Dear Entrepreneur, Accountability isn't an option - it's the foundation of business relationships

Dear Entrepreneur, Accountability isn't an option - it's the foundation of business relationships

Dear Entrepreneur,

The beginning of the year is a great time to reflect on some hard truths as you finalise your strategies for 2025. So here is hard truth number one: Accountability is not optional - it's the foundation of business relationships.

Speaking as both an investor and former operator, I've seen both sides of this equation. I have walked in your shoes before as an entrepreneur and I understand the pressures and challenges of building a company... However, I've noticed a concerning trend in the ecosystem: Some founders expecting "continued support" while dodging basic accountability. This mindset is not just problematic for you and your business - it is destructive to the entire startup #ecosystem.

Accountability is critical to maintaining trust and ensuring sustainable growth. Here's the reality check in case you did not know- all of us in the ecosystem are accountable to someone else. Every type of financing comes with accountability:

  • Equity investors must answer to their own investors (LPs)
  • Banks and debt funders answer to regulators and depositors
  • Grant makers are accountable to their boards and donors
  • Even your own customers as a key source of financing hold businesses accountable for the quality of their products and services through their purchasing decisions

Regular updates, transparent communication and honest reporting are not optional - they are a must! Your backers want to hear from you not only when it's going well but also, and even more importantly, when it is not! They want to support you but won't know how to if you 'ghost' them (disappear).

With capital becoming increasingly scarce (Africa saw a 25% drop in VC investments in 2024) - understand that irresponsible behaviour doesn't just affect you. It impacts future entrepreneurs who will face higher scrutiny because investors become more risk-averse. Our startup ecosystem is still in its infancy. We all need to work together to maintain our credibility. Let us - investors, entrepreneurs, ecosystem support players e.t.c- all be each other's keepers. Trust is our most valuable currency - let's not devalue it.

Wishing you an accountable 2025.


Claire Alexander

*Director at Africa Scotland Business Network & Firecracker Marketing Events *Host @theparallelspodcast *Global Scot *Global Celt *Vice Chair of Board for RSA NGO *Jiu-jitsu Blue Belt.??-60kg ADCC Jiujitsu Africa Champs

1 个月

My word, I've never been an investee before (we've built everything ourselves through sales and generating our own cash flow) so I never realised that this is what happens!

Claudia Castellanos

Co-founder and CEO at Black Mamba Foods Impact entrepreneur and food rebel Entrepreneurship and Marketing lecturer Planet, people, prosperity.

1 个月

Here’s to more accountability from all stakeholders, even when it is for hard conversations and uncomfortable discussions! I am a conflict avoider at heart ?? and sometimes this is difficult for me, but I do understand the importance of this and glad that I get a reminder to shake things up ??

Damilola Thompson, FRSA

Venture Capital || Africa, UAE, USA & LatAm || Tech & Innovation || Faith Driven Entrepreneur & Investor|| Ecosystem Builder

1 个月

Lelemba Phiri Say it again and again and again!! I absolutely concur with everything you said. If you take money from other people, your accountability to them is non-negotiable, and it has nothing to do with your rights.

100% ! On the same note...investors also have to be accountable. Accountable for continually dragging on investment processes with startups. Accountable for being transparent about whether they actually have funds to invest. Accountable on the founders time they are taking during their investment process when most early stage companies have very small teams that are trying to actually generate revenue as well and grow their businesses organically. I agree as always Lelemba Phiri but also... I could write novels on the other side of the coin as well.

Maipe Sando

Business Liason Officer @ It's in Nottingham | Retail Sector Expertise

1 个月

Well said!

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