Fostering an entrepreneurship eco-system to grow African businesses

The entrepreneurial ecosystem in Africa is experiencing rapid growth, with new businesses emerging and unleashing the continent's potential. Despite this positive trend, the concerning failure rate of businesses within the past two years poses a significant challenge. CNBC Africa recently spoke with Elona Ndlovu-Hlastshwayo, an Entrepreneurial Coach at Tshwane University Of Technology, to delve deeper into this issue and explore the role of entrepreneurial coaching in fostering sustainable businesses in Africa. Ndlovu-Hlastshwayo highlighted the importance of transitioning from a culture of job seekers to job creators across the continent. She emphasized the need to nurture entrepreneurs who can generate employment opportunities, thereby contributing to the growth and development of the African economy. One of the key challenges facing entrepreneurs is ensuring business continuity and succession planning. Many family-owned businesses struggle with succession when founders exit, leading to business collapses. Ndlovu-Hlastshwayo underscored the significance of entrepreneurial coaching in developing the right mindset and technical skills necessary for business success. She emphasized the need for guidance and coaching during business transitions to ensure the new leaders are equipped to drive the business forward. Entrepreneurial coaching is gaining traction as a valuable tool in empowering entrepreneurs in Africa. While the concept may be relatively new in the marketplace, there is a growing recognition of its importance in building sustainable businesses. Ndlovu-Hlastshwayo highlighted the methodology employed by Swahili University of Technology, which combines coaching for mindset development with technical skills training tailored to the specific context of small business owners. Several programs aimed at entrepreneurial development through coaching, mentoring, and business advisory services are emerging across the continent. These programs play a crucial role in complementing traditional business support services and enabling entrepreneurs to thrive in competitive markets. Measuring the impact of entrepreneurial coaching on businesses is essential for evaluating the effectiveness of these programs. Ndlovu-Hlastshwayo emphasized the need for monitoring, evaluation, and longitudinal studies to track the lasting impact of coaching interventions. By future-proofing businesses through entrepreneurial coaching and holistic support, African entrepreneurs can scale their ventures and compete globally. The future of entrepreneurship in Africa holds tremendous potential, according to Ndlovu-Hlastshwayo. She envisions a borderless ecosystem that facilitates seamless trade and collaboration among small businesses across countries and regions. By breaking down barriers and fostering an enabling environment for SME development, Africa can unlock a new era of economic growth and prosperity.