2024 Startup Graveyard Report: Governance Gaps Contribute to High Failure Rates in Africa’s Startups
- 58 percent of startups fail due to financial difficulties.
- 27 percent fail due to operational issues.
- 17 percent fail due to regulatory challenges.
The report highlights a critical issue within the African startup ecosystem: the misconception that governance is unnecessary for smaller ventures. This perspective not only jeopardizes the future of many promising startups but also undermines the potential for sustainable growth. A shift in mindset towards viewing governance as a strategic asset could significantly enhance the resilience and success rates of startups across the continent.
