Expanding and strengthening local entrepreneurship for structural transformation in Africa

Abstract

The study highlights the critical role expected from local entrepreneurships in supporting Africa’s agenda of industrialization, structural transformation and inclusive growth. However, evidence shows that African entrepreneurs face significant challenges, including a lack of access to funding, support services, skills training and a sufficiently educated and productive talent pool, and reliable and affordable power infrastructure. They also typically often face a less predictable regulatory environment and other administrative barriers, in particular those relating to small enterprises. The countries (Botswana, Ghana and Nigeria) examined in this study have a mixed record of development strategies, shaped primarily by country specification and their historical trajectories. However, the selection of the three countries is based on the drive in the countries for entrepreneurial activities. For example, the 2012 Global Entrepreneurship Monitor indicates that entrepreneurs in Botswana, Ghana and Nigeria are all driven by opportunities rather than necessity.