Outdated or Evolving? Rethinking Startup Support in Emerging Markets

By Salma Baghdadi

In 2019, when Tunisia launched the Startup Act, the ecosystem was still young. A handful of incubators and accelerators existed—mostly concentrated in the capital, Tunis, and operating within high-income circles. There was an urgent need to democratize access to knowledge about tech entrepreneurship, scalability, growth strategies, and lean startup methodologies.

Startup Support Organizations (SSOs) emerged as essential infrastructure—educational bridges aiming to create inclusive opportunities for aspiring founders across the country. The number of SSOs grew rapidly, surpassing 30 entities and offering more than 50 support programs. The shift to digital during the pandemic further expanded access, onboarding hundreds of students, young professionals, and aspiring entrepreneurs into this vibrant new space.

SSOs in Early-Stage Tech Ecosystems

From pre-incubation to acceleration to investment-readiness programs—with and without funding—a broad array of initiatives emerged. Yet, tracking impact and achieving meaningful KPIs proved difficult. Some of the recurring challenges included:

• Limited expertise: The ecosystem was new, with few experienced tech entrepreneurs or investors. SSOs often lacked the depth of knowledge required to deliver high-impact support.
• Generic, donor-driven curriculum: Programs were typically shaped by funders' terms of reference rather than market needs or founder capabilities, often lacking a compelling value proposition.
• Disconnected from the real economy: Founders were immersed in a romanticized Silicon Valley narrative rather than connected to local or regional market realities. Business partnerships and market access were limited.
• No direct funding to startups: SSOs, reliant on public and donor funding for their own operations, rarely funded startups themselves. Legal and operational complexities made equity or grant-based support rare.
• Misaligned business models: With funders (not founders) as their primary clients, many SSOs prioritized satisfying donor KPIs over startup needs, leading to misalignment and inefficiencies.

The Landscape Has Shifted Dramatically

Globally, startup knowledge has exploded. What was once niche is now mainstream. Thousands of free videos, courses, and toolkits offer self-paced learning. AI-powered mentors, global accelerators, and digital platforms provide strategic guidance on demand.

In this new context, many founders question whether traditional incubation and acceleration still meet their needs.

What Do Startups Actually Want?

A poll conducted in a Tunisian founders-only Facebook group asked participants to rank their expectations from SSOs. The top three responses were:

(figure 1: Suggested list in the screenshot: from top to down: training, Mentoring & advisory, Access to services, Access to a networking & community, Funding, Access to funding and business opportunities, Media exposure)

1. Access to networks and communities
2. Access to funding
3. Access to business and market opportunities 

These represent the most pressing demands from the startup community today. Founders are vocal about their frustrations with the status quo: flashy events, glamorous pitch nights, and superficial celebrations are no longer enough. Instead, they want tangible, business-oriented support.

Startups now look for:

• Strategic connections: Introductions to relevant partners, clients, or investors—not just attendance at events. SSOs that can open doors to corporates, public institutions, and international stakeholders are valued most.
• Direct access to funding: Whether through grants, convertible notes, or investor introductions, funding is still perceived as a top pain point. Even if overestimated at times, the need for cash flow in early-stage ventures remains real.
• Business opportunities: Real deals, pilot projects, procurement access, and partnerships that can unlock revenue and growth. SSOs must move from being knowledge centers to being business facilitators.
• Operational support: Legal guidance, financial structuring, admin assistance, accounting support—these services can save startups critical time and prevent costly mistakes.
• Personalized mentoring: Rather than generic workshops, founders increasingly value one-on-one mentoring sessions with confirmed experts who have relevant experience and insight.
• Exposure through media and international events: Not only to gain visibility, but to build credibility and open new markets. Media coverage, international competition participation, and global community engagement are important enablers.

In stark contrast, traditional training modules were the least requested. The implication is clear: the role of SSOs must evolve beyond education to become more hands-on, deal-oriented, and network-driven.

Strategic Shifts for SSOs: What Needs to Change

1. Clarify Your Unique Value Proposition

• What is your unique strength?
• What network can you activate and grow for the benefit of your startups?
• What specific outcomes can founders expect from you within a clear timeframe?

2. Shift from Mass to Tailored Support

• Treat startups as real businesses, not learning projects.
• Treat founders as clients or partners, not students.
• Move toward curated, high-value interventions—not generic programs.

3. Put Skin in the Game

• SSOs need to align incentives with founders by sharing risk and reward. Some models to explore:
• Equity-Based Support: Take a small equity stake (e.g. 3–7%) in exchange for high-touch support, just like Y Combinator or Flat6Labs.
• Venture Studio Model: Co-create startups and retain larger equity (10–30%). Build from scratch with founders.
• Revenue-Sharing or Success-Based Fees: Provide support in exchange for a small % of future revenues over a few years.
• Convertible Agreements: Offer services now in return for equity that converts when the startup raises funds.
• This approach fosters deeper trust, improves support quality, diversifies SSO revenue, and signals maturity to external partners. It also encourages SSOs to select startups more thoughtfully and deliver real value.
   

4. Integrate into the Local and Global Value Chain

• Local Partnerships: Build strong ties with corporates, municipalities, and ministries. Be a bridge between startups and real economy players.
• University and Research Links: Stay close to talent pipelines and innovation hubs.
• Ecosystem Collaboration: Co-design with other SSOs, VCs, and studios to create consistent founder journeys.
• International Bridges: Create gateways to global accelerators, investors, and innovation hubs. Track KPIs like international MoUs, startup cross-border collaborations, or export opportunities enabled.

5. Become a Label of Quality

• Prioritize excellence. Build a rigorous, transparent selection framework aligned with your vision and values. This will:
• Attract high-potential startups
• Build long-term trust with partners
• Turn your SSO into a recognized stamp of quality and credibility

Conclusion: From Educators to Catalysts

As startup ecosystems in Africa and beyond mature, SSOs must evolve. Once knowledge gatekeepers, they are now expected to be business catalysts.

This requires difficult shifts: from standardized to customized, from donor-focused to founder-focused, from knowledge to impact. And yes—from passive support to active investment, with real skin in the game.

The future SSO will be lean, integrated, and deeply connected—using AI for routine operations and dedicating human capital to strategy, partnerships, and trust-building. It will no longer operate on the periphery, but at the very heart of startup growth.

To truly support founders, SSOs must walk alongside them—not ahead, not behind, but in the arena, risking, building, and growing together.