Abstract
This article examines the role of technology startups in Africa's digital ecosystem. Africa's tech scene is witnessing a boom that has caught the attention of the global community. The boom has culminated in the increase in number of startups and technology hubs across the continent. The growth in Africa's technology sector comes at a time when mobile internet adoption in Africa continued to grow rapidly, with the number of mobile internet subscribers increasing three-fold in the last six years to over 300 million unique subscribers. But despite the boom, fragmented markets, lack of funding and unfriendly business environments pose problems for the continent's new entrepreneurs. Against this backdrop, this article recommends, among others, that African governments should collaborate with private investors to sponsor old and new startups in the continent; provide level playing ground for the development of infrastructure that would support the growth of technology startups; and make bandwidth accessible to startups at reduced rate.
TopIntroduction
The era in which we live is dominated by technology. Technology has continued to revolutionize the way people interact with one another, as well as conduct the operations of business on a regular basis (Decaux, 2018, Ogunfuwa, 2018; Osuagwu, 2019). Small and big businesses need technology to thrive. Businesses are growing and expanding across countries due to technological advancements. It is technology that gives organizations the strength to spread their wings. Oak (2018), notes that if not for technology, complex industrial processes would not have been carried out, and large-scale production of goods would have been impossible. Growing businesses create employment opportunities for people and technology plays a big role in business growth.
Apart from helping to shape the way things are done, technology has brought innovations into service delivery thus enabling human society to transform to a technology driven world where almost everything is being automated. Technology automates the most complex of processes, be it in communication, education, medicine or any other industry. With the application of technology, critical and time-consuming processes can be executed with ease and in less time. Laborious and repetitive tasks are best done by machines. People do not have to slog as much as they would have had to, if not for technology. With automation came efficiency and speed. They save human effort and time to a great extent and make life easy and comfortable.
Human life and technology cannot be separated, hence society has a cyclical co-dependence on technology (Risto, 2000). However, technology has also caused humans concerns. Its poor application has resulted in the pollution of the environment and it has also caused serious threat to lives and society. This therefore calls for proper use of technology. The biggest challenge facing mankind is to determine the type of future they need to have and then create relevant technologies that will simplify the way things are done.
In the last few years in Africa, technology startups have been developing software solutions which companies and organizations are leveraging on to improve service delivery, as well as address societal challenges. On a large scale, these efforts are geared towards closing the technological divide between Africa and Europe. Experts have noted that the growth potential for technology in the African continent is huge, judging by the remarkable breakthrough these startups are making in addressing workplace issues and getting many youths meaningfully engaged (Aliogo, 2018, p.29; Essien, 2018,p.81).
In the African context, technology innovation is seen as an option out of poverty, and most technology hubs in the continent are providing communities with infrastructures to support home-grown innovations. Startups require less infrastructures and financial risk for rapid growth than big industries. These hubs are not only providing startups with the technical support and access to fast internet, and free training but they also provide professional and social networks in which these technology entrepreneurs can thrive.
Key Terms in this Chapter
Funding: Is the act of providing financial resources, usually in the form of money to finance a need, programme, and project by an organization or company.
Investor: Is a person or other entity who commits capital with the expectation of receiving financial returns.
Scale-Up: A business that is in the process of expanding.
Digital Transformation: The process of using digital technologies to make a process to become more efficient or effective.
Startup: Is a newly established business venture that aims to develop viable business model to meet a marketplace need or problem. It is usually small and initially finance and operated by an individual or a handful of founders.
Business Environment: Is the combination of internal and external factors that influence a company’s operating situation. It can include factors such as clients and suppliers; its competition and owners; improvements in technology, laws, and government activities; and market, social, and economic trends.
Tech Hub: Is a physical space—a city, a suburb, or just a suite of offices—which has developed to help technology startup companies succeed.
Innovation: Is the process of creating value by applying novel solution to meaningful problems.
Fragmented Market: Is a marketplace where no single organization has enough influence to move the industry in a single direction. The market consists of several small to medium-sized companies that compete with each other and large enterprises.