UWC professor: Why do African entrepreneurs fail despite leading in start-ups?

Professor Robertson Tengeh at his inaugural lecture at the University of the Western Cape. Photo: Shelley Christians/UWC

UWC professor: Why do African entrepreneurs fail despite leading in start-ups?

Professor Robertson Tengeh at his inaugural lecture at the University of the Western Cape. Photo: Shelley Christians/UWC

Professor Robertson Tengeh of the University of the Western Cape’s (UWC) Department of Management and Entrepreneurship has called for a fundamental rethink of how entrepreneurship support is designed. African entrepreneurs are being failed by systems built for someone else, he argued.

Tengeh, a National Research Foundation (NRF)-rated researcher, delivered his inaugural lecture on 15 September 2026, drawing on two decades of research into African immigrant entrepreneurship in South Africa. He introduced a new framework focused on entrepreneurship within African contexts.

street vendor
Tengeh said Africa has the world’s highest rate of entrepreneurial activity, yet also the highest business failure rate.

He said Africa has the world’s highest rate of entrepreneurial activity, yet also the highest business failure rate. The problem, he argued, is not a lack of determination among entrepreneurs but the mismatch between the support systems around them and the realities they operate in.

“We are diagnosing the wrong problem and therefore expecting outcomes that are unlikely to produce sustainable businesses,” Tengeh said. “They fail not because of a lack of optimism or determination but because support systems around them were designed for someone else.”

Western theory, African reality

Tengeh challenged the academic community to develop theories grounded in African contexts, saying that a reliance on imported frameworks leads to interventions that do not address the actual barriers faced by entrepreneurs.

“A misdiagnosis of the core issues can lead to ineffective interventions rather than addressing the actual barriers faced by entrepreneurs.”

He pointed to the apparent accessibility of business support services as an example. While programmes and loans may appear available on paper, many entrepreneurs cannot meet basic eligibility requirements. A South African identification document effectively excludes non-South Africans, and having no credit history may shut out the informal township entrepreneur.

In an interview before the lecture, Tengeh said current approaches tend to focus on individual entrepreneurs rather than the support systems and environments in which they operate. “Redirecting energy towards support systems would yield better resilience outcomes,” he said.

Beyond funding

Tengeh argued that funding is only one of several constraints. Mentorship, access to business networks, knowledge of supply chains and the development of a customer base are equally important for business survival and long-term sustainability.

He presented the West African apprenticeship system as a model worth examining. Apprentices work for three years, gaining practical knowledge of different aspects of the business, including supply chain management. Upon completion, the mentor or business owner establishes a similar business for the apprentice, provides goods on credit, introduces them to relevant networks and in some cases allows them to take some customers.

“Real-world entrepreneurial knowledge cannot be taught in traditional business schools, as the critical skills are learned on the job,” Tengeh said. He called for a shift towards experiential training and the involvement of practising entrepreneurs in teaching.

Properly designed interventions aligned with the profiles and circumstances of South African youth entrepreneurs could increase business start-ups, reduce failure rates and support the transition from survival to sustainability, he said. This could in turn contribute to job creation, increased incomes, a broader tax base and improved provision of public amenities to less privileged communities.

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From street trading to professor

Tengeh’s own journey informs his research. He left Cameroon in the late 1990s intending to find employment or establish a business in South Africa. With a Bachelor of Science degree in Economics, he initially believed he had the qualifications to secure work, but found the labour market difficult to enter.

He experienced many of the challenges faced by other foreign-national entrepreneurs, including difficulties with documentation, limited access to banking services and restricted access to finance.

“My first job here was street trading, thanks to my host who supplied me with the items to sell,” he recalled. “I was raised by entrepreneurial parents, and this exposed me to business activities from an early age, including during school holidays. The experience taught me vital life skills that later came in handy.”

He decided to improve his skills and registered for a course in Entrepreneurship at the neighbouring Cape Peninsula University of Technology (CPUT), where he completed his Master’s and PhD. He also taught in the Graphic Design, Entrepreneurship and Public Management departments before taking up his position at UWC.

ALSO READ: UWC programme helps unemployed youth build businesses and find jobs 

If he had R1 billion

Asked what he would do with R1 billion to solve one problem related to his research, Tengeh said he would use it to help develop and influence policies that guide interventions designed around the actual profile of entrepreneurs and young people in South Africa.

“We cannot design for people we don’t know,” he said. “We must know who they are, understand what they need, and engage them before we design.”

He said he would set up an entrepreneurial mentorship and apprenticeship programme, funding experienced and credible entrepreneurs to work with mentees over a sustained period. The aim would be to ensure that young people gain not only financial support but also access to guidance, knowledge, networks and practical experience.

“Once businesses become sustainable, they create jobs and income, not only for the owners but for others too,” he said. “Ultimately, this is how we move from crisis to confidence: by designing interventions that fit the people they are meant to serve.”

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