Key Takeaways
- People resist change because they are used to their old ways and feel comfortable with what they know.
- Fear of the unknown makes people hesitant to accept new ideas.
- Poor infrastructure and strict regulations can slow down the growth of new businesses.
Why Innovative Businesses Struggle to Succeed
Starting a new business with a unique idea is exciting, but it’s not always easy to make people accept something totally different from their usual lifestyle.
A descriptive business follows a familiar model that people already understand, like a regular taxi service or a neighborhood grocery store. These businesses don’t require much convincing because they offer services people are used to. On the other hand, a disruptive business introduces something completely new that changes the way things have always been done. However, many of these ideas struggle to take off because people prefer what they already know.
We want to help you learn why your innovative idea will face huge resistance, and what you should do to salvage the situation (in the next session).
Why Disruptive Businesses Struggle
1. Familiarity: People Stick to What They Know
Humans naturally resist change, especially when it challenges long-standing habits. In Nigeria, for instance, the adoption of Compressed Natural Gas (CNG) vehicles has been slow due to the deep-rooted familiarity with petrol-powered cars. Many people are skeptical about switching to CNG, even though it is a more cost-effective and environmentally friendly option.
To make matters worse, viral videos circulated, showing vehicles going up in flames, with rumors suggesting they were CNG-powered. Even if these claims were false, the perception created fear, reinforcing people’s reluctance to embrace the new way of powering car engines. This illustration is a perfect example of how familiarity can be a significant roadblock to disruptive innovation.
2. Fear: The Anxiety of Uncertainty
When new technology emerges, excitement is often followed by fear. Take Artificial Intelligence (AI) as an example. When AI tools became mainstream, many professionals, including content writers, initially celebrated the ease they brought to work. However, as AI improved, concerns grew over job security.
Questions like:
“Will AI replace me as a content writer?”
“What if my work seems as good as We AI-generated content?”
Such fears slow down AI acceptance and other disruptive innovations. If people perceive a new technology as a threat rather than an opportunity, they will resist it and make adoption difficult for you.
3. Infrastructure and Regulatory Challenges
Apart from habits and fear, another major challenge is the lack of proper infrastructure and regulatory support. For example, in West Africa, fintech adoption was slower compared to East Africa. A key reason for this was the stronghold of traditional banking systems and rigid regulations.
In contrast, East Africa, particularly Kenya, had a more progressive regulatory environment, allowing mobile money services like M-Pesa to thrive. West African consumers, on the other hand, were more accustomed to traditional banks and slower to trust digital financial solutions, further delaying fintech growth in the region.
To Wrap It Up
If you’re coming into the market with disruptive business ideas, you’ll face resistance. And you should be ready for it. The idea is that you’re fully prepared to know what you’re at loggerheads with in the market.
But, as seen in industries like fintech and AI, with time, education, and better implementation strategies, disruptive innovations can eventually break through and reshape industries.
UphivaBETAR
