General

PET stands for Political, Economic, and Technological factors, the three key external forces that shape a business environment. In today’s rapidly evolving global landscape, understanding the interplay of political, economic, and technological factors is essential for comprehending the complexities that shape our world. These dimensions are deeply interconnected, influencing each other in ways that can either propel or hinder societal progress. It is always helpful to analyse and delve into the nuances of these factors, exploring their current states, interrelations, and potential futures. By systematically analysing each of these factors, businesses can gain valuable insights into potential opportunities, threats, and trends that might impact their performance. This comprehensive understanding empowers us to: Make informed strategic decisions: A PET analysis provides a robust foundation for developing long-term business strategies, optimising product development, and identifying the best course of action for market expansion. Proactively manage risks and seize opportunities: By anticipating potential disruptions from political instability, economic downturns, or technological advancements, businesses can mitigate threats and capitalise on emerging opportunities to gain a competitive edge. Conduct effective market research: PET analysis is a springboard for in-depth market research. It provides context for understanding consumer behaviour, competitor landscape, and overall market trends, ultimately informing more intelligent resource allocation and marketing strategies. The PET Framework Political Factors in Business Operations The political landscape significantly influences business operations, affecting everything from regulatory compliance to strategic planning. One of the primary considerations under this umbrella is government policies. Regulations on taxation, labour laws, environmental standards, and trade policies can dramatically impact a business’s cost structure, market access, and overall profitability. For instance, changes in corporate tax rates can alter a company’s net income, while stringent environmental regulations may necessitate additional investments in sustainable practices. Businesses must stay informed about potential policy shifts and upcoming changes to align their strategies accordingly. This awareness is particularly crucial for industries heavily regulated by government policies, such as finance, healthcare, and energy (Grant Thornton, 2023). Political stability is another critical factor. Environments characterised by unrest, corruption, or frequent governmental changes can create significant uncertainty, which in turn can hinder business growth. Companies operating in such volatile contexts may need to adopt robust risk mitigation strategies, such as diversifying their operations across multiple regions or investing in comprehensive insurance plans. The World Bank (2021) notes that political instability can deter foreign investment and disrupt supply chains, leading to increased operational costs and decreased market confidence. International relations also play a pivotal role. Trade agreements, sanctions, and geopolitical tensions can influence the availability of resources, market access, and the overall business climate. For businesses with a global footprint, understanding these dynamics is essential for making informed decisions about international expansion or sourcing. For example, trade agreements can open new markets and reduce tariffs, enhancing a company’s competitive edge. Conversely, geopolitical tensions or sanctions can restrict market access and complicate supply chains. The Council on Foreign Relations (2022) highlights that geopolitical risks are increasingly shaping global business strategies, emphasising the need for companies to incorporate geopolitical analysis into their planning processes. Political factors are a cornerstone of the external environment that businesses must navigate. From understanding and anticipating government policy changes to assessing the stability of the operating environment and analysing international relations, these elements collectively influence strategic decisions and operational outcomes. By staying attuned to the political landscape, businesses can better prepare for risks and capitalise on opportunities. Economic Factors Influencing Business Performance The broader economic environment plays a pivotal role in shaping business performance, requiring companies to remain vigilant and adaptable to various economic conditions. Economic Growth Economic growth in Ghana plays a crucial role in shaping business performance by influencing consumer demand and spending power. When the economy is robust, with rising disposable incomes, consumers are more likely to increase their spending, leading to higher sales and revenues for businesses. This dynamic was evident in Ghana’s recovery period following the 2008 global financial crisis. As the economy rebounded, consumer spending surged, driving growth across various sectors, including retail, manufacturing, and services (Organisation for Economic Co-operation and Development [OECD], 2017). Conversely, during economic downturns, such as the one induced by the COVID-19 pandemic, consumer spending declines significantly. This downturn in consumer activity results in reduced sales and potential market stagnation for businesses. The COVID-19 pandemic severely impacted Ghana’s economy, causing disruptions across many industries, from tourism to agriculture. Businesses faced declining revenues as consumer confidence waned and spending power diminished (International Monetary Fund [IMF], 2021). To navigate these economic fluctuations, businesses in Ghana need to adopt adaptive strategies. During economic downturns, diversifying product lines can help mitigate risks by reaching new market segments. For instance, companies that traditionally focused on non-essential goods might pivot to essential goods and services to maintain revenue streams. Additionally, cutting operational costs through efficiency improvements and strategic downsizing can help businesses weather periods of reduced consumer spending. Inflation Rising inflation in Ghana can increase production costs, which in turn can squeeze profit margins if businesses cannot pass these costs onto consumers. For instance, the inflation spike in Ghana during 2021-2022 was primarily driven by supply chain disruptions and rising energy prices. These disruptions, exacerbated by global factors and domestic challenges, forced many businesses to adjust their pricing strategies and manage operational efficiencies to cope with higher costs (Bank of Ghana, 2022).  In such a context, businesses must employ various strategies to mitigate the impact of inflation. These strategies may include improving operational efficiencies, renegotiating supplier contracts, and finding cost-effective alternatives for raw materials. Additionally, businesses might explore adjusting their product offerings to focus on higher-margin products or services that can better absorb increased costs. Interest Rates Interest rate fluctuations in Ghana also profoundly impact businesses’ access to capital. The Bank of Ghana often adjusts interest rates to control inflation and stabilise the economy. For example, higher interest rates, implemented to curb rising inflation, can lead to increased borrowing costs for businesses. This situation makes it more expensive for companies to finance their operations and investment projects, potentially slowing

In today’s Ghana, there’s a growing divide in how people approach business. Some are driven by the allure of quick profits, the rush of sealing deals, and the relentless pursuit of revenue. These are the business mercenaries, charging into the market with dollar signs in their eyes. On the other hand, however, we find a different breed of entrepreneurs, those who chase something deeper, something more enduring. These are the business missionaries. For them, success isn’t just about the bottom line; it’s about purpose, impact, and leaving a meaningful legacy. This contrast between missionaries and mercenaries goes beyond just a mindset. It is a powerful reflection of the choices we make on our individual corporate journeys. Are we in it to serve, to build, and to transform? Or are we only after the cash and the clout? While mercenaries might achieve fast gains, history shows that it’s the missionaries who endure, who inspire, and who, ironically, often end up making even greater fortunes in the long run. Defining Business Missionaries and Mercenaries “Missionary” and “Mercenary” are more than just labels. They describe two fundamentally different mindsets that drive how people build and operate their businesses. Understanding these approaches sheds light on why some entrepreneurs stand the test of time while others flame out after a few quick wins. A business mercenary is driven by one goal: profit. They’re quick to spot an opportunity, strike fast, and extract value wherever possible. Mercenaries often operate with a focus on short-term gains, seeing success in numbers, revenue targets, and immediate results. This approach is characterised by high energy and competitiveness but rarely grounded in a deeper purpose. The focus is often narrow, driven by personal gain, and sometimes comes at the expense of customers, employees, or broader societal values. In contrast, a business missionary is fuelled by a commitment to something beyond personal profit. Missionaries start with a purpose, a vision of what they want to change or create in the world around them. Their approach to business is often slower, more deliberate, and focused on building lasting value. Missionaries see success not just as personal gain but as something shared with the people and communities they serve. They invest in relationships, prioritise quality over quick wins, and put their mission first, even when it means turning down lucrative offers that don’t align with their vision. While mercenaries may be faster to make profits, missionaries tend to build something resilient, something that people trust and respect. And for some strange reason, as we’ll see through real-life examples, this approach doesn’t just lead to a stronger business but often results in unexpected financial success. Go figure! Why Mission Matters Why is mission so powerful in the world of business? At first glance, chasing profit might seem like the surest way to success. After all, money is a tangible reward. Yet, history and experience show that mission-driven businesses are built on stronger foundations, inspiring greater loyalty from customers, employees, and communities alike. This loyalty is more than just a by-product; it’s a pillar that sustains businesses through challenges and economic cycles. A business driven by mission speaks to people’s core values. Customers today are more discerning than ever, gravitating toward brands they can believe in. When a business prioritises purpose, customers don’t just buy products; they buy into a story, a vision, and a shared sense of responsibility. This creates something money can’t buy: trust. Unlike mercenary-run businesses that pivot rapidly and focus on short-term gains, missionary businesses invest in cultivating these relationships. They understand that trust is an asset that grows over time, paying dividends long after the initial sale. From my personal experience working, trading, and growing with Ghana’s farmers, this is so true and so crucial to business success. You need their trust, and oh no, they’re not easily fooled into trusting you. Furthermore, mission-driven businesses attract and retain top talent. People want to work where they feel valued and part of something meaningful. In environments where mission drives decisions, employees are not just numbers but contributors to a larger goal. This sense of purpose motivates teams to give their best, fosters a collaborative culture, and significantly reduces turnover. In other words, a mission-driven company becomes a magnet for both loyal customers and dedicated employees, which are vital ingredients for sustained growth. The mission, then, isn’t just an add-on or a marketing tool. It is the very engine of long-term success. As we’ll see with our examples of business missionaries, this commitment to purpose often ends up creating far more wealth and success than any quick, mercenary approach could. Examples of Business Missionaries Some of the world’s most successful entrepreneurs are those who made a choice early on to prioritise their mission over immediate financial rewards. These “business missionaries” took calculated risks, often turning down tempting offers to stick with their vision, and, in time, reaped rewards far greater than the initial gains they left behind. One notable example is Mark Zuckerberg, who, at just 22 years old, famously turned down a $1 billion buyout offer from Yahoo for Facebook. Many questioned his decision at the time, but Zuckerberg’s commitment to his mission – to connect people globally – fuelled his resolve. He believed Facebook could transform how people interacted worldwide, and today, his company is worth about 1.5 TRILLION US DOLLARS as of this writing. Another example is Steve Jobs of Apple, a pioneer known for his relentless dedication to innovation and quality over profit. Jobs focused on creating technology to revolutionise people’s lives, often disregarding short-term financial targets. In fact, Apple’s product development cycles were famously slow and painstaking, a rarity in an industry driven by rapid releases. His mission-first approach led Apple to create products that people loved and trusted, establishing a brand loyalty that transformed Apple into one of the most valuable companies in the world. Then there’s Elon Musk, a figure who exemplifies the business missionary spirit. Musk is deeply driven by his vision for a sustainable future, investing heavily in Tesla and SpaceX

I can always tell when I’m dealing with a founder who’s been through it. It doesn’t take me long now. Their one giveaway is how they spend their money. When I sit down with early-stage founders or young entrepreneurs in Ghana, especially the ones looking for my money, it’s often one of the first things I look out for.  It would surprise you how many of them have fancy offices and sleek furniture that costs more than it should. I have even seen a branded coffee machine sitting in the corner like it’s a tech company from Silicon Valley. And I choke up just a little because usually, the truth isn’t what they’d want to hear when I myself have nice furniture. I choke up because I’ve seen that mistake before, many times. You get so caught up in looking successful that you forget what actually makes you successful. That office furniture, that coffee machine, it doesn’t move your business forward. It’s a distraction, and keeping it up will distract you at that early stage. And most importantly, it shows me that you, the founder, haven’t yet figured out one of the biggest lessons in building a company: it’s not your money anymore. The Common Mistake: It’s Not Your Money Anymore One of the biggest misconceptions I see among young founders is this idea that company money is still somehow their money. Let me break it down: once that cash enters the company’s account, it’s no longer yours. Whether you raised it from investors, bootstrapped it with your savings, or got a grant from some well-meaning institution, it doesn’t matter. The moment it enters the business, it belongs to the business. You are not the one going on a shopping spree. The company is. But here’s where the real problem lies. I’ve walked into offices of early-stage founders where I can tell, within five minutes, that the founder sees that money as their own personal bank account. You see it in the flashy office, the unnecessary perks, the lavish spending on things that don’t drive the company forward. And the reality is, when a founder thinks that way, they’re telling me something important, that they’re not yet ready to scale. They’re not even ready to build. I know because I’ve been there. When you’re just starting out, every cedi counts. Operating within this Ghana economy with global competitors already puts you a couple of paces back with one hand tied to your back, so if you don’t have the discipline to respect company money as separate from your own, you’ll quickly find yourself burning through cash faster than you can raise it. The irony is that the very thing meant to help you grow, which is the capital, is the same thing you’re misusing to look like you’ve already made it when you haven’t. Great Founders Are Frugal: The ‘P3p3i’ Mentality There’s something I’ve noticed across the board: the best founders are frugal. And I’m not just talking about being careful with spending. I’m talking about being p3p3i – the Ghanaian word that means miserly, calculated, or downright stingy. Some might think that being p3p3i is a bad thing. But in business, especially when you’re starting, it’s an essential survival skill. The great founders know that every cedi, every pesewa, counts. They’re the ones who understand that the money has to go into the right places, into the things that drive growth. It’s about making deliberate choices. Do you need that new laptop, or can the old one do the job for another year? Do you really need to be in that expensive co-working space, or can you work from a smaller, less fancy office for now? The truth is, most of the wildly successful founders didn’t start by paying themselves a salary. Not a dime, not a kobo. Everything went back into the company. Because they knew that the more they poured into the business, the faster it would grow. They weren’t distracted by flashy cars or flashy offices or the image of success. They were obsessed with the grind, the real work that builds something from nothing. It’s easy to be tempted by the trappings of success, but if you want to make it in the long run, you’ve got to embrace the p3p3i mentality. You don’t spend a cedi unless it’s going to move your business forward. That’s how you build something sustainable. Key Traits of Successful Founders: Company-First If there’s one thing all successful founders have in common, it’s their company-first mindset. They understand that, in the early days, the company comes before everything. It comes before comfort, before flashy offices, even before their own pockets. It’s not glamorous, but it’s real. The founders who make it are the ones who sacrifice. They’re not drawing salaries, they’re not living large, and they’re definitely not spending on things that don’t drive the business forward. They understand that what’s good for the company is ultimately good for them, but only if they put the company first. The office may be small, the chairs may be a bit less comfortable, and the pay cheque may be less, but they are laser-focused on growing the business. Let me give you a practical example. We’ve all read about founders who worked for years with no salary, living off the bare minimum, just so they could reinvest every pesewa back into their company. Why? Because they believed in the potential of what they were building. They understood that if the company succeeds, their personal success will follow. This isn’t just about being frugal; it’s about having the discipline to do what’s best for the business, even when it’s hard. So here’s a question for every founder: Are you prepared to live like this? Are you willing to sacrifice your comfort, your salary, and your image to put your company first? Because that’s what it takes. It’s not about looking successful; it’s about being successful. And being successful means prioritising the business over everything else. Practical Advice for