The collapse of several high-profile local and international startups this year – including Zando, Ellies and the US and Canada’s Bed, Bath and Beyond – denotes how important it is for business owners to pay close attention to business performance.
From economic instability and rising inflation to the wide adoption of AI in an increasingly competitive digital playing field – 2024 was full of lessons for the astute entrepreneur.
Here are five of the biggest business lessons to take into 2025:
Adapt or die
During the 2024 African Entrepreneurs Summit, Rebecca Enonchong, a tech entrepreneur from Cameroon, emphasised the need for adaptability, especially in Africa where markets are unpredictable and diverse. She highlighted how her software company, AppsTech – built in an environment where access to technology was limited – has a business model that adapts to different market requirements.
While we may have some good news on the decreasing inflation and interest rates, this year South African businesses were forced to adapt to ongoing economic instability under the uncertainty of inflation and energy challenges.
They continue to see both positive and negative politically fuelled impacts on business confidence from Government of National Union operations to Donald Trump’s re-election and post-election unrest in Mozambique. Entrepreneurs must remain flexible enough to pivot when necessary and adapt approaches to diverse and evolving conditions.
Invest in people and technology
Team and community investment forms part of the cornerstone of long-term success. At Business Partners Limited, we foster entrepreneurial success through mentorship and knowledge support initiatives because we recognise the immeasurable value in providing guidance for scaling businesses effectively.
Technology is a powerful tool for innovation and solving real-world problems. The rapid adoption of AI tools like ChatGPT and Gemini underscore how embracing technology doesn’t replace human capital, but can enhance operations and further unlock scalability.
South African fintechs like Yoco, for example, scaled significantly this year by leveraging AI and blockchain to serve SMEs. After receiving $16 million (R286m) in 2018 in a Series B round of funding, the company used the capital injection to invest in cutting-edge technology and attract more investment. In 2022, they were able to acquire Nona Digital – the leading fintech and Web3 software development agency in Africa – along with their team of highly specialised fintech and technology professionals.
The cloud-based fintech can now provide an AI-powered back-end system that offers their customers targeted business intelligence including cashflow projections – a strategic advantage for the company and the SMEs they serve.
Focus on resilience and never stop learning
There were businesses that invested in renewable energy solutions to keep operations running despite the energy crisis. This reveals the value of resilience through the practicality of crisis-management strategies and the principle of spending money to make money.
The founder of Bathu Shoes, Theo Baloyi, has shared before how resilience helped his business recover after global market instability caused supply chain disruptions. It’s important to strive for resilience in operations wherever possible.
From the starting line, it should also be a push for continuous learning, especially from competitors and critics. The African Leadership University’s 2024 report revealed the correlation between lifelong learning programmes for entrepreneurs and increased business performance in South Africa.
Platforms like Coursera, Udemy and LinkedIn Learning also continue to grow as professionals seek to future-proof their careers by upskilling – helping their organisation stay relevant and profitable during this tech evolution.
Start with what you have and pursue sustainability
Grassroots innovation and bootstrapping are nothing to be frowned upon. This was evident with the success stories of businesses that started with minimal resources emerging from the latest Business Report column.
Esethu Cenga, the co-founder of Rewoven, aimed to create a circular economy by diverting textile waste from landfills and instead transforming these fabrics into usable materials and supplying them back to the fashion industry. Business owners should recognise the value and significant potential for growth when available resources are paired with vision and incremental steps.
Cenga’s business also responds to the growing demand for eco-friendly products and services. This trend was highlighted at the African Business Sustainability Forum in 2024 indicating a growing ‘green’ consumer pool and that customers are looking for options that are sustainable. Therefore, going into 2025, it is also important to prioritise social and environmental impact, wherever possible.
Do your due diligence
Thorough research is a non-negotiable for any entrepreneur. Insufficient market analysis has led to the downfall of several South African startups in 2024, often due to poor understanding of their target markets or unrealistic revenue projections. Comprehensive due diligence on market viability, competition, and customer needs is critical before launching or expanding a business.
A sharp focus on understanding customers’ pain points also emerged as a success factor. At the 2024 SME Growth Conference, case studies showed that businesses investing in market research and competitor analysis were better positioned to identify gaps and deliver tailored solutions. This research-driven approach not only mitigates risk but also builds trust and credibility among stakeholders.
These takeouts will set businesses up for a strong 2025 – to make the most of the opportunities in the relevant market, embrace change and challenges and to feel prepared for a great year ahead.
Ben Bierman is the managing director of Business Partners
BUSINESS REPORT