IBM. Coca-Cola. Ford. Nestlé. Pepsi. General Electric. Procter & Gamble. Bacardi.

These names likely resonate with you—not just because they are large global businesses, but because they’ve stood the test of time. Each of them has existed for over 100 years, thriving long after their founders passed on.

In contrast, African businesses often struggle to survive beyond the first generation. While there are exceptions, it’s not common to find African brands or businesses that last beyond their founders. Why is this the case?

Here are *five critical reasons why many African businesses fail to endure:

1. Poor Succession Planning
Planning for the future is uncomfortable for many, yet it’s essential. Succession planning should begin early to ensure the business can thrive without its founder. Whether the successor is a family member, partner, or employee, grooming them with the right skills, knowledge, and passion is critical.

2. Small Thinking
Many businesses start small but stay small. Founders often fail to think big or explore the potential of their products and services on a larger scale. The truth is, what starts as a small neighborhood product can become a global brand—with the right vision and ambition.

3. Lack of Structure and Systems
Without clear structures and business systems, businesses often rely too heavily on the founder. When they’re unavailable, everything falls apart. Policies, procedures, and proper record-keeping are crucial for continuity and smooth operations.
4. Resistance to Change
Adaptability is key to survival. Many businesses fail to recognize trends, disruptions, or innovations that could affect their operations. To thrive, entrepreneurs must stay informed and embrace change proactively.

5. A ‘Lifestyle’ Mentality
Too often, business success is seen as an opportunity to upgrade lifestyles—lavish spending, fancy cars, and extravagant displays of wealth. This mindset diverts resources from the business and sends the wrong signals to employees and potential successors.

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The Way Forward

Africa has the potential to create its own IBMs, Coca-Colas, and Nikes. But this won’t happen by chance. We need deliberate efforts to think big, embrace structure, and plan for the future.

Our continent is rich in unique products and services with global potential. Let’s rise to the challenge and build businesses that outlive us and inspire generations to come.