New Research from Flourish Provides a Unique Glimpse into the Passions, Motivations, Challenges, and Coping Mechanisms Faced by Early-Stage Entrepreneurs Across 13 African Countries
NAIROBI, Nov. 12, 2024—Flourish Ventures, an early-stage venture capital firm with purpose, today published the first-ever, wide-scale survey of founder wellbeing in Africa, shining light on the experiences of early-stage entrepreneurs across the continent. Titled ‘Passion and Perseverance: Voices from the African Founder Journey,’ the research is conducted in partnership with Endeavor, Launch Africa, Madica, and research firms Econa and Startup Snapshot, and includes responses from more than 160 startup founders across 13 African countries, diving deeply into the stresses and challenges they navigate on their startup journeys and how they cultivate resilience.
At a high level, the survey revealed that entrepreneurs are passionate and love what they do—81% say they enjoy the journey of being a founder, and nearly two-thirds would rather start a new company than take a job if their business fails—but building a startup is gruelling. Most reported feeling lonely, stressed, and burned out, and too few are talking about it, highlighting the urgent need for greater support of founder wellbeing in the startup ecosystem.
“Prioritising founder wellbeing not only has a positive impact on founders’ lives, but also on the long-term success of their business,” said Ameya Upadhyay, Venture Partner at Flourish Ventures. “We hope that by sharing these early learnings, we can jumpstart a broader conversation about the state of founder wellbeing and how founders, and their funders, can better navigate it—in Africa and beyond.”
Here are some of the key findings:
Measuring the emotional toll
The founder psyche is one of high motivation and high pressure. Entrepreneurs are creative and ambitious. They are highly driven to create positive change in the world. But that doesn’t mean that the startup grind doesn’t take a mental, emotional, and physical toll on them or their families. The survey revealed that 86% of founders report an impact on their wellbeing, with 60% reporting anxiety, 58% high stress, 52% exhaustion and burnout, and 20% depression. Furthermore, no one is immune to these effects; even high-performing founders feel the pressure, with more than 7 in 10 founders who say their startups are “thriving” reporting an impact on their wellbeing.
The survey found that the primary drivers of stress come from the external, macroeconomic environment. Facing global economic shifts and local volatility, founders are navigating an unpredictable landscape, with African entrepreneurs reporting the top three sources of stress as fundraising (59%), inflation (44%), and other macroeconomic challenges (40%). The founder journey is always challenging, but prioritising wellbeing is even more pressing amid the added stressors of the current external environment.
Alone at the top, yet resilient
Founders are under immense pressure and bear immense responsibility, and know they must develop coping mechanisms that enable them to maintain resilience. To cope, founders focus on exercise (59%), personal relationships (49%), sleep (45%), and healthy eating (42%). Relying on other people is also critical for support, as founders who lean on personal relationships to cope with stress showed 13% higher wellbeing on average. The founders who break the silence and address their wellbeing concerns are better equipped to navigate the demands of their roles, and to foster a healthier, more resilient startup culture overall.
In the competitive startup scene, however, openness can be a challenge, as founders often hesitate to share their struggles or show vulnerability and weakness. 78% agreed that being a founder is a lonely job, while only 14% said they were fully open with others about their stress and just 42% reported talking to other founders. Therapy and coaching can be valuable, but many respondents said they face barriers to seeking support, and few turn to these types of resources.
The founder-funder relationship
With this survey, Flourish also wanted to dig into the role of investors and understand how they make founders’ lives easier, or more difficult. The founder-funder relationship is complicated, and instead of alleviating stress, the data revealed that many founders find themselves in situations where investors become a significant source of it. According to the survey, only 17% of founders are completely comfortable having open conversations with their investors, and only 11% are sure their investors care about their wellbeing.
This perception highlights a crucial gap in the investor-founder dynamic. While funding is essential, founders seek more than monetary support from their investors; they want to know their investors care about them as individuals, beyond their potential to improve financial returns, and desire relationships built on mutual respect. When asked how funders could better build trust, nearly half the respondents asked that investors stop making unrealistic demands, while a third asked for more transparency around decision-making and timelines, and around 40% said they wanted investors to get to know them as people and pay attention to the challenges they face.
Why this matters
Founder wellbeing is not a widely understood nor discussed topic, and as funders, it is important to highlight the correlation between founder wellbeing and business success. Founders in Africa face unique challenges, but they are far from alone in this experience—this survey’s findings are remarkably similar to others conducted across the globe. Many founders desire a deeper, more holistic support system that includes individual and co-founder coaching, resources for founder wellbeing, as well as leadership and management training.
There is no clear, easy, or one-size-fits-all solution, but addressing these needs is a strategic imperative, particularly as the African VC ecosystem matures and gives way to an increasing number of repeat founders. Fostering authentic relationships and investing in the wellbeing of entrepreneurs contributes to the success and resilience of portfolio companies by creating a supportive and nurturing environment in which startups can drive innovation and achieve long-term sustainability.
“While data is powerful, it is ultimately just a starting point for ongoing and open dialogue,” said Efayomi Carr, Principal, Flourish Ventures. “Our hope is that this research helps start a conversation, among both founders and funders, about how to build a stronger ecosystem where everyone is set up for success now and in the future.”
Visit here to review the findings in full; hear from founders of companies like FairMoney, Flutterwave, MaxAB, Paga, Pula; and learn how and why this research was conducted.
About Flourish Ventures
Flourish is an early-stage global fintech venture capital firm with purpose. With $850M under management, the firm backs bold entrepreneurs building companies to disrupt legacy structures, shape financial systems for the better and help customers achieve financial health and prosperity. Flourish’s portfolio includes leading African fintechs such as Apollo, FairMoney, Flutterwave, MaxAB, Paga, and Pula, as well as global fintechs Chime, Kin, Indifi, M2P, Neon, Hummingbird, Qoala, ShopUp, Swap, and Unit, among other high-growth companies. Flourish also brings together networks of entrepreneurs, ecosystem innovators, trailblazers, and industry experts to help create systemic change.
