Fintech Start-ups in South Africa : A Conceptual Framework to Guide Technology Entrepreneurs

Abstract

Owing to the lack of information and guidelines currently available for technology entrepreneurs, establishing Fintech start-ups in South Africa is challenging. The current literature on Fintech does not provide information highlighting ways in which technology entrepreneurs can establish and sustain Fintech start-ups, nor does it discuss the relevant skills required or the potential entry barriers for Fintech start-ups in the South African context. The purpose of this research is to investigate the factors that make Fintech startups successful, highlight the barriers faced by Fintech startups, elaborate on the skills required, and create a conceptual framework based on the research, that will guide technology entrepreneurs towards successful venture creation. A qualitative research methodology was used in this study using a semi-structured interview with open-ended questions as a research instrument. Financial Capital, Adherence to Regulation and Customer Centric Platform Development were some of the key findings related to establishing and sustaining Fintech start-ups in South Africa. Costly and scarce skilled resources and regulation barriers were some of the contributors to the failure of Fintech start-ups in South Africa. The government needs to assist where they can from a regulation perspective and provide more support to Fintech start-ups. Tax rebates for Fintech start-ups would also help these start-ups survive in South Africa.