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Common challenges African startups face

Africa has the highest rate of entrepreneurship drive with quite a large number of start ups that have the tendency to expand and grow into the next big thing but there are some external factors that seem to hinder this expansion and some of which are ;

1.SCARCITY OF CAPITAL; Startups require large amount of funding to thrive and grow especially in a very competitive market like we have but most times this funding most times is not available in this part of the world and as such limits the extent to which these companies expand.

2. GOVERNMENTAL REGULATIONS; Now one of the things Africa has been known for is poor leadership or bad government. Some governmental laws limit the activities of start ups in Africa. They have little or no support from the government.

3. GLOBALIZATION; The whole concept of globalization since inception has favored the developed countries more and helped them grow but has done more bad than good to developing countries. Even when start ups try to create something, foreign models are always preferred over theirs.

4. LACK OF INFRASTRUCTURE; Infrastructures such as constant power, good roads, strong internet service etc contribute to the success of a company and these are all absent in this part of the world.

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DTH Africa

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