Our Methodology

Our methodology has involved six stages:

• Early hypothesis and assumptions;

• Determining scope and processes, and aligning resources correspondingly; 

• Diagnostics through evidence and data collection, and extensive review (primary and secondary research and participatory workshops sessions);

• Concept development;

• Peer review & pressure testing; and

• Phase 2 feasibility development.

We developed a set of 75 early hypotheses and assumptions which were pressure-tested and challenged as we continued our data analysis journey. These included:

• The concept of “scale” is not an exact science because it is part art. 

• Only very recently have attempts been made to better define scale from an African perspective.

• There are significant knowledge gaps - in both academic understanding and industry practice - about how African businesses successfully scale.

• A paucity of high quality market data, combined with the fact that a lot of company-specific data is too sensitive to be in the public domain, makes it clear why most work on scale has relied on a qualitative, case study approach. 

• There is little formal quantitative research investigating commercial scale in Africa, especially the causes of scale, as opposed to scaling of social enterprises, of which much more robust research has been undertaken.

• Longitudinal research is also absent, as are assessments examining the linkages, correlation, and interplay between social and commercial scaling.

• There is very little demand-side data regarding founders’ specific needs. This has resulted in assumptive supply-side solutions, which are less likely to be fit for purpose. 

Our research focus applies specifically to sub-Saharan Africa, distinguished from North Africa on the basis of geographic, economic and cultural differences between the two parts of the continent. This differentiation is used commonly in academic research, in policy-making initiatives, and by multilateral institutions, like the World Bank.  

We have approached this research in a sector agnostic manner, recognising the utility of future sector-specific research, given how differently sectors behave. 

The Financial Times’ list of Africa’s fastest growing companies includes a range of sectors. Some are in fintech. But not all the fastest-expanding companies are high-tech. More traditional companies, among them include mines and construction firms, are included, proving that not all fast growth is digital.

Our focus is primarily on scaling businesses. Whilst we have considered the models and strategies of multinational and local corporates in Africa - many of which have successfully scaled against the odds and from which lessons may be learned for the scale-up sector - they have not been our primary focus.  Similarly, whilst we have considered scaling in the social entrepreneurship arena, which is more mature than its commercial counterpart, this research is not focused on scaling social enterprises.

Within the commercial entrepreneurship ecosystem, we are focused not on the early stage, when a venture is still a ‘startup’, but afterwards, once it has transitioned to a ‘scale-up’. We have detailed these distinctions in the Art and Science of Scaling chapter.

Our diagnostics phase involved: 

• Conducting 30 formal interviews (which were recorded and transcribed), and 100+ informative conversations (which were not recorded);

• Analysing and codifying 500 documents (academic journals, industry reports, expert articles, op-eds, etc.); and

• Delivering 3 participatory stakeholder workshops with experts.

We conducted 30 semi-structured interviews with leading African scaling ecosystem experts. We selected these individuals based on their deep experience (whether as founders, investors, ecosystem catalysts, or academics). This enabled us to gain a pragmatic and holistic understanding of the issues from a variety of informed and insightful perspectives. Each interview was recorded and transcribed in detail and then assessed against different analytical frameworks to help to draw out similarities and differences. We are incredibly grateful to the individuals who kindly gave us their precious time, who are listed in the acknowledgements section.

We recorded our formal interviews using AI transcription software. Figure 5. illustrates the words most frequently used by interviewees. In addition to formal interviews, we held discussions with more than 100 other ecosystem stakeholders, whose insights and opinions have influenced our thinking. We are equally grateful for their valuable contributions.

Our analysis took an integrative review approach, based on scientific knowledge and anecdotal evidence. We analysed and interrogated the broader entrepreneurial ecosystem, looking at publicly available intelligence. We undertook an extensive literature review of academic research. We sourced information about scaling and high-growth ventures, entrepreneurial ecosystems, and macro conditions from a wide range of sources. This involved extensive desk research, which was supported by PhD candidates from project partners the University of Edinburgh and the University of Nairobi. 

We have analysed 500 documents, which are listed in the references section. This helped obtain a broader understanding of the complexities and challenges inherent within the current system, as well as highlighting existing research gaps. Our research repository includes reports (grey literature), academic journals (African and international), articles, scaling programmes (both in Africa and internationally), and monitoring and evaluation approaches being applied (or not). We have committed to making our research publicly available in the spirit of collaborative working, transparency, and to promote shared learnings.

We ran three expert workshops during March 2022, each focused on a different scaling ecosystem stakeholder audience:

• Founders. A participatory workshop with 12 founders or leadership team members from scaling businesses (which we defined as post revenue, employee headcounts between 30-300), which was facilitated by Upshot, a leading scaling advisory venture based in the Netherlands. The session focused on the scaling journey, and the transition from startup to scale-up.

• Investors. A private ‘Chatham House’ session with a cross-section of VCs and funds, global and local, that are already investing successfully in Africa. This workshop considered specific key pain points and the opportunities associated with greater ecosystem collaboration.

• Academics. Hosted by our project partner, the Scaling Business in Africa division of the University of Edinburgh Business School. Professors and researchers were invited to focus on different entrepreneurial academic networks and the potential value associated with data collaboration principles. The session was run in conjunction with ChangeSchool, which is implementing the British Council’s African Universities Innovation (AUI) Programme, and developing a dedicated community of practice involving researchers actively supporting African entrepreneurship goals.

We are very grateful to all the individuals who participated and offered their valuable insights (please see the acknowledgements section).

Based on our diagnostics, we explored early concept development work to design a series of bespoke ecosystem solutions. We also devised a scorecard approach to assess the viability of the proposals we have set forward. We believe further co-design processes would be beneficial to augment and test our ideas and approaches, especially bringing together new actors from outside traditional spheres of influence to leverage new insights, and to originate different approaches.

A number of the proposals we have outlined require detailed feasibility (cost benefit and viability) analysis.  A phase two of this project involves the prioritisation of a number of the proposals which could be taken to full business case before being operationalised roadmapped and taken into market.  We welcome the opportunity to work with partners who share our values and ambition as we move into the delivery phase.