The Importance of Leadership Skills in Business Success

When I started?Lapid Leaders Africa , my goal was to equip young people with the skills they needed to get jobs and succeed in the workforce. But I soon realized that the economies in Africa were not creating enough jobs to meet the demand. For example, in Kenya, we would need a sustained growth rate of 7% for several years to create enough employment opportunities. This has not been the case, and as a result, youth unemployment is on the rise.

In addition, I found a generation of young people who were more driven to build businesses. They were inspired by the stories of Mark Zuckerberg, Elon Musk, and Richard Branson, and the "Be Your Own Boss " shows and other similar stories had cemented their passion for entrepreneurship. The hustling narrative had become a chosen truth, and the lack of jobs had sealed the conversation.

Recent studies have shown that 70% of young people are not actively seeking employment after completing their studies. Kenya’s youth unemployment situation is particularly serious. For instance, according to a?World Bank report , in the period 1998-2005, aggregate unemployment fell from 15% to 12.5%, but the share of the youth in unemployment rose from 60% to 72 %. And the rate of joblessness is almost 40% of youth. This is double the adult average of 21%.

This highlights the need for Africa to focus on supporting and nurturing entrepreneurship as a means of creating opportunities for the youth. Africa needs to be very creative in stewarding the youth dividend and especially in light of the emerging global economic crisis.

At Lapid Leaders Africa, we have continued to ask what it would take for young people succeed in the entrepreneurship space.

Building thriving entrepreneurship ecosystem

As an Obama Fellow, I have been privileged to work closely with the?Obama Foundation ?and see them promote the values of entrepreneurship as a pathway to drive change. When it comes to building a thriving entrepreneurship ecosystem, there are three key factors that play a crucial role: skills, markets, and capital.

While I have learned that access to capital is often the most talked-about element and is important for growing and scaling a business, markets are necessary for identifying and satisfying customer needs, and skills are necessary for running a successful operation. One skill that's often overlooked is needed to build the capital and markets needed to build a thriving entrepreneurship ecosystem, and that's leadership.

For micro businesses, leadership skills are the most essential, yet often the most neglected. Effective leadership is critical for success, especially in a rapidly changing business environment.

Studies have found that companies with strong leadership tend to perform better financially and achieve higher levels of customer satisfaction.?Harvard Business Review ?found that companies with effective leadership were 13 times more likely to outperform their competitors.?Center for Creative Leadership ?found that companies with strong leadership were more likely to outperform their competitors in terms of revenue growth and customer satisfaction. By equipping leaders with the necessary skills, companies can navigate complex challenges and seize new opportunities through strategic planning, innovation, and risk management.

Leadership the underrated skill

While access to capital is essential, leadership skills are equally important in ensuring that capital is used effectively. Effective leadership can help businesses develop strategic plans, manage risk, and seize new opportunities.

Furthermore, markets provide entrepreneurs with valuable feedback on their products and services, enabling them to refine their offerings to meet the needs of customers. This requires leaders to be responsive to feedback, willing to pivot when necessary, and adaptable to changing market conditions.

Building, leading, and growing a successful business can be an all-consuming challenge that leaves little time for leadership development. However, as business challenges expand, so should the leader's self awareness and strategic vision as this facilitates an alignment to values.

With the right combination of skills, markets, and capital, entrepreneurs can build a thriving entrepreneurship ecosystem that supports their growth and success.

P.S. If you're an entrepreneur seeking to enhance your leadership skills, we want to see your business grow. Our young people are depending on your business growing. So, if you're ready to level up your leadership and management skills, apply to join our Crossroads Program today! Simply click?here ?to learn more and sign up. Let's work together to build strong and sustainable businesses that make a lasting impact.

Written by Esther Mwaniki , Founder & CEO, Lapid Leaders Africa