In the fast-paced and ever-changing world of startups, company culture plays a crucial role in determining success. A startup’s culture sets the foundation for the entire organisation — shaping how employees work, collaborate, and innovate. But what exactly is company culture, and why is it essential to build it?
Company culture refers to the shared values, attitudes, and beliefs that define how people work together within an organisation. It encompasses everything from the company’s mission and vision to its leadership style, work environment, and employee interactions.
A strong company culture creates a sense of identity and purpose — fostering employee engagement, productivity, and satisfaction. In this article, we will explore the different types of company culture, the factors that shape it, and time-tested strategies for building a positive culture in your startup — with insights from Ingressive Capital portfolio companies and market trends in Kenya, Nigeria, Egypt, Ghana, and Morocco.
How does company culture work?
One key aspect of company culture is how communication flows within the organisation. For example, Paystack (one of our former portfolio companies) prioritised open communication channels through regular team meetings, feedback sessions, and social events because it fostered trust and collaboration among employees.
This approach led to a more cohesive and productive work environment, contributing to their acquisition by Stripe.
Similarly, the physical workspace can influence company culture.
In Kenya, startups that design offices to promote collaboration have seen a 20% lower employee turnover rate compared to those that don’t. Even in a remote setting, intentional virtual workplace design (using tools like Slack) can nurture a sense of belonging and purpose.
Why is company culture important in a startup?
Company culture acts as the glue that binds a startup team together. A positive company culture creates a sense of belonging and purpose, fueling employee motivation and fostering a collaborative environment where innovation can thrive.
In Nigeria’s competitive tech ecosystem, for example, startups that emphasise a strong culture (like Paystack!) have been shown to attract higher-quality talent and retain employees for longer periods, enhancing their chances of success in a resource-limited environment.
What does positive company culture look like?
In Egyptian tech companies, for example, a 30% increase in employee retention was observed among startups with inclusive and flexible cultures in 2023.
Here’s what positive company culture typically involves:
- Clear mission and vision: Clearly defined goals help startups stay focused.
- Strong leadership: Leaders embodying company values set the standard for behaviour.
- Open and transparent communication: Encouraging feedback fosters trust.
- Diversity and Inclusivity: Inclusive work environments attract top talent, especially in multicultural markets like Kenya and Nigeria.
- Work-Life balance: In Moroccan startups, work-life balance initiatives have been linked to a 15% increase in productivity.
Factors that shape company culture
Whether you decide to prioritise it or not, your startup will develop its own culture.
Certain factors will shape this, including:
- Leadership: The actions and behaviours of leaders shape the culture of an organisation. For instance, Ingressive Capital-backed companies often showcase leaders who embody their company’s core values, setting a positive tone for the rest of the team.
- Company policies: In the competitive startup markets of Nairobi and Lagos, flexible work policies have become a key differentiator for attracting top talent.
- Recruitment process: Startups in Ghana emphasise hiring for cultural fit, ensuring that new employees align with the company’s mission and values to foster a cohesive work environment.
How to create a positive company culture in your startup
Building a positive company culture requires a deliberate and strategic approach. Successful startups like 54gene in Nigeria have found that applying specific strategies puts them on the right path.
So, here’s how you can replicate their success and build a positive company culture in your startup:
- Define your values. Articulate values that guide your startup’s culture.
- Hire for cultural fit. Look for candidates who align with your mission and values. Ingressive Capital portfolio companies, for instance, often look for candidates who demonstrate a passion for technology and innovation in Africa.
- Promote open communication. In Kenyan startups, regular team check-ins and feedback sessions have significantly improved employee morale and productivity.
- Recognise and reward. Publicly acknowledging achievements, as seen in startups in Morocco, boosts employee motivation and engagement.
Funding and company culture
Company culture also plays a critical role in funding. Startups with strong, cohesive cultures often position themselves favourably when seeking venture capital.
Investors, including those at Ingressive Capital, look for teams that are driven by a shared vision. For example, several of our portfolio companies have cited their company culture as a key factor in successfully attracting investors.
Summary
Building a positive company culture will help you attract and retain top talent, foster innovation, and drive business success. By focusing on your culture, you can set your startup on a path to long-term success.
And we want to be a part of that success! Company culture is crucial, but funding is what will ensure your company goes on to the big leagues. If you’re building a tech or tech-enabled business in Africa and want up to $500,000 in VC funding, apply to our fund today
