Entrepreneurship in Africa – a classificatory framework and a research agenda

Growth Potential of Tourism Taxation in Maldives

Since the 1990s, several new indices like the Index of Economic Freedom, Doing Business, Global Competitiveness Index, have been created to achieving real progress in modernizing the business climates of developed and developing countries alike. These indicators however are focused largely on ameliorating burdens for current business, addressing issues with property rights, processes, etc. While necessary conditions, in the public effort to improve the economic incentives and create employment, they remain insufficient to foster the economic font of development: entrepreneurship. It has to be clear that entrepreneurship, and entrepreneurship policy is not merely about small business, or even at times about business at all, but about creating environments where people are able to perceive entrepreneurial opportunities, opportunities to improve their lives and been powered by the environment to act upon their visions. While much has been written about the Global Entrepreneurship Monitor (GEM) and increasingly about the Global Entrepreneurship Development Index (GEDI), this paper represents the first attempt to examine private enterprise development in Africa.

Entrepreneurship in Africa Through the Eyes of Gedi

L'objectif des auteurs de cet article est double. Il s'agit d'une part de presenter une etude exploratoire sur les tendances actuelles temoignant de l'emergence d'un nouvel activisme non gouvernemental dans le champ de l'education et d'autre part de dresser un cadre analytique afin d'evaluer l'importance de cet activisme, en elaborant des concepts bases sur les recherches ayant porte sur les nouveaux mouvements sociaux et les debats theoriques actuels a propos de la societe civile mondiale.

In the digital age, social media marketing has emerged as a transformative tool for businesses, especially small enterprises, to enhance brand visibility, engage customers, and drive business performance. This study examines the impact of social media marketing on small businesses in Malappuram Municipality, exploring how various platforms and strategies influence business growth, customer satisfaction, and profitability. The research adopts a descriptive and analytical approach, employing primary data collected through surveys from 50 small businesses. Findings reveal that social media marketing significantly improves brand awareness, customer interaction, and revenue generation while enabling businesses to adapt swiftly to market changes. The study highlights key strategies and challenges faced by small businesses in leveraging social media as a marketing tool, offering insights for entrepreneurs and policymakers to optimize digital marketing practices in local business contexts.

This chapter proposes some strategic initiatives for African governments, corporations, non-profits and citizens to take, in an effort to deploy innovation and knowledge to build the capacity of entrepreneurs, thereby enabling them to produce goods and services that are profitable in the marketplace. The chapter argues that Africa’s role and presence in the global creative economy are weak. Africa is marginalised from the creative economy, and the polylemmas inhibiting the continent’s active and rewarding participation in the global economy must be addressed through concerted efforts and collaboration by all stakeholders at the local, national and international levels, and by deploying innovation and knowledge, along with other requisite political, economic and institutional reforms. Entrepreneurship has been the key to the economic success and, to some extent, political and strategic pre-eminence of the advanced countries. Africa is in a race for time, as the population explodes, driving rapid urbanisation and the growth of slums, and the need for schools and health centres places enormous pressure on the meagre resources of states. These issues are exacerbated by extraneous factors such as climate change, terrorism and global economic volatilities. Addressing the polylemmas identified through the research and interviews conducted for this chapter should equip and enable entrepreneurs to produce goods and services for local and international markets. Entrepreneurship has the potential to foster self-fulfilment and self-reliance, patriotism and sustainable development. It should provide a way for African countries with mono-economies to develop diversified and vibrant economies. It is a powerful weapon for growth and development, and the innovation and knowledge needed to fuel it are readily available in the global market. The initiatives proposed in this chapter are simple, pragmatic and feasible. True to the aim of this chapter, they are innovative and knowledge-based, and their adaptation can trigger the change needed to catapult African entrepreneurs into the global theatre of the creative economy.

Evidence of Gender-Bias in Early-Stage African Entrepreneurial Finance

Psychological preparedness for entrepreneurial actions helps to connect macro-institutional support for entrepreneurs to actions of entrepreneurs. Action knowledge and personal initiative are part of entrepreneurial preparedness, and there are two training concepts that have been developed to increase the number of entrepreneurs among BA and high school students in low- and middle-income countries and to improve the skills and mindset of entrepreneurs. I discuss large-scale randomized controlled interventions in both of these areas with the STEP and personal initiative training. Showing that psychological preparedness for entrepreneurial actions can be enhanced, the question is whether methods shown to work in low-income countries can inform entrepreneurship research in general. Issues that seem to speak against generalizing are often seen in necessity, survivalist, and informal entrepreneurship. These issues are discussed and are deemed of lower importance for generalization of findings. There are also methodological advantages when doing research in low- and middle income countries. Practical and policy implications are also provided.Plain English SummaryEntrepreneurship is about taking action and seizing opportunities. People often think of African entrepreneurs as just trying to survive, but there is more to it. In fact, Africa has likely many more entrepreneurs than the West, and these young business people are keen to learn and grow. We have created training programs for university and high school students to boost the number of entrepreneurs and improve their skills. We have tested these programs with over 6000 students across 11 developing countries, and they have been successful: Training participants started 30% more businesses than the control group. We have also developed a training called personal initiative to help entrepreneurs increase their profits by up to 30%. This has been tested with thousands of participants in ten countries. What makes these training programs special is that they are scientifically tested and proven to be highly effective (the tests were similar to examining the effectiveness of a new medicine). They focus on immediate skill and mindset learning. Psychological training helps entrepreneurs be ready to make the most of government and macro-economic support for businesses. So, there is a lot we can learn from entrepreneurship in Africa.

In the absence of a public safety net, wealthy Africans have the social obligation to share their resources with their needy relatives in the form of cash transfers and inefficient family hiring. We develop a model of entrepreneurial choice that accounts for this social redistributive constraint. We derive predictions regarding employment choices, productivity, and profitability of firms run by entrepreneurs of African versus non‐African origin. Everything else equal, local firms are overstaffed and less productive than firms owned by non‐locals, which discourages local entrepreneurship. Using data from the manufacturing sector, we illustrate the theory by structurally estimating the proportion of missing African entrepreneurs. Our estimates, which are suggestive due to the data limitation, vary between 8% and 12.6% of the formal sector workforce. Implications for the role of social protection are discussed.

According to the United States Small Business Administration (SBA), small business owners represent 99.9% of all U.S. firms and employ 48% of the private sector employees, which accounts for over 40% of the U.S. private sector payroll. Following global suit, the focus in the United States on entrepreneurship has been on the rise over the last decade and is a major source of employment and revenue, as well as spurring new innovation (Leutner et al., 2014, America’s Small Business Development Center [ASBDC], 2020; U.S. Small Business Administration [SBA], 2020). In order to get a full picture of entrepreneurship in the United States, research and many studies have been conducted to try to understand the accountability of strategic management and the tactical reasoning of entrepreneurs (Ciavarella et al., 2004; Hurtz & Donovan, 2000; Leutner et al., 2014; Mitchell et al., 2007; Owens, 2003; Rauch & Frese, 2000; Staniewski & Awruk, 2019). While there are many definitions of entrepreneurship, a commonly accepted definition is the behavior that is tied to the generation of value in innovative tendencies, techniques, and actions. Strategic management helps an organization, small business, or new venture to get equipped with the right management tools, anticipate changes, and direct the organizational activities along the right path as part of a decision-making process. The objective of this critical review and research agenda paper is to better understand the role strategic management plays in the birth and death of small businesses and new ventures. Further, to explore if certain personality traits of individuals are responsible for promoting such actions, more than others. The Theory of Planned Behavior is considered from a theoretical background perspective to view the lens of accountability of this body of research. Specifically, as a discipline, can strategic management likely be considered accountable for the birth and death of organizations, small businesses, and new ventures? Are certain personality traits of individuals more responsible for promoting such actions than others?

General Background: Small businesses play a crucial role in driving economic growth, particularly in developing countries. Specific Background: In Uzbekistan, the government has prioritized small business development through various policies aimed at enhancing labor potential. Knowledge Gap: However, there is limited understanding of how labor potential within small businesses directly influences economic performance in this context. Aims: This study aims to explore the relationship between labor potential in small businesses and economic growth, focusing on Uzbekistan, using a mixed-methods approach. Results: The study finds that strategic investments in workforce development, entrepreneurial capacity, and institutional support significantly improve labor productivity, business outcomes, and contribute to national economic growth. Data from 200 businesses, 40 interviews, and case studies show the effectiveness of Uzbekistan's policies, including tax incentives and training programs. Novelty: This research provides a comprehensive analysis of how labor management and government policies impact small business success in Uzbekistan, filling a critical gap in existing literature. Implications: The findings suggest that enhanced labor skills and institutional support are key drivers of small business growth and sustainable economic development, with policy recommendations for strengthening labor potential in similar economies. Highlights: Labor potential drives small business growth and economic development. Uzbekistan’s policies support productivity through tax incentives and training programs. Workforce development is key to long-term economic sustainability. Keywords: Small businesses, labor potential, economic growth, Uzbekistan, policy support

This paper seeks to stimulate debate on the agendas, methodologies and methods used in the field of small business and entrepreneurship. The paper raises questions regarding the research agendas pursued and provides some pointers for the direction of future research. Integral to this is the argument that there is a need to reflect on the condition of small‐business research and to raise the quality of research by employing robust research methods. This may involve questioning the role of small firms and entrepreneurship in society rather than merely advocating them and the policy measures taken when supporting and/or developing the small business sector. The dominance of specific viewpoints, the methodologies used in small business studies, and the consequences of these in relation to the development of a coherent scientific field of small business studies are also discussed. Examples of research activity are discussed to illustrate these themes. Overall, the paper argues that entrepreneurship and small business is a lucrative area for research. However, if the field of inquiry is to flourish, it needs to be approached from a more critical perspective, instead of merely accepting normative, or even strongly ideologically driven, standpoints now dominant in so many studies. This has implications for research agendas, methodologies and ultimately research methods training.

The aim of the economic and statistical study presented by the authors is the evaluation of the role of small manufacturing enterprises in innovation development of real sector of Russian economy. Compared to developed countries, Russia is characterized by a relatively low innovative activity of small industrial enterprises, as well as by their smaller contribution to employment and to the increase of living standards of the population. At the same time, small industrial enterprises have the highest potential for innovation growth, especially in high-tech economic activities. The similarity of small enterprises’ definition in Russia and in the European Union, the magnitude of innovative activity of small enterprises in Europe, and the development of instruments to support innovative companies make studying the European experience in stimulating the innovative activity of small enterprises in the real sector of the economy in order to adapt it to domestic practice relevant.The authors reveal the potential areas of innovative activity growth for small manufacturing enterprises on the basis of foreign experience as well as develop recommendations on support for small entrepreneurship in industrial sector. The research is based on Community Innovation Survey (CIS), national reports of European countries on the topic, the federal statistical surveys № 4 and № 2-MP provided by the Federal State Statistics Service.The study revealed key drivers of European small enterprises’ innovative activity: well-developed cooperation with other organizations, substantial investment in R&D, broad coverage of small business enterprises with support measures. Best European practices of small enterprises’ innovative activity and the analysis of the main barriers of Russian small enterprises’ innovative activity allowed to define the promising directions for supporting small business the real sector of economy of Russia: developing modernization programmes for enterprises, extending the access to borrowed financial sources, developing cooperation ties between small business enterprises. The authors highlighted growth points of innovative activity of small manufacturing enterprises that can be taken into account while developing support measures in order to increase small business’ innovative activity, create new jobs and provide population employment.

Problem statement: The central objective of this study is to help define a framework for researching the growth of small businesses. Approach: By way of a literature review, the study evaluates current research approaches to small business growth organized around the "key factors" framework proposed which include elements drawn from the characteristics of the entrepreneur, the firm and the business strategy. Results: In the absence of a unified theory of small business growth, models and approaches used to explain small business growth are fragmented and wide-ranging. A consideration of the additional impact on this framework of the external environmental dimension can inject a necessary dynamic element into the research process that is well-placed to capture the process of firm growth, as opposed to the snapshot of firm growth that tends to dominate the existing empirical work. Conclusion: The study concludes that longitudinal and case-based methodologies are needed to develop our existing understanding of small firm growth behavior.

Introduction. Global economic shocks, pandemics, military conflicts, and geopolitical crises negatively impact small businesses’ activities, making them more vulnerable to external factors. During crisis periods, small enterprises face numerous challenges, including reduced demand, restricted access to financing, rising resource prices, and deteriorating solvency. In such conditions, governments implement fiscal measures to support small businesses and minimize the crisis’s negative consequences. However, implementing most fiscal measures comes with numerous challenges for governments. Objective. The purpose of the article is to analyze fiscal measures to support small businesses during economic crises in the world in the context of overcoming challenges for the fiscal policies in crisis conditions and to outline the approaches and tools of the state support that can be effective in stimulating the development of small business in conditions of global economic shocks. Results. The study explores current trends in implementing fiscal measures by governments to support small businesses during economic crises. It characterizes the main fiscal support measures for small businesses in crisis conditions and highlights common challenges to fiscal policy in helping small companies during economic crises. Based on the analysis, directions for fiscal policy to support small businesses in overcoming crises, adapting to modern challenges, preserving jobs, and ensuring long-term development are substantiated. Conclusions. In the face of prolonged crisis conditions, fiscal policy supporting small businesses confronts a series of challenges (economic crises, military actions, climate change, etc.) that demand long-term solutions. These solutions should be based on the potential capabilities of small businesses and the development of alternative mechanisms for revenue mobilization, spending efficiency, debt management, and international cooperation. By focusing fiscal support measures for small businesses on stimulating digitalisation, environmental sustainability, innovative financing, and social entrepreneurship, small enterprises can adapt to modern challenges and ensure their competitiveness in a sustainable development environment.