There is an old proverb that says: from small acorns grow tall oaks. Companies start with an idea and some become successful companies. In 1997, a small group of UK entrepreneurs, together with business partners from Ghana, established the Blue Skies fruit processing factory in Ghana. The concept involved tropical fruit processing, cooling and air freight to the UK and elsewhere in Europe. Passenger planes flew from Accra each night with capacity for extra cargo, so transportation was readily available.
Business success is based on a clear vision, but this must be backed by proactive behavior and effective action. During the first year there was a need to identify and overcome the obstacles that would have prevented the new company from reaching critical mass. As in many business situations, progress is much easier if stakeholders are identified, potential problems are avoided, and resources are effectively focused. With a brand new operation, systems need to be set up. By 1998, the Blue Skies business had begun to export products.
One point to keep in mind is that Blue Skies, like all businesses, required a team of people to overcome teething problems and help grow the business. Initially, there was a need to confirm the potential market, clarify the essential steps in the distribution process, and identify how to build the factory. In almost every organization, it is beneficial to look at the network of connections that contribute to successful outcomes. This is becoming more and more important in modern business.
The Blue Skies story provides a useful example of successful investing in a developing economy. The start-up highlights issues related to individual initiative, teamwork and personal resilience. There was also a need to appreciate the broader social and cultural context. Tea World Bank Sustainable Agriculture Group featured Blue Skies in a guide to making value chains work in agribusiness in sub-Saharan Africa.
The guide noted that since 2000, the company has grown tremendously, expanding its value chain by adding additional operations to its processing facilities. She goes on to point out that several factors that contribute to the success of Blue Skies… such as high levels of trust, information sharing, innovation, value addition, positioning collaboration and risk mitigation. Blue Skies emphasizes prompt payment to farmers, provision of training and education on EurepGAP standards, farmer certification, interest-free loans for dedicated farmers, and a willingness to improve local road infrastructure to improve access to farms for company trucks.
Looking back to 1997, we can see the steps that allowed a small start-up company to grow into a multinational operation with production facilities in multiple countries. The vision provides the starting point, but other guiding principles also contribute to long-term success.