Institutional and Economic Foundation of Entrepreneurship in Africa: An Overview

Journal of Developmental Entrepreneurship, Vol. 16, No. 1, 2011

19 Pages Posted: 22 Oct 2011

See all articles by Nir Kshetri

Nir Kshetri

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics

Date Written: October 21, 2011

Abstract

Africa is arguably the richest continent in terms of minerals and natural resources. Prior research has also found that Africa has an abundance of entrepreneurs that possess ability to identify business opportunities and to exploit them. The continent’s entrepreneurial performance, however, has been weak. Our goal in this paper is modest and is simply aimed at identifying and synthesizing the available evidence on economic and institutional factors affecting entrepreneurship in Africa. This paper also reviews various mechanisms by which foreign businesses are exploiting Africa for resources and market and examines Western response to the low level of entrepreneurial activities in Africa. Finally, this paper provides case studies of some successful entrepreneurial activities in the continent. The cases indicate that successful businesses do not necessarily have to depend on natural resources.

Keywords: Arbitrage strategies, oligarchic capitalism, formal and informal institutions, natural resources, Susu collectors

JEL Classification: F01

Suggested Citation

Kshetri, Nir, Institutional and Economic Foundation of Entrepreneurship in Africa: An Overview (October 21, 2011). Journal of Developmental Entrepreneurship, Vol. 16, No. 1, 2011. Available at SSRN: https://ssrn.com/abstract=1947439

Nir Kshetri (Contact Author)

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics ( email )

401 Bryan Building
Greensboro, NC 27402-6179
United States
336-334-4530 (Phone)
336-334-4141 (Fax)

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