JAMAICA Business Development Corporation (JBDC) is urging micro, small, and medium-sized enterprises (MSMEs) to prioritise well-researched product development for maximum profitability.
According to Keera Walters, assistant manager of the Business Advisory Services Unit at JBDC, there has been a trend of businesses emerging without proper research, and it is not exclusive to Jamaica. She highlighted that the risks associated with implementing ideas without considering crucial factors are many.
“What you find is that a person will get an idea and implement that idea in a vacuum. They go ahead, investing time, money, and sometimes even goodwill, calling on all resources, networks, and people who believe in them, without considering all the factors that could affect them,” Walters said in an interview with the Jamaica Observer.
She notes that without research there is a greater risk of failure due to a lack of understanding regarding the competitive market and industry conditions. In underscoring the importance of research in product development, Walters says that knowing exactly what the market lacks and understanding your customers’ needs is key to ensuring the type of product you develop, and therefore product development shouldn’t be based solely on personal thinking.
“Starting like that takes a high risk and a gamble,” according to Walters. “And while you might exceed, there is a bigger risk of failure. A lack of knowledge of the competitive market, the competitors in the race, and the condition of that industry or sector can impact performance.”
Although research might seem like a technical endeavour, Walters disagrees. She encourages entrepreneurs to conduct their research without the services of a research professional, as research involves gathering any relevant information.
“Sources could be your local newspapers because you are going to be exposed to business news and social happenings. You’re going to get information that could guide you about the economy and regulatory things,” Walters shared with the Business Observer.
She asserts that while people used to have to hire individuals for market research, technology has broken down those requirements and therefore businesses at different stages, even those not yet formalised and medium-sized businesses, should engage in research. With technology people can now go online and do a simple
Google search. Knowing what you are looking for can provide a wealth of information. Walters suggests looking at the social space, competition, and possibly technology that could also improve the business one currently has.
Source: Jamaica Observer – https://www.jamaicaobserver.com/2024/03/06/research-adapt-risk-vacuum-profit-loss-jbdc/
