Mogadishu Start-Ups: Motivations, Problems, and Key Success Factors

Abstract

The research explores the multifaceted nature of startups, emphasizing their fundamental goal of transforming ideas into products and gauging customer response to determine whether to persist or pivot. The evolution of startups is traced from their inception, where ideas are developed, to the subsequent stages of manufacturing, distribution, promotion, and sales, leading to potential growth and maturity. The establishment of businesses is a multifaceted phenomenon influenced by a variety of factors, and the motivations for starting a business can vary significantly across countries and individuals. Understanding these motivations is crucial for formulating strategies to support entrepreneurs in growing their businesses. While startups in every context face significant challenges, those in less developed countries encounter a myriad of challenges that distinguish their business environment from that of their counterparts in developed nations. The unique blend of these challenges creates a distinct set of obstacles for entrepreneurs in less developed economies. Research on the success factors of startup businesses reveals a lack of consensus, but certain factors are frequently mentioned across studies, often falling into three broad categories: psychological and behavioral traits of the entrepreneur, managerial skills, and the external business environment. While the specific factors may vary across cultures and regions, the overall themes of customer focus, hard work, access to resources, and social support consistently emerge as influential in the startup journey. Entrepreneurs navigating these factors effectively are better positioned for success in the dynamic and challenging landscape of startup ventures. This research aims to provide an understanding of the important motivation factors, challenges, and success factors encountered by startups in Mogadishu, the capital city of Somalia. No previous research has been done to address these issues in the context of Somalia, and this research aims to fulfill this gap. This research is qualitative research and a questionnaire consisting of three parts is employed to collect the non-parametric data which is analyzed afterwards using the SPSS software. Results show that the most important motivational factor for founders is to increase income, the most important challenge is obtaining short-term financial capital, and the most prominent success factor is hard work.