Three Stakeholders in Business Entrepreneurs Must Not Ignore

In business, certain stakeholders are crucial to the success and sustainability of an enterprise. According to the Corporate Finance Institute, a stakeholder is any individual, group, or party that has an interest in an organization and the outcomes of its actions. Stakeholders include employees (or replacers), suppliers, customers, the government, and communities. However, for the purpose of this article, I will focus on customers/clients, suppliers, and employees/replacers.

Customers/Clients

One essential thing an entrepreneur must understand is that without customers, a business cannot exist. Therefore, customers should be treated with utmost care, especially in a competitive market. It’s important for businesses not to focus solely on a particular client or customer, no matter how much profit they may generate. For example, if a courier company serves only one client, such as a restaurant, the business may suffer if that restaurant experiences challenges. When the main customer’s business is affected, the courier’s income could also be reduced. Hence, no matter how much you earn from your highest paying customer, it is prudent to prospect for other customers to ensure business stability.

Suppliers

According to Oberlo, a supplier is a person or business that provides products or services to another entity. Suppliers are vital because without them, businesses may not be able to meet the needs of their customers. Unfortunately, many businesses in Ghana rely solely on one supplier, which poses a significant risk. For example, an aluminum fabricator depending on a single company for supplies could face serious issues if that supplier shuts down. Since many businesses in Ghana rely on supplier credit, finding an alternative supplier may become challenging, further complicating the situation. It is essential for business owners to diversify their supplier base to reduce dependence on a single source.

Replacers (Employees)

An employee, as defined by The Balance Careers, is an individual hired by an employer to perform specific tasks. In many Ghanaian businesses, employees are often referred to as replacers, especially when the business owner is absent. It’s important for employers (entrepreneurs) to treat these replacers with respect, as they are direct stakeholders in the business.

As an entrepreneur, it is necessary to remain involved in your business, regardless of how efficient or skilled your replacers may be. Often, customers relate better with replacers than business owners, which is beneficial but can also present risks. Replacers may be tempted to open similar businesses, potentially drawing customers away and affecting your income.

Additionally, it’s essential for entrepreneurs to learn basic skills related to the services they offer, especially in technical fields. For example, in businesses like hairdressing, many enterprises collapse when the main replacers leave. Having basic technical knowledge also makes it easier for business owners to detect pilfering or misconduct within the business.

Conclusion

All three stakeholders—customers, suppliers, and replacers—have a significant impact on the success of a business. It is crucial for an entrepreneur to manage these relationships properly to ensure long-term business growth and stability. By paying attention to each stakeholder’s needs and concerns, business owners can build a more resilient and successful enterprise.