Business analyst, researcher, and writer Ebunoluwa Ashley-Dejo has warned that the widening “data divide” between large corporations and small businesses across Africa could become a major obstacle to innovation and startup financing on the continent.
Ashley-Dejo made this known during the May edition of the monthly business series hosted by Techeconomy, which focused on the theme: “Financing the Future: How Local Capital and venture Debt Can Power Africa’s Next Wave of Innovation.”
The event also featured contributions from Damilare Davola, investment banker and business analyst, and Success Ajilore, founder of Success Transformation Network.
Speaking extensively on the operational challenges facing African startups and SMEs, Ashley-Dejo explained that while larger enterprises are rapidly adopting technology, analytics, and automation, many small businesses are still functioning with limited operational visibility.
“I think the gap is actually becoming more serious because large enterprises are moving faster with technology, automation, and analytics, while many SMEs are still operating manually or semi-manually,” she stated.
According to her, the difference is not necessarily intelligence or creativity, but the ability of businesses to access and interpret operational data that drives decision-making.
“A large company can track customer behavior in real time. They can forecast demand, monitor cash flow daily, predict churn, and make decisions quickly because they have systems underneath the business,” she explained.
Ashley-Dejo painted a practical picture of the realities many African entrepreneurs face, using the example of a small retail business owner in Lagos who may generate daily sales without fully understanding the profitability patterns or operational leakages within the business.
“The issue is visibility,” she emphasized. “Many African entrepreneurs are incredibly resourceful, but without proper systems, they may not know which products generate the highest margin, which customers buy repeatedly, or how much money is leaking through inefficiencies.”
She warned that this growing imbalance could create long-term innovation risks for Africa, especially as investors increasingly demand operational transparency before committing funds.
“So over time, the large companies become smarter and more efficient, while the SMEs keep reacting instead of planning,” she said. “Investors today want visibility. They want to understand patterns, customer behavior, revenue consistency, and operational maturity.”
Ebunoluwa Ashley-Dejo further noted that many startups with promising ideas still struggle to attract financing because they lack the structured operational data investors now expect.
Addressing founders directly, she urged African entrepreneurs to focus more on practical business metrics rather than vanity indicators.
“I think founders should pay more attention to practical metrics, not vanity metrics,” she said. “Things like monthly revenue trends, repeat customer rate, customer acquisition cost, gross margin, cash conversion cycle, churn, inventory turnover, and how long it takes to collect payments.”
According to her, these indicators provide a clearer picture of whether a business can survive, scale sustainably, and repay capital.
Speaking on the future of startup financing across Africa, Ashley-Dejo predicted that investors over the next five years would shift their attention from polished pitch decks to operational performance and measurable business visibility.
“I honestly think over the next few years, investors are going to care less about just the pitch deck and more about what’s actually happening underneath the business operationally,” she stated.
She also projected that alternative financing models such as revenue-based financing, venture debt, and blended finance would continue gaining relevance across Africa as investors adapt to the continent’s unique business realities.
“Because honestly, in this environment, visibility is becoming very important,” she added. “Founders who cannot clearly explain their business with data may struggle more to attract serious funding.”
Other speakers at the event echoed similar concerns about the future of innovation funding in Africa. Davola stressed the need for startups to move beyond repetitive fintech models and focus on solving critical African challenges, stating that, “Africans must invest in Africa.”
Ashley-Dejo also highlighted the importance of professionalism and sound business analysis in attracting investors, noting that African innovators must build businesses with structures capable of supporting sustainable growth.
The Techeconomy Business Series has continued to serve as a leading platform for conversations around technology, entrepreneurship, and economic transformation across Africa.
Watch the TBS Session on YouTube:
