In recent times various promising start-ups in Kenya have failed due to various reasons. The following are causes why many start-ups in Kenya fail;
Lack of Research
Many start-ups in Kenya receive a lot of funding in the initial stages but they fail terribly because of adequate market research.
It’s essential to carry out comprehensive market research using professionals in order to come up with an all-inclusive plan. It will help in navigating the harsh conditions that your startup may face.
Lack of Flexibility
The market dynamics change each and every day. Many enterprises fail because they refuse to adapt to the prevailing market conditions. Some remain with products and services that no one needs or wants. Therefore, start-ups have to adapt to when situations change.
Failing to Maintain Balance in the Market
Some start-ups crumble despite having millions because they are unable to maintain balance in the market. This situation occurs when resources are limited. Entrepreneurs should save resources by being frugal and coming up with intelligent ways to do with less.
Copying Existing Models
Many start-ups fail in Kenya because they try to imitate other business models. While this may work, at times it may also fail terribly. This is because the success of a certain entity does not necessarily equate to another. Various factors may have contributed to its growth.
Lack of adequate Funds
The lack of adequate funds is also another reason why start-ups fail in Kenya. It is an expensive affair and without the necessary resources, it can be a huge challenge.
Conclusion
Other factors include bad marketing, bad partnership, and not being an expert.
The Harvard Business Review notes that the failure of many start-ups in Kenya can be linked to the founder’s inadequacies to find a great fit and team to execute their plans to perfection. Stakeholders including strategic partners, employees, and investors are to blame.
To improve on this, founders and investors should invest in local talent that has the ability to bring in growth and have business models that can be sustained.
