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Digital startup success

BACK in 1996, two South African brothers formed a startup by the name of Bluegrass Digital. It was the time of the dotcom era and the startup was a basically software development house.

Seeing that the local market was not offering enough business, they moved their focus towards Europe.

Now, a couple of decades later, Bluegrass and other companies have evolved to deliver a number of web-based successes. Bluegrass in particular has evolved into a digital production agency that focuses on designing, developing and delivering applications across web, mobile and online social platforms.

The African market in general has been slow to establish such businesses. But with more startups coming in, networking is expected to increase. Infrastructure-related investment has improved during the last decade or so.

Cape Town has become a hub of sorts for such companies and they provide remote services elsewhere in South Africa. A major point is that the distribution of skill is not limited to a single location. However, the country as a whole has had a tough time in terms of reputation management over the years.

A publication from Reputation Institute also reveals that top companies in South Africa are undergoing a reputation crisis. This makes it important for digital startups to stay clear of social media attacks, rip-off reports and other negative press if they want to be successful in the long run.

The Brand.com reviews highlight how a reputation management company can help businesses deal with a negative reputation through different online channels, and also what to look for in a reputation management company.

Public access needs to be improved to launch new products or services. The CEO of Bluegrass, Nicholas Durant, believes that mobile technology development is going to drive these businesses in the next few years.

In the case of South Africa and African countries in general, the cheapest route to access the internet is through mobile devices. In many ways, mobile technology is establishing itself faster here than in Europe.

Africa packs punch in mobile space development

This statement carries weight as platforms and technology in the mobile space are developing faster in Africa than in Europe, which has a higher number of smartphone users.

Some startups have focused on developing payment platforms through mobile tech, a strategy which has become quite popular.

A common trend is that companies in South Africa are focusing on fostering new partnerships in Ghana, Nigeria and Kenya. This is because within Africa, each country has its own way of doing business. Mauritius is also focused on developing mobile platforms within its own territory.

A number of analysts believe that if online companies can improve their status, company networking within Africa would increase. Several trusted business partners have developed an effective presence on platforms like LinkedIn, which is helping them to contact foreign partnerships.

The success of digital companies in South Africa is evident from the 20% increase in such startups during the last five years. A further incentive for business owners is that the market in the rest of Africa is pretty open. The competition is slowly improving, which means there is massive room for growth.

Investment in this area is expected to drive more growth. A positive delopment is that the stock performance of online companies has been improving for quite some time. State-based incentives would also be a major boost.

 - Fin24

*This guest post is by freelance writer Sara Stringer, who specialises in personal finance. 
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