the character of people versus the business idea. Since 3/4 of our poll group are between the ages 20-35 and have been in business for only 0-5 years this suggests that most small business owners are continually open to collaborations even though they get increasingly cautious.
The following results showed the percentage of key determining factors when choosing a business partner; 45% said values, 16% Business Development, Finance 14%, Creativity 12%, Management 5%, Marketing 2%, Logistics 1%, Technology 1%, Other 1%, Connection 1%, Friendship 1%.
76% of the participants said they would discuss long-term goals with their partner before commencing any sort of partnership, compared to the 24% who would discuss long-term goals after commencing partnership.
In this survey, we see 61% of participants saying the deal breaker for closing in on a partner would be lack of trustworthiness, 15% said lack of vision, 8% said incompetent execution, 7% for poor relationship skills, 5% for pride, 3% for lack of knowledge and 1% for family.
When asked which they would rather go for, 57% said investment, 30% would go for partnership, 12% for acquisition and 1% said none. This might suggest that more people consider that business financing is what they need rather than having another person/persons on board.
How much equity would they give to investors and do they understand that this in itself is a form of partnership?
When it comes to partnership, there is always more than two or more people involved. 68% said they would be comfortable partnering with two people, 17% said three works for them, 13% stuck with one, 11% said 4 is a comfortable number for them while 9% said five and just 1% said 10.
The feedback on this question was a bit surprising to us. Until a few hours before compiling results, the role of COO was the most preferred option. How is it that people who are over 75% cautious of going into partnerships are not willing to jump at the opportunity of taking the role that gives the company direction.
Among the 139 participants, 97% (135) said they would have clearly laid out roles before starting a partnership compared to the 3% (4). Among the following roles, 35% said they would most likely be comfortable taking CEO (Chief Executive Officer), 33% said COO (Chief Operations Officer), 13% said Board Member, 12% said Team Member, 5% said CTO (Chief Technical Officer), 1% said CMO (Chief Marketing Officer) and the remaining 1% said CFO (Chief Financial Officer).
The question we might also need to answer is, are more people running away from the hectic responsibility of steering a small business in todays economy? The above shows that a total of 45% are more concerned with the day to day operations of the business.
When asked what they would consider as top most for success in partnerships, 50% said trust, 19% said they consider vision as the top most, another 16% said passion, 8% said values, 4% said respect, 2% said relationship and 1% said knowledge.
If a partner acts unethical, how would you handle it? 64% of the participants said they would simply speak to their partner, 20% said they would go legal, 7% said they would seek the counsel of a mutual friend, 7% said they would work towards replacing them, and 1% said they would walk away. None of our participants considered reciprocating with an unethical act.
37% of the participants would approach a partnership to be innovative. While 26% said the focus was to make more money, 23% said their end goal would be to do more, 9% said save the world and 5% said conserve their energy.
In this survey, we had 47% who have been in business for 1 – 5 years, 37% 0 – 1 year, 105 5 – 10 years and 6% have been in business 10 years and above.