Returning genetic research results in neurodevelopmental disorders: report and review
Report on Barriers Faced by Returning ... - propel.africa · EXECUTIVE SUMMARY OUR APPROACH KEY...
Transcript of Report on Barriers Faced by Returning ... - propel.africa · EXECUTIVE SUMMARY OUR APPROACH KEY...
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JULY 2017
Copyright © 2019 Propel Africa by Hildeed Global Ltd
JULY 2019
EARLY STAGE AFRICAN TECH VENTURES
A REPORT ON BARRIERS FACED BY RETURNING GLOBAL AFRICAN TALENT & ENTREPRENUERS
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It has been proven that lack of investment hasn’t proved to
be the only main challenge in many African startups but its
lack of good talent and business support.”
- TECHCRUNCH (2019)
“
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EXECUTIVE SUMMARY
OUR APPROACH
KEY FINDINGS
Research Interview ReportDesk Research on African
founders and initiatives focusing on diaspora talent
Qualitative interviews with current and potential
founders (in/outside Africa)
Collating and synthesizingthe findings
Information & Awareness Funding Exits Solutions
• Information scarcity regarding markets and opportunities…
• Lack of supportive startup programs catered to future African and/or diaspora technology founders
• Lack of African role models…
• Global diaspora entrepreneurs could increase investment flows
• Guarded stewardship is throttling growth
• Absence of funding dedicate to diasporas
• Exits increase confidence in the region and in African talent
• Exits intensifies interest in the African region
• Support of platforms that disseminate knowledge about Africa’s potential
• Launching programs that target diaspora talent
• Funding of exceptional diaspora talent
We explored issues and barriers among prospective and current African diaspora entrepreneursGlobal African diaspora talent, who are central to driving innovation and job creation, are missing out on this decade’s tech-entrepreneurship boom in Africa. This is due to myriad of issues they face when starting a new technology venture
SUMMARY
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DEMOGRAPH OF INTERVIEWEES
METHODOLOGY→ The interviews were one-to-one with
African youth talent living abroad
→ All the interviewees have shown greatinterested in setting up businessesback home
→ We also interviewed successfulAfrican founders who have returnedand are running their startups
→ Tailored topic guides were used as astarting point for the discussions:
§ What inspires you to go back to launch a business?
§ Challenges faced by founders who want to launch their ideas
§ Policy recommendations
§ Funding issues and potential solutions
UK Holland Sweden USA Denmark
INTERVIEWEES
1. Suweidu Jehanfo (UK ⇢ Ghana)Project Manager, Transpo Group
2. Abu Bakar Ismail (Netherlands ⇢ Kenya)Founder, Rio Reality
3. Dr. Hakim Abdi (United States ⇢ Somalia)Postdoctoral Researcher, Lund University
4. AI Ibrahim (Denmark ⇢ Ethiopia)Senior Designer, VELUX
+ 4 Candidates*
METHODOLOGY
Migrant Countries
Origin Countries
Ghana Kenya Somalia Ethiopia
METHODOLOGYThrough qualitative research, we took a closer look at what would allure diaspora entrepreneursEspecially talent with global skillsets to launch their ideas and businesses in their countries of origin
*Names withheld on request
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IMPORTANCE OF GLOBAL DIASPORA TALENT POOLIt has been noted that diaspora migrants contribute to development of their countries of originSeveral authors have written about how migrants contribute to the economic development of their countries of origin. Trade, technology and capital formation is facilitated by those with higher degrees of education – Plaza & Ratha (2011)
→ Diasporas increase investment flows between sendingand receiving countries because they possess importantinformation that can help identify investmentopportunities and facilitate compliance with regulatoryrequirements (Plaza & Ratha, 2011)
→ Diaspora migrants facilitate bilateral trade and investment between host and sources countries because they help to overcome information asymmetries and other market imperfections (Black& Others 2004)
→ Members of diasporas are more willing to take on risks back home because they are better placed to evaluate investment opportunities
→ Studies have shown significant relationshipbetween diaspora migrants (particularly skilledones) and investment inflows to origin countries(Kluger & Rapaport, 2005)
→ A way to encourage private investments is to tapthe Africa diaspora to alleviate foreign investorconcerns and risk preception (Plaza & Ratha,2011)
→ Diasporas are an important source ofinnovation, technology transfer and skillsdevelopment
LITERATURE
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INFORMATION & AWARENESSInterviewees highlighted the lack of information on the opportunities in Africa that diaspora entrepreneurs crucially need to help them with decision-makingAlthough there is significant coverage on African startups launching and/or getting funded in Africa, what still lacks is valuable information on distinct areas (sectors etc.) that prospective founders can match their business ideas with
KEY FINDINGS
§ Information scarcity regarding market sizes and opportunities in African sectors that appeal to technology startups
§ Lack of startup support programs catered to potential African and diaspora technology founders
§ Locating and promoting African role models advocating for Africa as a fertile soil for future founders
§ Information scarcity regarding market sizes and opportunities in African sectors that appeal to technology startups
→ Interviewees highlighted the scarce availability of useful information on African markets, especially on the sizes of the markets that they would like to enter. Without such information, diaspora and local entrepreneurs would be wasting a lot of time and money working on the wrong products or technology services
→ Although there are avenues to source such information, the reliable (and up-to-date) ones are sold at a steep premium by private outlets and research firms
§ Lack of startup support programs catered to potential African and diaspora technology founders
→ Interviewees noted that a good number program funding recipients are dominated by Non-African platforms that apply concepts proven to work outside Africa
→ This needs to change as global Africans are well suited to lead such initiatives and platforms that unlock talent among African youth
§ Locating and promoting African role models advocating for Africa as a fertile soil for future founders
→ The evangelism of technopreneurship is neither dominated by Africa-focused platforms nor African founders. According to interview participants, this has to change, although they acknowledged the significance of major tech companies (e.g Ali Baba, Google etc) and their contributions to some African ecosystems
→ It has also been indicated that there are many “unsung heroes” within the midst of diasporas that returned to their origin countries and started new ventures. Such African talent need to be located, highlighted and celebrated
KEY FINDINGS
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FUNDING KEY FINDINGS
Access to funding is a major issue for startups and young founders, but diasporas see lightThe propensity of returning migrants getting funded over locally based entrepreneurs is higher. Due to their global skillsets and low risk profiles, talented Africans returning to launch their ideas at home have better chances of securing funds
KEY FINDINGS
§ Diaspora Entrepreneurs could increase investment flows
§ Guarded stewardships throttling growth
§ Absence of funding dedicate to diasporas
§ Diasporas entrepreneurs could increase investment flows
→ Interviewees highlighted that most of the funds ignore the fact that globally talented diasporas could be an important source of quality talent
→ This is because these talents possess information and skills that identify investment opportunities, which in effect increases investments between sending and receiving countries
§ Guarded stewardship towards poorer African countries is throttling growth
→ As mentioned earlier, interviewees noted although the attention and support by major tech companies is welcomed, they’ve highlighted that major tech companies would rather not engage in some African countries, especially those facing extreme challenges. This a huge disadvantage, especially for diaspora talent that want to make a difference
→ Furthermore, such reluctance affects the perception of other notable actors (i.e. funders). As noted by one interviewee: ”VCs are usually the last to enter the room. So if there is no progress in developing vibrant startup ecosystems and partnerships, other players won’t follow”
§ Absence of funding dedicated to diasporas
→ Interview participants took an exceptional note to the lack of availability of funds dedicated to diaspora talent
→ They believe that, given their connection to their home country and the investing country, they are in a prime position to launch and their entrepreneurial ventures
→ Interviewees also felt that they can contribute to the decrease of information asymmetries and imperfections that plague venture investor’s confidence whenever exploring African markets
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EXITSAbsence of successful exits hamper interest among diaspora in starting new ventures back homeInterviewees indicated that with more success stories (i.e. Series A+ funding, Exits etc) in Africa, investments increase. Which also entail contributions towards ecosystem growth and confidence among diaspora talent overseas
KEY FINDINGS
§ Exits increase confidence in the region and in African talent
§ Exits intensifies interest in the African region
§ Exits increase confidence in the region and among African diaspora talent
→ Participants stressed that more successful exits by Africa-based startups will act as catalysts to more founders choosing Africa. This will also rubber stamp Africa’s place as a top destination for returning citizens
→ Interviewees also indicated that, as global talent, they usually hold other region’s exits as benchmark (e.g. Europe, US, South Asia), which influences their motivation to launch their ideas in their respective countries of origin
§ Exits intensifies development and investment
→ Given the herd mentality of the investment community, major startup successes by diaspora founders would also boost liquidity for similar class of talent
→ Interviewees emphasized that that all it takes is a few success stories to create a snowball effect which will contribute to a wave of new returnees wanting to become the next billionaires of Africa
KEY FINDINGS
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SOLUTIONS KEY FIDINGS
More support programs that promote Africa as a fertile ground for young diasporas to launch ideasInterviewees suggested that more platforms, such as Propel, are needed to support Global Africans who want to return and launch their ideas that focus on certain verticals
KEYSUGGESTIONS
§ Support for platforms that disseminate knowledge about Africa’s potential
§ Launching programs that target diaspora talent
§ Funding of exceptional diaspora talent
§ Support of platforms that disseminate knowledge about Africa’s potential
→ According to Global Entrepreneurship Monitor1, confident people who have the skills to start a business are four to six times more likely to do so
→ Interviewees have emphasized that they feel they are in the prime position to contribute to the economies of their origin countries
→ And in order to achieve that, they have highlighted the importance of being equipped with the right information on markets, access to finance and other essential elements that a viable business idea needs to succeed
→ As entrepreneurship is a key factor for development in emerging African markets, returning diaspora talent accelerate innovation by introducing new competitors to existing structures
§ Launching programs that target diaspora talent
→ Diaspora who have lived most of their lives outside their countries of origin, come back with the most innovative, high-growth ideas. This is especially the case with our interview participants, who are young men and women of youth, that see themselves as “outside of the box thinkers”
→ Unfortunately, diaspora interviewees have found it hard to compete in existing startup programs. A reason being that such programs don’t guide them towards Africa. They also agreed that more programs that focus on top African diaspora talent who want launch their business ideas in their countries of origin must be made available
§ Funding of exceptional diaspora talent
→ Funders have already highlighted that they believe, as diaspora entrepreneurs are part of two communities, they lower the risk profile for funders (Plaza & Ratha, 2011)
→ Hence, vital seed and growth funding opportunities should be availed to top-caliber African talent wishing to launch their ideas in Africa
SOLUTIONS
1. Global Entrepreneurship Monitor & Youth Business International (2013)
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AFRICA’S TECH STARTUP MAP by
CLEANTECH
FINTECH AGRITECH EDTECHSOCIAL IMPACT
E-COMMERCE
OTH
ERS
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REFERENCES REFERENCES
§ The World Bank (2011) – Diaspora for Development Africa
§ Centre of Migration Research (2003) - Migration, Return and SME Development in Ghana: A Route out of Poverty?
§ Geofrum (2006) – Migration, Remittances and Regional Development in Southern Morocco
§ Center of Economic Studies (2005) – Skilled Emigration, Business Networks, and Foreign Direct Investment”
§ Weetracker (2019) – African Startups & VC Ecosystem Report
§ World Economic Forum (2016) - A brief overview of Africa’s tech industry – and 7 predictions for its future
§ Techcrunch (2018) – African startup investments turn to fintech
§ Ventureburn (2019) – A new $100M fund dedicated to African startups
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“A society that cuts itself from its youth severs its lifeline, but a society that
engages their interest, enlists their talents and liberates their energies
brings hopes to the entire world.”— Kofi Annan
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ABOUT PROPEL
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Propel is a platform for talented global African graduates and African Diaspora to become successful technology entrepreneurs in their respective homelands in Africa
The aim is to reduce Brain Drain by shaping a new generation of technology entrepreneurs applying, in times of technological change, to solve their society’s challenges and take advantage of new opportunities in their respective countries
With the UK as a start, we aim to build a platform model for talented Africans in different parts of the world
WHO WE ARE ABOUT US
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GLOBALEXPERIENCE
INFLUENTIAL AFRICAN NETWORK
LOCAL KNOW-HOW
SUBJECT MATTER EXPERTS
We are betting on the long-term
The talent overseas diaspora Africans currently have is remarkable. We are committed to reaching out and connecting to them by placing Propel at the forefront
of their entrepreneurial growth
With their multi-disciplined global experience and extensive local knowledge of African geopolitical landscapes, we are enthusiastic about nurturing
such candidates
We are ready to bring this global experience to Africa and propel them to success!
FUTURE AFRICANENTREPENEURS
OUR AIMOUR AIM
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Diaspora, Youth Graduate Techies & Innovators in Leading Universities & Hubs
Global African Women Entrepreneurs
Age Group: 18 - 45 Age Group: 18 - 45
Our primary targets are African youth and women graduatesWe believe that Africa’s best prospects for sustainable growth lie in its ability to tap into its
vast pool of quality talent currently outside the continent
1Global Entrepreneurship Monitor
TARGETGROUPSTARGET GROUPS
Among the 10 countries with the highest number of start-ups in the entire world, five are in Africa1. At PROPEL, as its our mission and within our core values, we recognize the positive role
women and men are playing in creating opportunities for themselves and their communities
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OUR MODEL THAT DRIVES INNOVATION MODEL
Global African talent are an important source of innovative solutions to Africa’s issues
To address the Africa’s gap to solving issues pertaining to availability of critical services, resources must be devoted to helping global African talents launch their startups back home. Majority of high income OECD countries are becoming more interested in working with the diasporas residing in their countries and..
→ Propel aims to maximize the impact of such talents available amongst African youth within diaspora in developed countries
→ Deploy resources to support African founders to bring locally-relevant, innovative products to their home markets
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SPACESFUNDING
Matching Grant Funding Connecting Talent with African hubs
BOOST
Promoting African Talent
PLATFORMPLATFORM CORE FUNCTIONSThrough our platform, we will be the driving force in enabling the creative hubs and ecosystems
For more info, visit: www.propel.africa/platform
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Our platform aspires to proliferate solutions to critical services by supporting African diaspora youth and graduates who aspire to become technology startup founders in their respective homelands in Africa
We aim to support and facilitate investment in founders (i.e Global African Talents) who will launch their startups in Africa, and that are seeking to leverage new technologies to dramatically lower the cost of critical services in the following areas*:
→ African Trade (Logistics, E-Commerce)→ Agribusiness and technologies (AgriTech)→ Financial services and technologies (FinTech)→ Renewable Energy (CleanTech)→ Education (EduTech)→ Healthcare (HealthTech)
FOCUSOUR FOCUS
*Areas of focus are indicative and aligned to UN’s Sustainable Development Goals
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LIKE WHAT WE DO?INTERESTED IN WORKING WITH ORSUPPORTING US?
Please reach out:Abdulrahman (AR) [email protected]
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Propel Africawww.propel.africa
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