society
Why Businesses Fail in South Africa. By Ekos Akpokabayen
Why Businesses Fail in South Africa.
By Ekos Akpokabayen
South Africa, like many emerging markets, experiences a high rate of business failure, particularly among small and medium-sized enterprises (SMEs). Statistics from the Small Enterprise Development Agency (SEDA) and the Global Entrepreneurship Monitor consistently reveal that over 70% of small businesses fail within the first two years of operation. This trend is concerning given that SMEs are vital contributors to economic growth, job creation, and innovation.
As a finance professional and Chief Investment Officer at Ovid Capita, I have closely observed the structural and operational challenges facing businesses in South Africa. Drawing from both analytical frameworks and on-the-ground experience, I will explore the critical reasons businesses fail and offer pragmatic advice to entrepreneurs aspiring to build resilient and sustainable enterprises.
1. Lack of Market Understanding and Strategic Positioning
One of the foundational causes of business failure is inadequate market research and poor strategic positioning. Too often, entrepreneurs are guided by passion, anecdotal evidence, or fleeting market trends rather than grounded, data-driven insights. While enthusiasm is essential, it must be paired with a thorough understanding of customer needs, behavioral patterns, and competitive dynamics.
A robust market analysis should answer essential questions: Who are our customers? What do they value? Who else is serving them, and how can we do better? Unfortunately, many business owners overestimate demand or misjudge pricing sensitivities, resulting in products or services that fail to gain traction.
To thrive, entrepreneurs must prioritize feasibility studies, competitive analysis, and customer validation exercises. Without this due diligence, they risk entering saturated markets, pricing incorrectly, or offering products with no long-term demand.
2. Weak Financial Management and Planning
Financial mismanagement remains one of the most persistent causes of business collapse. Many entrepreneurs lack fundamental financial literacy—unable to distinguish between profit and cash flow, or between gross margins and net income. This lack of understanding leads to poor decision-making, uncontrolled spending, and an inability to budget or forecast.
A successful business must implement sound accounting practices, establish clear financial controls, and adopt budgeting processes that align with strategic objectives. Entrepreneurs should leverage modern accounting software and, where possible, seek guidance from professional advisors or financial consultants.
Moreover, understanding unit economics—how much it costs to acquire a customer versus the lifetime value of that customer—is critical. Without these insights, even high-revenue businesses can fail if their cost structures are inefficient or unsustainable.
3. Cash Flow Constraints and Insufficient Capitalization
Cash flow—the lifeblood of any enterprise—is often misunderstood. Many business owners confuse profitability with liquidity, only to find themselves unable to cover operational expenses such as rent, payroll, or inventory.
This issue is compounded by a failure to raise capital at the right time. In South Africa’s volatile economic climate, unforeseen disruptions—such as load shedding, regulatory changes, or currency volatility—can quickly derail undercapitalized businesses.
Entrepreneurs must adopt a proactive approach to financial planning that accounts for seasonal fluctuations, delayed client payments, and potential economic shocks. Building a capital buffer and securing access to credit or investment capital can significantly increase a business’s resilience.
4. Underestimating the Competitive Landscape
South Africa’s business environment is dynamic and competitive. Many new entrants mistakenly believe their offerings are unique or that existing competitors are unsophisticated. This assumption is often misguided.
Competitor analysis is not a one-time event—it should be an ongoing process. Understanding the pricing models, service delivery mechanisms, customer retention strategies, and marketing approaches of competitors can offer valuable insights for differentiation and strategic agility.
Those who ignore competition risk being undercut on price, outpaced in innovation, or simply forgotten by consumers in a saturated market.
5. Inexperience in Hiring and Managing Talent
Even the most innovative ideas require strong execution—and that depends heavily on people. Unfortunately, many entrepreneurs lack experience in human resource management. Hiring based on convenience, cost, or personal relationships instead of merit and cultural fit can lead to operational inefficiencies and internal discord.
Effective recruitment is not just about filling roles; it’s about building a team that shares the vision, values, and ambition of the enterprise. Furthermore, poor leadership, lack of delegation, and micro-management often demotivate high-performing employees, leading to high turnover and loss of institutional knowledge.
Investing in people—through careful recruitment, team building, and leadership development—is essential to business sustainability.
6. Neglect of Employee Training and Development
In a fast-evolving economic landscape, businesses must constantly adapt to changes in technology, consumer behavior, and regulatory frameworks. Yet, employee training is often seen as a cost rather than an investment.
This mindset is dangerous. Inadequately trained staff can negatively impact customer satisfaction, productivity, and compliance. Conversely, continuous professional development fosters innovation, efficiency, and loyalty.
Entrepreneurs must create a culture of learning. This can be done through formal training programs, peer learning, mentorship initiatives, and access to industry certifications. Knowledge is a competitive advantage—and businesses that invest in human capital tend to outperform their peers.
7. Failure to Build Strategic Networks and Partnerships
In South Africa, many entrepreneurs operate in isolation. They overlook the value of business networks, industry associations, and collaborative ecosystems. However, successful businesses are rarely built in a vacuum.
Networking provides access to partnerships, funding opportunities, mentorship, and market intelligence. Engaging with other business owners, attending industry conferences, or joining business chambers can open doors that would otherwise remain closed.
Moreover, strategic alliances—whether for distribution, marketing, or product development—can reduce costs, increase market reach, and accelerate growth.
Conclusion: From Vulnerability to Viability
The entrepreneurial journey in South Africa is not for the faint-hearted. The economic landscape presents both opportunities and obstacles, and while many businesses begin with promise, too few survive long enough to reach their full potential.
To reverse this trend, entrepreneurs must shift from reactive to strategic thinking. They must invest time in market research, build solid financial foundations, plan for cash flow disruptions, and hire with intentionality. Furthermore, cultivating talent, embracing lifelong learning, and fostering collaborative relationships can significantly enhance business longevity.
At Ovid Capita, we advocate for an integrated approach to entrepreneurship—one that combines passion with planning, and innovation with execution. With the right guidance, tools, and mindset, South African entrepreneurs can overcome the systemic barriers that currently hinder SME growth and unlock the full potential of their ventures.
By addressing these avoidable pitfalls and embracing best practices, we can build a stronger, more inclusive, and sustainable business ecosystem that not only drives economic transformation but also uplifts communities across the country.
Ekos Akpokabayen has an MSc in Finance, and also the Chief Investment Officer at
Ovid Capita
society
Ajadi Visits Ibadan Chief Imam, Receives Blessings
Ajadi Visits Ibadan Chief Imam, Receives Blessings
The leading gubernatorial aspirant in Oyo State on the platform of the Peoples Democratic Party (PDP), Ambassador Olufemi Ajadi Oguntoyinbo, on Wednesday paid a courtesy visit to the Grand Chief Imam of Ibadanland, Sheikh Imam Abdul Ganiy Abubakir Agbotomokekere, at his Oja’ba residence in Ibadan, where discussions centred on leadership, integrity, and the role of prayers in governance.
Ajadi, who described the revered Islamic cleric as a spiritual pillar in Oyo State, said his visit was to seek prayers and wise counsel as he continues consultations ahead of the 2027 governorship race.
While addressing the Chief Imam, Ajadi commended his consistent prayers for Ibadanland, Oyo State and Nigeria, noting that religious leaders remain critical stakeholders in nation building.
“I have come to seek your prayers and spiritual blessings because of your important role in promoting peace, unity and moral guidance in our society,” Ajadi said.
“I also want to appreciate your continuous prayers for the progress of Ibadanland, Oyo State and Nigeria as a whole. My prayer is that Almighty Allah will continue to grant you sound health and long life to witness many more Ramadan seasons on earth.”
Speaking further, the PDP gubernatorial aspirant emphasised the need for leadership driven by compassion, fairness and accountability, stressing that his political aspiration is rooted in service to the people.
“My ambition is not just about occupying an office but about serving the people with sincerity and fear of God. We must continue to encourage politics that will bring development and improve the welfare of our people,” he added.
While speaking with journalists after the visit, Ajadi also assured the people of Oyo State and Nigerians at large that the internal crisis and political tensions within the Peoples Democratic Party (PDP) have been brought under control by the grace of God. He expressed optimism that the party would emerge victorious in all elective positions in the 2027 general elections.
In his response, Sheikh Agbotomokekere advised the governorship hopeful to remain focused on the principles of good governance, warning against corrupt practices often associated with politics.
The respected Islamic scholar noted that while politics is practised differently by individuals, only leaders with integrity and fear of God can truly deliver the dividends of democracy.
“Politics is practised by different kinds of people. Some play politics in a corrupt way, while others practise it with sincerity. My prayer is that you will be among those who will practise democracy in the right way if you become governor,” the Chief Imam said.
He reminded the aspirant that human ambition can only be fulfilled by divine approval, stressing that ultimate power belongs to God.
“Whoever is seeking a position should know that only Allah can make such an ambition come true. Whether a person becomes famous or remains unknown is also by the will of Allah,” he said.
Offering prayers for the politician, the cleric added: “Many people may be struggling for a position meant for one person, and it is only God who knows the rightful person. I pray that Almighty Allah will make you the chosen one among all the contenders.”
Using a football analogy to further illustrate his point, the cleric advised Ajadi to be wary of political distractions and misleading influences.
“On the football field, sometimes spectators believe they understand the game more than the players themselves. I pray that you will not be misled by so-called political gurus and that God will guide your steps aright,” he said.
Sheikh Agbotomokekere, the 18th Chief Imam of Ibadanland, is widely respected across South-Western Nigeria for his scholarship, spiritual leadership and advocacy for peaceful coexistence among religious and political groups.
Observers say the visit forms part of Ajadi’s ongoing consultations with key stakeholders, traditional rulers and religious leaders as political activities gradually gather momentum ahead of the next electoral cycle in Oyo State.
The cleric offered special prayers for peace in Oyo State, successful leadership, and continued unity among the people despite political and religious differences.
society
When Gaddafi Challenged the World Order: 2009 UN Speech, Veto Power and the Quest for Global Justice
When Gaddafi Challenged the World Order: 2009 UN Speech, Veto Power and the Quest for Global Justice
By George Omagbemi Sylvester
“Gaddafi’s 2009 UN Address Exposed Security Council Inequities and Sparked a Continuing Debate on Veto Power and Global Justice.”
Muammar Gaddafi, the then‑leader of Libya and President of the African Union, delivered one of the most extraordinary speeches in the history of the United Nations General Assembly on 23 September 2009 at the UN headquarters in New York City. Originally allotted just 15 minutes, Gaddafi’s address stretched to nearly 100 minutes and became infamous for its confrontational tone toward the UN Security Council’s structure and global power imbalances.
Gaddafi’s central message was a fierce critique of the permanent members of the Security Council (the United States, Britain, France, Russia and China) and their veto powers. He questioned whether an institution founded on principles of equality and peace could truly function when a handful of powerful states could unilaterally block action on urgent global crises. “The veto is against the charter, we do not accept it and we do not acknowledge it. Veto power should be annulled,” he declared in his address.
He held up a simple paperback copy of the UN Charter, reading sections aloud in front of diplomats, kings, presidents and delegates, and at times even tossing it aside to dramatize his point that the rules of international law mean little when selectively applied.
What Gaddafi Argued: Inequality at the Heart of the UN
Gaddafi’s speech was not merely rhetorical theatre; it was an unfiltered expression of frustration shared by many countries of the Global South, who view the UN’s highest decision‑making body as outdated and unrepresentative of global realities. According to his speech, the Security Council “did not provide us with security but with terror and sanctions,” a stinging indictment of how powerful nations have wielded war, intervention and punitive measures with little accountability.
Scholars and analysts have since weighed in on the structural issues Gaddafi raised, even if they disagree with his broader worldview. Professor Andrzej Polus, a political economist at the University of Wrocław, notes that the Security Council’s composition “reflects the situation of 1945 when it was created,” a geopolitical reality vastly different from the world of today. He explains that although many African countries gained independence in the 1960s, “Africa remains excluded from real influence within this structure”; a point that echoes elements of Gaddafi’s critique, even if not his rhetoric.
The Veto Debate: Scholarly Voices on a Flawed Mechanism
The heart of the controversy lies in the veto power, a unique privilege that allows any of the five permanent members to block substantive decisions, even if all other members vote in favour. Critics argue this mechanism creates a persistent “veto‑dilemma,” where the Council’s ability to act decisively on humanitarian crises (genocide, war crimes or severe conflict) is often stymied by narrow national interests. A legal study from the University of Cape Town highlights that even reforming the veto itself can be blocked by the veto, revealing a deep structural paradox that undermines effectiveness and human rights protection.
Scholars like those cited in a comprehensive review of Security Council dynamics spanning 1990–2022 conclude that “veto usage consistently delays or weakens responses”, especially in crisis‑related resolutions, exposing the tension between great power interests and collective security. Such research underscores that while the veto system was originally conceived as a safeguard for peace among major powers, in practice it has often paralyzed action and diminished the Council’s legitimacy.
Another academic analysis argues that the veto has “evolved from a collective safeguard into a political instrument” that obstructs accountability and inhibits effective humanitarian responses. The author suggests alternative mechanisms like a “Veto Accountability Index” and measures to restrict veto use in atrocity contexts to mitigate these effects; reforms that would preserve the broader structure while addressing some of its most damaging consequences.
Critics and Reformers: Beyond Gaddafi’s Rhetoric
Although scholars may agree on the need to reform the Security Council’s structure, they caution that simply abolishing the veto is no silver bullet. Achieving meaningful reform requires collective diplomatic consensus among the very powers reluctant to yield influence; a daunting political challenge. As one expert study notes, even legal mechanisms to regulate veto power are tangled in procedural hurdles that can themselves be blocked under current rules.
In the United Nations General Assembly debates of recent years, multiple member states have urged limiting or suspending veto use, especially in cases of genocide, war crimes, and crimes against humanity. Delegates emphasise that “the veto should not serve as a weapon of hatred and war” and that without structural change, the Council’s legitimacy and broader reputation will continue to erode amidst ongoing global conflicts.
Why It Still Matters: The Legacy of 2009
Gaddafi’s speech was polarising, with some contemporary commentators dismissing it as rambling or opportunistic. Yet the core elements of his critique (the inequality embedded in global decision‑making, the power disparities between rich and poor nations, and the need for a more representative international order) remain central to scholarly and diplomatic dialogues today.
Professor Polus’s reminder that the current system was designed in a geopolitical context that no longer exists captures the essence of this debate. Many countries, particularly in Africa, Asia, and Latin America, continue to advocate for expanded representation or fundamental restructuring, whether through increasing the number of permanent seats or creating new models of weighted voting that reflect 21st‑century power distributions.
Critics of the veto, like institutional reform advocates and academic analysts, caution that while Gaddafi’s dramatic performance was controversial, his underlying question (Can international peace and equality be achieved if a few states can single‑handedly block action?) remains a central challenge confronting the UN.
Truth, Power and the Future of Global Governance
More than a decade later, the riffs between rhetoric and reform persist. Gaddafi’s 2009 address remains a symbolic flashpoint; not because it reshaped the United Nations overnight, but because it brought into stark relief the tensions between the ideals enshrined in the UN Charter and the realpolitik of international power.
For many scholars and diplomats today, the road to a more equitable United Nations is neither straightforward nor simple. But the debate over veto power (whether it should be retained, limited, or reformed) continues to shape discussions on international justice, collective security, and the legitimacy of global governance in an increasingly interconnected world.
society
Nigeria Launches Evacuation of Citizens from Iran Amid Escalating Middle East Conflict
Nigeria Launches Evacuation of Citizens from Iran Amid Escalating Middle East Conflict
By George Omagbemi Sylvester
“NiDCOM Coordinates Safe Passage Through Armenia as Nigeria Acts to Protect Citizens Amid Iran‑US‑Israel Tensions.”
The Federal Government of Nigeria has initiated a strategic evacuation of its citizens from Iran, providing safe passage through the Republic of Armenia, as the Middle East confronts renewed waves of military tension. The operation was confirmed on Wednesday, March 11, 2026, by Hon. Abike Dabiri‑Erewa, Chairperson of the Nigerians in Diaspora Commission (NiDCOM), in a statement emphasizing that the exercise is voluntary for citizens wishing to leave Iran.
Dabiri‑Erewa highlighted that Nigerian Embassy officials in Tehran are actively coordinating with evacuees to ensure a seamless transfer to Armenia, where Nigerian diplomatic representatives are on standby to provide support. She reassured that no Nigerian citizen has been harmed to date, stressing the government’s commitment to safeguarding nationals amid volatile regional developments. “We are closely monitoring the situation and providing necessary support to all Nigerians who wish to return safely,” she stated.
The evacuation comes as Iran continues its military engagements with the United States and Israel, launching a series of missiles, drones, and strategic operations that have heightened tensions across the Gulf and extended into neighboring regions. The escalating conflict has created uncertainties for foreign nationals in the region, prompting multiple countries, including Nigeria, to activate emergency protocols for their citizens.
NiDCOM’s operations are strategically designed to balance urgency with safety, ensuring that citizens are not forced to evacuate but can leave at their discretion. The Armenian border has been identified as a secure corridor, leveraging cooperative agreements with the Armenian government to provide logistical and humanitarian assistance during transit. This collaboration underscores Nigeria’s proactive diplomatic engagement, reflecting its commitment to protecting its diaspora even in highly sensitive geopolitical environments.
Nigeria’s decision mirrors global efforts to safeguard nationals in conflict zones. For instance, India and the Philippines have recently undertaken similar evacuation measures in response to the same Middle East tensions, highlighting the shared challenges faced by countries with substantial expatriate populations in volatile regions. For Nigeria, with tens of thousands of citizens studying, working, or residing in Iran and surrounding states, the evacuation is both a humanitarian and strategic initiative.
Security analysts note that the initiative also serves to prevent potential diplomatic crises, should Nigerian citizens become caught in hostilities. By providing organized, monitored evacuation routes, Nigeria reduces the risk of casualties and ensures that its citizens maintain access to diplomatic protections and consular services throughout the process.
Dabiri‑Erewa further confirmed that NiDCOM, in collaboration with the Ministry of Foreign Affairs, is establishing emergency hotlines and information channels to keep citizens updated on transit schedules, border requirements, and safe reception points in Armenia. The government emphasizes that evacuees will receive assistance including temporary accommodation, medical support, and onward travel options back to Nigeria once conditions permit.
As the situation in the Middle East continues to evolve, Nigeria’s evacuation of its citizens from Iran represents a decisive and responsible response to protect lives while upholding its international obligations. By acting early, the government seeks to demonstrate that the welfare of Nigerians abroad is a national priority, reflecting lessons learned from previous global crises where delayed responses exacerbated risks to citizens.
This evacuation effort highlights the critical role of NiDCOM in modern Nigerian diplomacy, showcasing how proactive measures, intergovernmental collaboration, and clear communication can safeguard citizens during times of international instability, ensuring that Nigeria’s nationals are never left vulnerable in volatile regions.
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