Entrepreneurs have a unique psyche, and they face unique pressures. They are highly motivated and love what they do, but there’s no question that the journey of building a startup is grueling. The pace is fast, the stress is intense and the hours are long, and founders carry a heavy weight of responsibility on their shoulders — for themselves and their families, employees, customers and investors. That pressure takes a mental, emotional and physical toll on founders, which can affect their business outcomes if they don’t make their own wellbeing a priority.
Flourish Ventures, where I work as the Director of Strategy and Insights, is an early-stage fintech venture capital firm that invests in entrepreneurs who are building companies to disrupt legacy structures and shape the financial system for the better. We believe that fostering a culture of wellbeing ensures that founders remain energized, resilient, innovative and capable of steering their companies toward long-term success and sustainability. We also believe that supporting the wellbeing of our founders is a strategic imperative for ourselves as investors — and one that deserves fuller discussion.
However, the topic has not been given the attention it deserves, and there’s a need for more data to paint the full picture, understand how to move forward and spur much-needed conversation. As a first step, Flourish recently conducted the first large-scale survey of entrepreneurs’ journey and wellbeing in Africa, including nearly 200 startup founders across 13 African countries. I designed the survey in partnership with Flourish’s investment team, who know our founders well. As part of the process, I also interviewed more than a dozen founders, investors and other ecosystem players to learn directly about their experiences in their own words, building on first-hand experience and learnings from Flourish’s portfolio companies.
Founder wellbeing is a timely topic across the continent, where entrepreneurs face a particularly difficult macroeconomic environment. But the findings reflect what we’ve learned from similar studies with entrepreneurs in other regions. This suggests that while there are regional distinctions, the underlying principles are universal: The vast majority of founders are passionate about their work, but it impacts their wellbeing. Although they have coping mechanisms to help navigate and overcome the challenges they face, founders need to understand that they are not alone, and that fostering relationships across the ecosystem can be a powerful way to build resilience.
Assessing the Wellbeing of African Founders
At a high level, this landmark survey revealed that 81% of African entrepreneurs enjoy the journey of being a founder, and nearly two-thirds indicated they would rather start another company than take a job if their business fails. “Entrepreneurs are passionate about solving big problems,” said Belal El-Megharbel, co-founder and CEO of MaxAB, who contributed to this research. “That sense of purpose is what motivates us and pushes us to keep going. You have to be truly mission-driven to withstand the stress of the journey and prevent burnout along the way.”
But that doesn’t mean the startup grind doesn’t take a toll. Founders commonly reported feeling lonely, stressed and burned out, with 60% grappling with anxiety, 58% high stress, 52% exhaustion and burnout, and 20% depression. Interestingly, even high-performing founders who said their startups were “thriving” reported an impact on their wellbeing — no one is immune.
The survey also revealed that entrepreneurs’ main sources of stress stem from the external macroeconomic environment. Global economic shifts and local volatility have created challenging fundraising conditions in Africa and elsewhere, and this has ratcheted up the pressure on founders and their teams. For companies faced with an unpredictable landscape, focusing on wellbeing is even more critical.
The survey findings showed that African entrepreneurs are aware that they must develop coping mechanisms to keep themselves moving forward, and the most widespread techniques are exercise (59%), sleep (45%) and healthy eating (42%). Both sleep and healthy eating are highly beneficial — correlating with more than 15% higher wellbeing outcomes on average for survey respondents — but they are most effective when complemented by strong personal relationships. Relying on other people is vital for coping with stress, and the founders who are open about what they are going through are better equipped to handle the demands of their roles. That’s why professional support — from a therapist or coach — can be a much-needed addition to a founder’s direct personal network. According to Tayo Oviosu, founder and CEO of Paga and a contributor to this research, “A professional coach is an invaluable yet often overlooked asset. Even the world’s best athletes rely on coaches — why wouldn’t we?”
However, fostering this type of supportive relationship can be a challenge, because the startup scene is competitive, and founders tend to be reluctant to share their struggles or display vulnerability and weakness. Fewer than half said they speak to their fellow startup founders about their stress, and only 25% seek support from a professional coach or therapist. Too few founders break their silence, which highlights the urgent need to cultivate an atmosphere where they have trusted support they can turn to. While family and friends may be able to lend an ear, founders have much to gain from talking with people who genuinely understand what they are going through. Therapists or professional coaches who have been in their position before are often best equipped to serve as a sounding board, offer tactical advice and provide targeted expertise about how to cope when things get tough.
How investors can better support founder wellbeing
Investors can also play a role in supporting founder wellbeing, yet our survey found that they add to founder stress rather than alleviating it. According to the survey, only 17% of African founders are completely comfortable having open conversations with their investors, and only 11% are sure their investors care about their wellbeing.
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 two-thirds said they wanted investors to get to know them as people and pay attention to the challenges they face. These responses indicate that there’s more open dialogue needed between founders and investors to bridge the trust gap.
When we started this research a year ago, we did it with curiosity and an open mind. The findings have confirmed to us that founder wellbeing is an important contributor to portfolio companies’ success. As a venture capital firm, we want the entrepreneurs in our portfolio to innovate, succeed, scale and build thriving businesses. Good financial stewardship requires building trust and open dialogue to achieve the best business outcomes. This does not mean that we are not also holding founders accountable; rather, we are embracing an approach that recognizes how wellbeing and success are intertwined.
The data we’ve acquired from this research is powerful, but it only gets us so far. There is no clear, easy or one-size-fits-all solution to the unique pressures facing entrepreneurs: To move forward, founders, investors and other stakeholders must gain a better grasp of these challenges. We hope that shining a light on founder experiences and conducting research about their wellbeing can serve as a starting point, encouraging others to share ideas, build awareness, and contribute to greater openness and discussion. Increasing our focus on founder wellbeing, in Africa and beyond, will ultimately help build a stronger global venture capital ecosystem.
Stella Klemperer is the Director of Strategy and Insights at Flourish Ventures.
Photo courtesy of Tima Miroshnichenko.
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