What African Fintech Startups Can Teach Silicon Valley About Longevity

Entrepreneurial firms have traditionally suffered from high failure rates. According to 2022 Bureau of Labor Statistics data cited in Harvard Business Review, roughly 65% of companies in the U.S. alone fail during the first 10 years, and only about 25% survive for 15 or more years. Those grim numbers raise the question: What factors distinguish firms that survive and thrive from those that fail?

One of the most conventional strategies for small-business longevity is the acquisition of financial resources. Although this approach has gained popularity in the West, especially among technology startups in Silicon Valley, it has not ameliorated the startup-survival problem. In fact, it seems to have exacerbated the situation. Statistics show that U.S.-based companies raise the most capital and experience the lowest longevity, whereas Africa-based companies raise the least capital and experience the highest longevity.

Our research shows what might be responsible for…

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This article was written by Glory Enyinnaya and originally published on hbr.org