Many entrepreneurs (incorrectly) think the biggest challenge is actually making the product. They are so pleased they have invented a widget that is more efficient or lower cost or fancier than the other widgets on the market. Since there are 1 bazillion people whose life would be immeasurably improved by getting access to their widget, and their widget is the best, success is a sure thing.
Wrong! Actually, virtually none of these widgets ever get to their intended customers because of supply chain and logistics challenges. It is incredibly difficult to cost-effectively reach and then service customers who are are sparsely populated, many hours from a city, and on dirt roads with no electricity, Internet or water. A 2011 U.K. government report noted that transport and supply chain costs can represent as much as 75% of the value of goods in Africa. I personally think this is a little high, but my own experience running businesses in Ghana shows that a $10 product manufactured in China almost certainly ends up being sold for $25 to $30 or more in the village in Africa.
