Jordan vs. Kenya: What Sets the Two Entrepreneurship Ecosystems Apart
In my last
post, we started to explore some of the similarities between
the rising ‘Silicon Savannah’ and “Silicon Wadi’ tech startup
ecosystems of Nairobi, Kenya, and Amman, Jordan.
In both places, we found initial catalysts that fueled their
respective tech booms. We found similar ideas and similar
challenges- the developer-entrepreneur gap, missing investors,
hidden failures and hype cycles coming to a close.
Now, it’s time to turn our attention towards what makes these two
technology boomtowns stand on their own- the differences.
Last week, I spoke another Kenya-born entrepreneur working in
Jordan, Heath Arensen. Heath runs Tanasuk Technologies, a successful
full-service software development firm that has been operating out
of Jordan for four years now, and recently opened an office in
Kenya.
Through my conversation with Heath, and diving into the politics of
business and startups with others on both sides of the great rift
valley, here’s a bit of what I learned.
State Led vs. Private led
Nairobi’s
tech scene has taken off in spite of, not because of, the
Kenyan government. The tech boom has been primarily private sector
led, with the government taking a relatively hands-off role and
letting private companies, organizations and individuals do their
work.
Sure, there is a Kenya ICT Board that does higher level planning,
builds relationships with multinationals, and promotes Kenyan
technology and innovation, but it’s private companies that lead the
way.
In Jordan, the decision to be an ICT hub for the Middle East came
with heavy incentive and directive from the government, although
the private sector also taken an active role. Oasis 500, Jordan’s leading startup
incubator and accelerator, was partially initiated by King Abdullah
II himself.
In this way, Jordan is actually more similar to the
centrally-planned growth of Rwanda’s growing technology industry.
Both countries are small, extremely resource poor, and in tough
neighborhoods (Rwanda has been battling in east Congo for over two
decades, while Jordan is surrounded by fighting).
Creating Apps vs. Creating Content
75% of the web’s Arabic content was created on
platforms launched in Jordan, and given the growing number of
Arabic readers online and the number of startups in Jordan focusing
on creating content, this won’t be changing anytime soon.
Kenyan startups, on the other hand, aren’t producing much content.
Instead, they are building apps. Every startup is M-this, M-that,
looking to capitalize on Kenya’s mobile-centric economy and
society.
Creative Optimists vs. Stable Managers
The types of talent you find in Kenya and Jordan are
also quite different. Education is, on the whole, better in Jordan
than in Kenya, but that’s doesn’t mean Kenya is producing worse
developers or technology entrepreneurs; the country is bustling
with creative talent that often make up for lacks in experience or
education with their confidence.
In fact, most Kenyan entrepreneurs hold a business card or
Linked-in profile claiming CEO or General Manager of something,
even if it’s simply an idea. I’ve never heard a Kenyan entrepreneur
tell me “no,” or “we can’t do it.” It’s a joyful optimism, wrapped
in the brilliantly warm Kenyan hallmark smile.
In Jordan, exuberant smiles are more rare. It’s not a land of
pessimists, but certainly a place where you find a more pragmatic
and serious tone among the entrepreneurial community. They may be
less creative and optimistic, but they seem far better at creating
and working within structured systems and companies- managerial
types if you may. Kenya is full of entrepreneurs who like to create
things. Jordan is filled with entrepreneurs who build companies.
How high is the bar?
When it comes to understanding international
standards, Jordan has a distinct advantage. With Tel Aviv, Dubai,
and the Gulf states just next door, Jordanian companies and
entrepreneurs are aware of how high the bar is when it comes to
working on a global scale.
Kenya, on the other hand, is a bit more isolated. Of its neighbors-
Somalia, Uganda, Tanzania and Sudan- Kenya is the regional leader
for business & technology. While there is exposure to
international markets, it’s definitely more limited than it is in
Jordan. However, those Kenyans that do leave certainly do adjust to
a global perspective.
The Market
Lastly, there is one major difference that I alluded
to in my last piece. Jordan, as has been beaten into my head over
and over, is NOT a market. It’s too small, and 90% of the startups
here are focused on markets elsewhere. Kenya, on the other hand, is
enormous, with 41 million people, a growing middle class, and
increasing purchasing power.
Taking this into perspective, perhaps that’s why you see Kenyan
entrepreneurs working with more of a local focus, in their
attitudes, ideas, and experiences. They aren’t yet competing on a
global scale, and they have their own bar to hit.
That is, until they begin to look outwards, for funding or markets.
This is starting to happen, which is perhaps why many Kenyan
entrepreneurs are finding themselves frustrated when seeking
foreign capital.
Yet, as these two ecosystems, and the broader Middle East and East
African regions, begin to learn
from one another, these gaps will undoubtedly begin to
close.