Case Study: Savannah Organics In the fast-developing economy of Botswana, a young entrepreneur, Thato Dlamini, decided to venture into organic agriculture. Inspired by the growing global demand for organic produce, Thato founded Savannah Organics in 2019, aiming to supply pesticide-free fruits and vegetables to urban markets. The company started with a modest 5-hectare plot on the outskirts of Gaborone. Despite its potential, Savannah Organics faced significant challenges linked to the entrepreneurial environment. Access to funding was one of the primary obstacles. Thato struggled to secure a bank loan, as the financial institutions required collateral far beyond her means. Her attempt to raise funds through grants was equally difficult, with bureaucracy and lack of clear guidance delaying her applications. Another challenge was the lack of supportive infrastructure. Irrigation systems and farm equipment were either unavailable locally or prohibitively expensive, forcing Thato to import machinery at a higher cost. Additionally, rural roads leading to her farm were poorly maintained, delaying deliveries and increasing transportation expenses. Regulatory policies also posed a challenge. Obtaining organic certification in Botswana required significant time and financial investment, as the country lacked streamlined processes for organic accreditation. Thato had to work with international bodies, adding complexity and expense to her operations. Despite these challenges, Thato capitalized on the strengths of the entrepreneurial environment. She formed partnerships with local agricultural cooperatives and NGOs, enabling her to access shared resources, knowledge, and training programs. She also collaborated with the government to participate in a public-private initiative promoting sustainable farming, which provided her with a modest grant. Thato leveraged digital platforms to connect directly with customers, eliminating intermediaries and offering competitive pricing. Her ability to innovate and adapt proved critical in sustaining her business, even during economic disruptions caused by the COVID-19 pandemic. By the end of 2023, Savannah Organics had expanded its operations to 15 hectares, supplying produce to supermarkets across the country and partnering with health-focused restaurants. Thato's journey highlights both the barriers and opportunities within Botswana's entrepreneurial environment. Her story demonstrates the importance of resilience, strategic partnerships, and leveraging available resources to overcome systemic challenges. Case study Questions: a. What are the key challenges faced by Thato in navigating Botswana's entrepreneurial environment, and how did she address them? (6 marks) b. Evaluate the role of government and institutional support in fostering entrepreneurship in this (4 marks) case. c. Discuss how partnerships and collaboration contributed to Savannah Organics' growth and sustainability. (4 marks)

Case Study: Savannah Organics In the fast-developing economy of Botswana, a young entrepreneur, Thato Dlamini, decided to venture into organic agriculture. Inspired by the growing global demand for organic produce, Thato founded Savannah Organics in 2019, aiming to supply pesticide-free fruits and vegetables to urban markets. The company started with a modest 5-hectare plot on the outskirts of Gaborone. Despite its potential, Savannah Organics faced significant challenges linked to the entrepreneurial environment. Access to funding was one of the primary obstacles. Thato struggled to secure a bank loan, as the financial institutions required collateral far beyond her means. Her attempt to raise funds through grants was equally difficult, with bureaucracy and lack of clear guidance delaying her applications. Another challenge was the lack of supportive infrastructure. Irrigation systems and farm equipment were either unavailable locally or prohibitively expensive, forcing Thato to import machinery at a higher cost. Additionally, rural roads leading to her farm were poorly maintained, delaying deliveries and increasing transportation expenses. Regulatory policies also posed a challenge. Obtaining organic certification in Botswana required significant time and financial investment, as the country lacked streamlined processes for organic accreditation. Thato had to work with international bodies, adding complexity and expense to her operations. Despite these challenges, Thato capitalized on the strengths of the entrepreneurial environment. She formed partnerships with local agricultural cooperatives and NGOs, enabling her to access shared resources, knowledge, and training programs. She also collaborated with the government to participate in a public-private initiative promoting sustainable farming, which provided her with a modest grant. Thato leveraged digital platforms to connect directly with customers, eliminating intermediaries and offering competitive pricing. Her ability to innovate and adapt proved critical in sustaining her business, even during economic disruptions caused by the COVID-19 pandemic. By the end of 2023, Savannah Organics had expanded its operations to 15 hectares, supplying produce to supermarkets across the country and partnering with health-focused restaurants. Thato's journey highlights both the barriers and opportunities within Botswana's entrepreneurial environment. Her story demonstrates the importance of resilience, strategic partnerships, and leveraging available resources to overcome systemic challenges. Case study Questions: a. What are the key challenges faced by Thato in navigating Botswana's entrepreneurial environment, and how did she address them? (6 marks) b. Evaluate the role of government and institutional support in fostering entrepreneurship in this (4 marks) case. c. Discuss how partnerships and collaboration contributed to Savannah Organics' growth and sustainability. (4 marks)

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter6: Managing Start-Ups And New Ventures

Section: Chapter Questions

Problem 9DQ

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