Wednesday, 30 April 2014

what makes Somalis such successful entrepreneurs?

Lessons from Somali Entrepreneurs

How They Are Transforming the Economic Landscape of Minneapolis
It had been a long day at work, and between a poor international phone connection and less than specific instructions from my friend on the other end of the line, I was losing patience.
“It’s the Somali bank. Just find the Somali place that does money transfers.”
Dobuol was in South Sudan and trying, unsuccessfully, to explain exactly which company I should use to wire money he had electronically transferred into my account earlier that day. This wasn’t the first time he had asked me to transfer money since he’d left for Juba. I had used Western Union the previous time, but he had quickly realized he was losing a lot of money on the exchange and I was paying too much for the service.
But after being in the city for a few weeks, he had heard talk of a Somali money transfer company that would give him dollars in South Sudan at twice the exchange rate he was getting through Western Union. Sure enough, after a little asking around in the Somali plaza, a mini market of Somali businesses near where I was living in Atlanta, I foundDahabshiil.
It was a superior business in every way. The service fee was about half of what Western Union charged, Dobuol got a better exchange rate, the transfer happened quicker, and the salespeople were friendlier. I continued using Dahabshiil even when I moved back to Minnesota, as it wasn’t hard to find their counterpart in Minneapolis.
Minnesota has the highest population of Somali people of any state in the United States, and Minneapolis the most of any city in Minnesota. The Somali community is so concentrated in Minneapolis, that one neighborhood has come to be known as Little Mogadishu, after the capital city of Somalia.
Like any recognized region, what makes Little Mogadishu so renowned isn’t just the sheer number of Somalis in the area, but the wealth of businesses it supports. This area contains two exclusively Somali malls and at least 375 Somali owned businesses—pretty impressive for a population that has only been living in the area for a little over ten years.
So what makes Somalis such successful entrepreneurs?
Various cultural traits unique to Somalis have a significant influence on both their business practices and success as entrepreneurs.
One marked difference between Somali immigrants and other Minnesota business owners is their devout adherence to the beliefs and practices of Islam. A recent survey, conducted out of the University of Minnesota, titled Achieving Success in Business: A Comparison of Somali and American-Born Entrepreneurs in Minneapolis, found that 98.9% of Somalis described their religious beliefs as ‘extremely important’ whereas only 48.9% of non-migrants surveyed expressed this level of commitment to their faith and 15.6% reported their religious beliefs to be ‘not important at all’.
Many Muslims, Somalis included, believe that Islam strongly discourages or even strictly prohibits the use of credit or accepting loans that include the payment of interest. Obviously, this belief has a significant impact on how Somalis must go about funding their businesses.
Luckily for Somalis, Minnesota has the highest number of immigrants as a result of second-migration than any other state and is home to several organizations andnonprofits that work to provide loans and ways of financing that are sensitive to those of varying cultural backgrounds. Thus, Somalis have the opportunity to start businesses without having to worry about large loan and interest payments haunting them years into the future.
Another way Somalis look to fund a business endeavor and achieve success in a shrinking economy is through their close ties and networking with other Somalis.
As my friend Mohamed once explained to me, Somalis know anyone and everyone. That was a hindrance to him as a particularly wild teenager, but it is extremely beneficial when it comes to business. Due to their incredibly social and charismatic nature, Somalis have no trouble finding both other Somalis that can serve as business partners and customers who are willing to buy their products.
The same U of M survey discovered that the suppliers of products sold at numerous Somali stores were actually other Somali businessmen.
Sometimes in the ferociously competitive business culture of the United States, we often forget that working together and helping other aspiring business owners can actually have a positive effect on our own financial goals. Though loans are at times unavoidable, with a little creativity when it comes to financing we can avoid dooming ourselves to decades of debt.
If current and aspiring business owners took a lesson from the Somalis, everyone would benefit. And if you are looking for suggestions, just stop by Lake Street, Minneapolis. I guarantee a smiling Somali business owner will talk your ear off, try to sell you something, introduce you to other cheery entrepreneurs and become a fast friend.

The most entrepreneurial people in Africa


Somalis: The most entrepreneurial people in Africa


They might be shocking at ruling their own country and taking orders from their leaders but it is due to their entrepreneurial spirit that the Somali grew up with the mentality of leadership. When you have leadership drives you also have entrepreneurship with it because you don't want to take orders from a 'boss' so you go out and set your own business even if its a taxi. Somalis have a thing with taking orders.

Here we go. The list is long but I will just take one or two from each country in the region.

Lets start with Uganda.

Image

City Oil Ltd owned by Hassan Ahmed, a Somali spent a lot of his time in Uganda. 

Hassan Ahmed, a Ugandan Somali, and Director of the prominent Somali-owned City Oil franchise, hints at the secret behind Somalis’ success in business. “Somalis have always had links to many areas of the world”, he says.

“With that link, they are able to have very good sourcing. Every time you source well, it will result in benefiting the consumer, because you are able to bring the costs down.”

That strategy bodes well with Uganda’s consumers who depend heavily on imports but whose purchasing power is low. It also explains why Somali businesses have become an accepted part of Uganda’s commercial life, covering essential services like fuel stations, foreign exchange, money transfer, and supermarkets. 

Image

Oasis Centre Mall (above picture) - Kampala, Uganda - cost over $25 million and owned by Amina Mogeh Hersi, a Somali born in Kenya, whose father made riches in the cement industry.

This is the owner below. She is whose who in Uganda and has dinners with the elite of East Africa including Somali presidents when they visit Uganda.

Image

Amina has launched several multi-million dollar projects in Kampala, Uganda,[1] such as the luxury mall the Oasis Centre and the Laburnam Courts. She also runs Kingstone Enterprises Limited, one of the largest distributors of cement and other hardware materials in Kampala. In Uganda they call her Mama Harris.

Image

Image

Gateway - Uganda

The rise, fall and rise of Uganda’s rich

Hussein Shire

He’s one of the quiet tycoons. He keeps out of sight and hates showing off his wealth. But when he walks into a room, his very presence whiffs of wealth.

Shire is the owner and CEO of Gateway, one of the largest bus companies in the country - with more than 100 buses operating all over Uganda.

Gateway is also the only Ugandan company that operates a service to Kenya.

Born in Tororo, Shire, a Somali by origin started his career in the transport industry, ferrying passenger in a blue Peugeot 504 car along the Tororo – Malaba highway.



Ugandan media says:

Being a resilient people, Somalis have prospered because they are willing to take risks and accept smaller profits. Yassin Mattan, Head of Business Affairs for the Somali Community Association in Uganda, explains that when it comes to trade, “everyone wants to be very competitive in terms of the pricing factor, so it’s the margin that people are looking for.

While some people are looking for a higher margin, these guys [Somalis] are looking for a lower margin. They’re looking at the turnover.”Hassan Mohammed Hersi, for example, has been Manager of Half East Forex Bureau on Kampala Road, for 11 years. 


African Express Airways - Kenya

African Express Airways is the second fully Kenyan designated airline to over 30 countries in four continents. The airline is largest and oldest privately owned in East Africa based at Jomo Kenyatta International Airport in Nairobi.

It is owned by Captain Musa Bulhan, who is the most qualified pilot in Kenya. Only the national carrier of Kenya enjoys same privileges with this airline. 

Away from public glare, Capt. Musa’s airline has a distinct characteristic-it is one of the country’s two designated carriers, the other being the national career, KQ. 

Image

Amal Plaza - Eastleigh - Kenya

Somalis create their global commercial hub in Nairobi’s Eastleigh estate.

Immediately you step-off the noisy and brightly coloured public service minibuses, a blast of hot air mixed with dust flashes across your face and a din replaces the blaring music you’ve just left behind.

Image

Welcome to Nairobi’s Eastleigh estate, you are now at the global commercial hub of Somali entrepreneurship.

Image

Youngest female banker in Kenya and also a Somali girl.

It’s Wednesday morning inside Chase Bank, Eastleigh branch. Ibada Ahmed seems unfazed by the chaos outside on the famous First Avenue – matatus and trucks hooting, touts and hawkers calling for customers, and the hordes of traders and buyers going about their business.

Image

Bluebird Aviation - Kenya

The company’s chairman is Col. (Rtd) H. A. Farah, who is a 25 year veteran of the Kenyan Air force. A Somali born and raised in Kenya. He found the business with two of his friends.

Image

Hass Petroleum - Kenya but also operating in Tanzania, Uganda, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo and Somalia.

Founded in 1997 by two Somali brothers, the late Abdirizak Ali Hassan and Abdinasir Ali Hassan they took their family name HASS (Hassan).

The company recently won major agreement with the Kenyan government.

"Yesterday Hass placed a tender at the Ministry of Energy to deliver 34,143mt of gasoil to the industry through the open tender system (OTS) and emerged victorious after a fierce contest with other big names in the petroleum importation arena. Among those who placed their bids were Vivo, Ggapco, Galana, Kencor and Gulf who put their premiums at 34.78, 29.64, 37.2, 29.89, 34.46 and 30 US dollars per metric ton respectively. Hass bid the lowest with USD28.44 per ton thus saving the country millions of shillings and as a result adding the name of the company among the list of importers for bulk petroleum into the country ."

http://www.hasspetroleum.com/

Image

WorldRemit Money Transfer - the largest online money transfer company. Most of his clients are outside the Africans including Philipinos and others. They can transfer money online from anywhere in the world. It won awards for this.

It was founded by Dr Ismail Ahmed, a Somali from UK.

Image

Above: Dahabshiil CEO Abdirashid Mohamed Saeed Duale


Dahabshiil - Hargeisa, Somaliland region, Somalia.

I know most Ethiopians know this one. It was founded in the late 1970s by Mohamed Saeed Duale and today it is the largest money transfer company in the world operating over 144 countries with over 1,400 branches. All the UN and Aid agencies use it to transfer millions of dollars fro countries such as Somalia where there are no central banking or recognized government (until recently).

It handles about 60% of $1.6 billion Somalis abroad send home and all the other billions from Ethiopians, South Sudanese, Arabs etc.


Image

Tansoma Hotel - Dar es Salaam, Tanzania.

Image

Owned by Somalis and the name is Tanzanian-Somali (TanSoma).

Oceanic Bay Hotel - Tanzania

Image

Again Somali hotels taking shape in many parts of Africa.

Image

Citibank CEO - Tanzania

Citi Group has appointed Mr. Jamal Ali Hussein, Chief Executive Officer for Citibank Tanzania Limited, with effect from July 1, 2010. Mr. Hussein brings to the bank over 20 years experience as an accountant, a consultant and senior banker to the local financial institution. Mr. Hussein joined the Citi Group in New York, in 1997 and served in different capacities in Trinidad and Tobago, the Bahamas, Saudi Arabia, Poland, Mexico, Britain, Indonesia and Kenya. Until his new appointment, he was CEO for Citi Bank Ivory Coast since May 2006.

He graduated from Harvard and wrote a book called 'From Nomad to Harvard'. He arrived in the US with less than $100 in his pockets.

Image

Hashi Energy - Kenya

Hashi Energy Ltd was established in Kenya in 1991 by Mr & Mrs. Hashi. The company was known as Hashi Empex Ltd before undergoing corporate re-branding in 2008.

Image

Image

Image

Image

Hotel Âncora de Vilankulo - Mozambique.

Owned and managed by Abdullahi Nur Takar, a Somali.

Image 

Image

Image

Transportation - Kenya and east Africa.

In the last 17 years, over ten Somali trucking companies have been formed in Kenya. With an initial capital investment of around $5 million each these now show substantial annual profits of around $20 million.

I am by now sure the Ethiopians are asking themselves what about Ethiopia and Somalis there.

Image

MAO Harrar Horse - Ethiopia

Mohammed Abdillahi Kahin Ogsadey (b.1920s-2006) was a Somali business tycoon based in Ethiopia, where he established MAO Harar Horse, the first African corporation to export coffee. 

Image

If you think the Harrar Horse logo is popular here, you should see what it means in Ethiopia. Ogsadey’s reputation is legendary: first beginning as a truck driver, then becoming the first native African coffee exporter in Ethiopia, and ultimately, building a coffee empire which is famous throughout the county and the world. 

Image

Continental Oil Company - Zambia

In an effort to expand operations in Zambia, a local firm Continental Oil Company has undertaken to invest K3.5 billion in the construction of a new filling station in Kasama to serve Northern Province.

Company representative Osman Farah said in Kitwe yesterday that, the nine- month project was expected to commence in the first week of January, 2012. Continental Oil Company is a Zambian registered company owned by a Somali with its presence in Ndola, Kapiri Mposhi and Mpika.

Mr Farah said the proposed Continental Oil Company modern filling station is located at Plot Number Six, Mbala Road in the Kasama Central Business District.

The company has fuel depots with the capacity of 2.5 million litres, while an additional 3.5 million litres would be included to expand capacity to six million litres.

Ayaan Adam - East Africa.

Image

Ayaan Adam is currently the Head/Manager in charge of International Finance Corporation's (IFC) Private Equity and Investment Fund Portfolio. She also heads new business opportunities in infrastructure funds, distressed assets, listed funds and other single sector funds. She is responsible for US$2.5 billion portfolio involving 160 different relationships with private equity and venture capital funds invested or investing in Asia, Africa, Europe, Middle East and Latin America.

Image

SBI (Somaliland Beverage Industry) - Hargeisa, Somalia

Owned by Osman Gelle family (two brothers) and is the largest beverage company in Somalia with Coca Cola investing $17 million dollars.

Image

Image


Daily Paper - Somali fashion label

Image

Sunday, 27 April 2014

8 Secrets of success


business models


The 10 Myths of Entrepreneurship


Key to Success and The 5 Fears That Hold Entrepreneurs Back


Words of Wisdom From Self-Made Billionaires (Incredible Tips For Extreme Success)


How Do You Start A Business with No Money and Bad Credit - Success Ideas & Strategies


Ambition. Discipline. Purpose. The Journey of Being an Entrepreneur with Gurbaksh Chahal


The Power of Entrepreneurship (Video Produced by Intel)


The Power of Entrepreneurship (Video Produced by Intel)
http://www.youtube.com/watch?v=oELkpD7YBQQ

Today's young entreprenuer




Think of a great idea





THINK