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CAPE TOWN - Businesses fail for a number of reasons. The failure of a majority of businesses is attributed to simple reasons that can be avoided. 

CEO of the Institute of Business Advisors of Southern Africa (IBASA), Joseph Munzhedzi Tshiwilowilo tells of the all too common reasons why businesses fail to grow. 


Management is considered crucial in the success of a business. 

“Knowledge Management in every business is critical that is very important, to an extent that if you do not have well experienced and skilled Management You do not have a Business”, says Tshiwilowilo. 

Management is the sustainer of any business. Without a management team in place, the business does not have the capacity to grow. A management team may comprise of a business advisor, mentor, consultant, counsellors and coaches, says Tshiwilowilo. 

Once a management team has been established, the team then requires to be upskilled. 


“Training and development  is imperative, it should not be negotiated”, adds Tshiwilowilo. 

It is important to note that business trends are not static, “but a moving target”. Therefore, a business team should always be prepared to deal with a dynamic environment.

“Ecosystem is elusive. You therefore need skill and agility”. 

READ: Why do successful businesses backfire?


A business cannot function without a leader. Although certain employees are hostile toward their employers, someone has to lay down the operational rules. 

Tshiwilowilo says that to be liked by employees for wrong reasons should be the least worry for a credible business person. 

He adds that assertiveness is one of the good attributes of a good business leader. 

Do or die tips 

Majority of businesses fail when they fail to plan, says Tshiwilowilo. 

“A good plan is a living system in the organisation”, he adds. 

A plan applies to all spheres of a business. This includes the finance, economic situation as well as the staff. 

It is crucial to note that planning is not an event but rather a process. 

Tshiwilowilo reiterates that planning is ultimately one of the do or die survival tips for any business. 


IBSA’s membership comprise of approximately 1 200 members which each focus on 5 businesses per month. 

The independent non-statutory body provides a service that is needed by Government Agencies, Banks and Enterprise Development Foundations. 

IBASA is currently Grading and accrediting 154 Small Enterprise Development Agency’s (Seda’s) who are business advisors. 

According to Tshiwilowilo, research has proven that entities that get support have an 80% chance of survival. 

“Our members are found in all levels of businesses: SMME’s, SME’s and big enterprises: Our bias is on SMME’s and SME’s. (SMME  include informal – here we looking at an annual turnover of R50K) SME’s we looking at annual turnover of plus minus R100 Million”, concludes Tshiwilowilo. 

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