SMEs in Africa Face Collapse Without Strong Structures

Nsikan Ubi, founder and CEO of Nubi Consult, warns that small and medium-sized enterprises (SMEs) across Africa risk collapse without robust operational structures. Ubi highlights that many businesses underestimate the importance of internal systems, often prioritizing rapid expansion over organizational discipline.

This oversight can lead to operational inefficiencies, particularly as firms transition from early-stage growth to more complex operations. Ubi notes that unclear roles and fragmented communication can hinder effective delivery and scale.

She points out that many companies expand their customer base without first strengthening their internal coordination mechanisms, which can lead to operational breakdowns. Ubi identifies a common misconception among founders that growth will naturally resolve operational inefficiencies, which often exacerbates existing issues.

She stresses that successful scaling requires clear ownership structures, standardized workflows, and defined accountability systems. Ubi emphasizes that investors are increasingly focusing on operational readiness, not just revenue growth, when assessing business scalability, urging founders to prioritize operational clarity for sustainable growth.