Nigerian tech start-ups have embraced public relations (PR) in an impressive yet uncharacteristic way. It is uncharacteristic because, in this market, start-ups do not care about brand building. All they want to do is sell, and they often turn to digital marketing to drive sales.
How this interest in PR amongst Nigerian founders came to be is unclear but two guesses are; the vibrant homegrown tech media that are giving entrepreneurs a voice and an admiration for Silicon Valley. For instance, Steve Jobs used PR extensively, created the persona of the t-shirt wearing CEO and more or less redefined the press conference with the first ipad launch. Years later, many tech entrepreneurs still follow that blueprint.
The formulaic approach to PR
For most Nigerian start-ups, their PR begins with a media blitz announcing a funding round. The founders seem to look the same in their corporate headshots – they wear branded t-shirts and strike the classic pose with arms folded in. Next, those that have raised significant funds sign on a celebrity as their brand ambassador, run an advertising campaign or sponsor a reality TV show.
Whilst PR practitioners welcome this interest from tech companies, as it implies an increase in potential client base, recent media reports suggest that Nigerian start-ups need to forget the hype and go back to basics.
Sustainability and tech start-ups
In March, Tech Cabal published an investigative report titled: Tyranny in the workplace: The chaotic culture of Bento Africa with allegations of an unhealthy corporate culture. The report led to conversations on social media with other disgruntled workers in tech sharing their experiences using the hashtag #horriblebosses. Barely a month later, the Flutterwave CEO and co-founder, Olugbenga Agboola, was accused of insider trading, fraud and employee harassment. More recently, there have been news reports of Abasi Ene-Obong stepping down as CEO, 54Gene, and Healthlane “is battling to stay in business.” With the collapse of the FTX, more tech start-ups are under threat.
The issues affecting the start-ups are similar, employee harassment and abuse, financial impropriety and chasing rapid growth in their desire to be like Silicon Valley. But Alex Lazarow, a global venture capitalist and author, gave very sound advise fit for Nigerian start-ups when he wrote: Forget Unicorns. Startups Should Be Camels.
Lazarow explains:
When being a unicorn is the objective, very rapid growth is the method. The tools are abundant venture capital, a deep and ready talent pool and a supportive startup ecosystem. This approach has worked well in Silicon Valley for some time. But in the wake of failed IPOs, the pushback against tech models and the range of social ills plaguing the Valley, the approach is losing its luster.
He adds,
An alternative playbook is increasingly coming from what I call the frontier — those ecosystems operating outside Silicon Valley and other major centers like New York, London and Shanghai…. For these startups, camels are the more appropriate mascot. Camels adapt to multiple climates, survive without food or water for months, and when the time is right, can sprint rapidly for sustained periods of time. Unlike unicorns, camels are not imaginary creatures living in fictitious lands. They are real, resilient and can survive in the harshest places on Earth. While the metaphor may not be as flashy, these startup camels prioritize sustainability, and thus survival, from the get-go by balancing strong growth and cash flow.
Over the years, the scope of corporate social responsibility (CSR) has expanded to include environmental sustainability. Unfortunately, many Nigerians only think of sustainability, in the context of preserving the environment or aiming to achieve the United Nations Sustainable Development Goals. But sustainability also encompasses business profitability.
One of the first academic definitions of CSR was given by Archie B. Carroll who developed the four-part framework below.
Casting ones mind back to this foundational concept of CSR is important as it reminds start-ups that their first responsibility is profitability not growth. The thinking is simple.
Investors expect a return on their investment, employees want to work for a profitable company that can pay their salaries, and the government wants to license businesses that will be profitable and pay taxes.
The Triple Bottom Line accounting concept (TBL or 3Ps – people, profit and planet), also emphasises that businesses should focus on profits as much as they do social and environmental concerns. A business should be accountable to its people, be profitable to deliver returns to investors, and protect the environment in which it operates.
Consequently, some organisations no longer refer to CSR. Rather, they refer to corporate responsibility and sustainability (CRS). CRS keeps such organisations grounded in their accountability to their various stakeholders and society, where corporate responsibility involves complying with societal laws, ethical behaviour and corporate governance (accountability, transparency, fairness, responsibility, and risk management) and sustainability means building a business that will be profitable for the foreseeable future and preserves its operating environment. This is in sync with Lazarow’s argument.
While “balancing strong growth and cash flow” as stated by Lazarow, Nigerian tech start-ups need to also address employee allegations of abuse and harassment as part of its ethical responsibilities. This can be achieved through a well thought-out employee relations strategy.
Although internal communication is more widely used to refer to employee relations, it is much more than communication. Employee relations is three-fold: communication, collaboration and engagement. Communication should be with management as well as peer-to-peer, employees should be empowered to collaborate with their colleagues and employee engagement occurs when staff are motivated and feel involved in decision-making.
Sources:
Toolshero
Entrepreneur
