Why do 90% of startups fail?
This is a question that has launched countless research reports, accelerator programs, funding initiatives, and late-night founder conversations.
A study conducted in 2020 estimates that as many as 54% of African startups fail before reaching their fifth anniversary. While 75% of startups in Ethiopia and Rwanda were unable to survive, Kenyan startups demonstrated greater resilience, with a failure rate of just 24% in the same year. The reasons are familiar: limited access to funding, cash flow constraints, regulatory uncertainty, infrastructure challenges, talent shortages, and, in many cases, products that never quite find a market willing to pay for them.
At first glance, this seems to challenge the narrative of "Africa Rising." How can a continent celebrated for innovation, entrepreneurship, and economic opportunity also experience such a high rate of business failure?
The answer is simple: Africa is not unique.
Globally, startup failure rates are remarkably higher. Research consistently shows that roughly 90% of startups fail worldwide, with many shutting down within their first few years. Failure is not an African problem. It is an entrepreneurship problem.
The more interesting question, therefore, is not why startups fail.
It is why so many support systems designed to help them succeed fail to produce lasting outcomes.
After all, billions of dollars are invested annually in entrepreneurship support. In the first quarter of this year alone, $300 billion was invested into startups.
Accelerators, incubators, investor readiness programs, export development initiatives, SME growth programs, and market expansion projects exist across every region. Founders attend workshops. They receive mentorship. They gain access to networks. Some secure funding. Others receive technical assistance. Yet many still struggle to convert knowledge into sustainable growth.
Why?
Because support does not automatically translate into execution. And execution cannot improve if nobody is measuring it. And this is where Spurt! comes in. Spurt! is an ecosystem builder and a people technology solutions company that helps African entrepreneurs build more efficient, more productive and strategic businesses. Spurt! offers Monitoring and Evaluation services to investors, founder training programs, Business consulting agencies, etc to help them gain in-depth visibility into the efficacy of their many programs.
The Gap Between Learning and Growth
Many entrepreneurship programs are exceptionally well-designed. The curriculum is strong. The facilitators are experienced. The intentions are genuine. The challenge emerges after the training sessions end.
Founders often leave these programs energised, inspired, and armed with new strategies. For a few weeks or months, momentum is high. Then reality arrives. Customer acquisition becomes harder than expected. Market-entry assumptions prove inaccurate. Hiring challenges emerge. Operations become more complex. Cash flow pressures increase. Expansion plans stall. Without a structured system to monitor progress, identify bottlenecks, and adapt interventions, many founders gradually return to old habits and familiar challenges.
The result is what could best be described as a "knowledge-to-execution gap." The founder knows what should be done. The program understands what success should look like. But neither party has sufficient visibility into whether meaningful progress is actually being made. This Problem Extends Beyond Startups The issue becomes even more pronounced when viewed through the lens of organisations supporting business growth. Consider an international company entering a new African market. Or an African business expanding into multiple countries. Or a development agency funding SME growth initiatives. Or an investor supporting portfolio companies across diverse sectors. The challenge is remarkably similar. Success depends not only on strategy but on execution. And execution becomes difficult to manage when progress is not systematically monitored. For trade organisations, enterprise support organisations, investment promotion agencies, and funders, this creates a significant blind spot. They can measure activities. They can count participants. They can track attendance. But can they confidently determine:
Which businesses are improving?
Which interventions are working?
Which founders are at risk of stagnation?
Which support mechanisms should be adjusted?
Which companies are genuinely ready for expansion?
These questions require something more sophisticated than program reporting. They require continuous performance monitoring. What Can Be Done Differently? The answer is not more workshops. Nor is it more funding. The answer is building support systems around measurable progress rather than one-time interventions. Effective business support programs should be able to:
Profile Every Business Individually
No two businesses are identical. A fintech expanding into East Africa faces different challenges than a manufacturing company entering West Africa. Understanding each business's starting point is critical. 2.Diagnose Current and Future Needs
2. Many programs focus on current challenges. The most effective interventions also anticipate future bottlenecks before they emerge.
3. Deliver Tailored Recommendations
Generic support produces generic outcomes. Businesses require support that reflects their specific stage, sector, growth ambitions, and operational realities.
4. Track Progress Continuously
What gets measured gets managed. What gets monitored gets improved. Regular assessments provide visibility into what is working and what requires adjustment.
5. Provide Post-Program Support
Growth does not stop when a cohort graduates. In many cases, the most critical challenges emerge after formal training concludes.
Turning Monitoring Into a Strategic Advantage
This is the approach currently being implemented through Spurt!'s partnership with Crossover. Rather than treating assessment as a one-time exercise, the process begins with a baseline diagnostic designed to understand each business's realities, opportunities, and constraints. The findings are then used to develop tailored support pathways for participating businesses.
As founders progress through the program, structured assessments are conducted at multiple intervals to evaluate changes, identify emerging challenges, and refine support strategies accordingly.
By the end of the program, a final assessment provides a comprehensive view of progress achieved and areas requiring continued attention. The result is not simply training. It is a continuous improvement framework.
Why This Matters
For program managers, investors, funders, and ecosystem builders, one of the greatest challenges is visibility. Without clear performance intelligence, support often becomes reactive. With structured monitoring and evaluation, support becomes proactive. Program coordinators gain real-time insight into participant progress. Interventions become more targeted. Resources are allocated more effectively. Businesses receive support that evolves alongside their growth journey. Most importantly, organizations can move beyond measuring activity and begin measuring outcomes.
And in a world where funders, investors, and stakeholders increasingly demand evidence of impact, that distinction matters. A lot. Perhaps the question is not why startups fail. Perhaps the better question is: How many of them could succeed if we paid as much attention to tracking progress as we do to delivering support? The future of enterprise growth may depend on the answer. Want to take your program to greater heights?
Send us an email at partnerships@spurt.group.
