Mental health remains a significant but often overlooked challenge within South Africa’s startup ecosystem. Research shows that about 70-80% of businesses in the country fail within five years of launching, creating immense psychological pressure for founders. Additionally, entrepreneurs face longer work hours, reduced financial stability, and constant uncertainty—all of which weigh heavily on mental wellbeing.Small and medium enterprises (SMEs), including startups, generate over half of the employment opportunities in South Africa. However, the sustainability of this sector demands greater attention to the mental health of its participants.
The Silent Struggle of Founders
Entrepreneurship in South Africa often glamorizes perseverance under pressure, leaving many founders hesitant to openly discuss mental health issues. Will Green, a key player in the ecosystem, notes that challenges such as failure are not widely accepted as part of the journey, making it harder for entrepreneurs to seek help. This stigma, according to Green, could diminish the pool of successful entrepreneurs over time.For many founders, the loneliness of the entrepreneurial path intensifies the mental toll. Zwelakhe Gila, the creator of one of Namibia’s first e-commerce startups, highlighted how self-imposed pressure to succeed exacerbates the mental strain. Similarly, burnout is a prevalent issue, as shared by Zimkita Nogela, founder of a digital gift card company. “Burnout is difficult to recover from, and many entrepreneurs don’t address it until it becomes overwhelming,” she explains.
Disparities in Mental Health Challenges
Research reveals that systemic inequalities aggravate the mental health crisis among South African founders. For example, financial stress disproportionately affects entrepreneurs from underrepresented communities, who often lack access to generational wealth or venture capital. This challenge is compounded by the fact that only a fraction of venture funding goes to businesses led by non-white founders, despite black entrepreneurs owning a majority of formal SMEs.
Initiatives to Combat Mental Health Issues
Encouragingly, several organizations and initiatives are stepping in to address these challenges. The South African Breweries Foundation, for instance, offers programs providing mental health and financial support to entrepreneurs. During the COVID-19 pandemic, its “Restore” program connected founders with therapists and facilitated group support sessions. The success of the initiative has ensured its continuation beyond the pandemic.In the private sector, startups like Ollie Health are working to improve access to mental health care. The company offers a mental health credit wallet, enabling users to attend therapy sessions from anywhere. As co-founder Marc Gregory Knowles explains, the platform aims to bridge gaps in access, particularly in underserved communities where only a fraction of individuals receive adequate mental health support.
A Collective Call to Action
For South Africa’s startup ecosystem to thrive, addressing the mental wellness of its key players is crucial. By dismantling the stigma around mental health, increasing funding accessibility, and fostering community support, the nation can create a healthier, more sustainable environment for entrepreneurs to succeed.
