APPROXIMATELY 90% of business start-ups fail globally within their first 10 years, with the majority of them owned by female entrepreneurs, a leading business strategist has said.
Entrepreneur and business strategist Tatiana Ellis revealed the alarming statistics surrounding business sustainability, particularly for female entrepreneurs at the Atlantic Council Conference two-day event which began in Harare yesterday.
The conference seeks to empower emerging women business leaders and enhancing their economic participation in Zimbabwe.
In her address, Ellis said the business life cycle was made up of four critical stages: Start-up, growth, maturity and decline or renewal.
“The start-up phase, which lasts from zero to two years, is characterised by high uncertainty and limited resources, making it a challenging period for new entrepreneurs,” she said.
“Following this, the growth stage presents opportunities for rapid expansion, but also increases competition. Understanding these stages is crucial for any entrepreneur looking to build a sustainable business. Survival in the start-up phase is essential as it lays the groundwork for future growth.”
Ellis further indicated that 10% of the businesses in Africa failed within the first five years, with only 20% making it to the five-year mark.
“By the 10-year mark, around 90% of start-ups in Africa would have failed, a trend that disproportionately affects women entrepreneurs,” she said.
Ellis called on businesswomen to document their strategies and learn from these sobering statistics.
“Awareness of the business life cycle and the challenges it presents is vital for anyone looking to succeed in today's competitive market,” she said.
Meanwhile, Women Affairs, Community, Small and Medium Enterprises Development minister Monica Mutsvangwa called for collective action to make the rights enshrined in the Constitution a reality.
She also outlined her ministry’s commitment to implementing various programmes targeting women’s empowerment, including financial inclusion, access to markets and rural industrialisation calling on financial institutions to collaborate with government to support women entrepreneurs.