Investor relations within the entrepreneurial landscape is a nuanced journey that requires a deep understanding of the ecosystem’s context and maturity. From embryonic to mature stages, including low-mid, half-mature, mid-high, and mature, the dynamics vary significantly.
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Investors typically seek investment-ready products or ideas, while entrepreneurs are on the lookout for genuine investors. However, the challenge arises from the lack of clear definitions for these fundamental concepts.
A genuine investor is one who acknowledges the inherent risk of losing invested capital, distinguishing themselves from amateurs. The commitment to this risk sets them apart in the entrepreneurial landscape.
Entrepreneurship out of Need or Opportunity:
Many entrepreneurs, unfortunately, enter the realm of entrepreneurship out of necessity rather than seizing an opportunity. This often results in a pursuit of quick funds from the first available source or amateur investor.
The real challenge arises when these amateur investors exert undue pressure on entrepreneurs. In their quest for fast funds, entrepreneurs compromise their sleep and creative abilities, creating a dynamic where they feel indebted from day one. This impacts their capacity to imagine, innovate, or enhance creative skills, now primarily focused on the concern of repaying the funds.
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This dynamic has a detrimental impact on projects, stifling imagination and hindering the enhancement of mechanisms that could improve the project, product, or system and increase its overall value.
Understanding the maturity level of the ecosystem is crucial, as it determines the maturity levels of both investors and entrepreneurs. Investors need training to differentiate between cost and value, and pitching to entrepreneurs may be necessary to assess their qualifications.
It is imperative to clarify that possessing money for investment doesn’t automatically qualify someone as an investor, just as having an idea doesn’t necessarily make someone an entrepreneur.
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Shorth & Sweet:
Entrepreneurs should embark on the entrepreneurial journey based on opportunity, not necessity. Investors should be prepared to earn or learn. Both parties need a mechanism to qualify each other, preventing unrealistic expectations, mitigating risks, and managing uncertainties.
About the Author:
Oscar A. NCHASO BEKARI, polyglot, author, futurist and MBA holder, is the Founder and Executive Director of XAPIENS Human Capital Management and Dreams Hub Tech, Entrepreneurship, Research and Innovation Center (AfriLabs Member). An artist, and Speaker. He explores diverse topics, emphasizing the impact of actions on future generations. Oscar also leads the Crystal Eggs initiative, providing free IT education for underprivileged children and fostering a cultural movement focused on values.
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