State-business relations for entrepreneurial takeoff in Africa: institutional analysis
African Journal of Economic and Management Studies
ISSN: 2040-0705
Article publication date: 27 September 2023
Abstract
Purpose
Reports and experiences suggest that several developing African economies are faced with entrepreneurial-impeding forces such as lengthy bureaucratic processes and poor regulatory space. The study examines a general trend in “doing business performance” among selected African countries and uses the case of Ghana to explore how particular indicators or forces affect the development and deployment of small and medium-sized enterprise (SME) policies.
Design/methodology/approach
Comparative analysis of six African economies on their ease of doing business score. This is followed by a critical review of the literature to develop a six-point explanatory framework to explore the relative position of the six countries on the ease of doing business scores. Using Ghana as a critical case study, the authors deploy an in-depth case study analysis via in-depth interviews of relevant stakeholders to validate the information from secondary sources.
Findings
The study observes that the nature of leadership, socio-cultural imperatives, economic structure and policy and the role of domestic institutional players and international players have implications for the extent to which the state creates an enabling environment for SMEs and entrepreneurial activities. The role of supportive cultural software that will help drive SME and entrepreneurial growth has been established. The study contends that different aspects of national culture do have implications for the tendency for people to be business-minded or to have the ability to take risks. The demand and supply sides are crucial in promoting SME growth.
Originality/value
The study develops a framework that helps explore elements to help explain ease of doing business scores and the viability of SMEs in Africa. These elements were validated through qualitative interviews as well.
Keywords
Acknowledgements
This project was funded by the European Union's Horizon 2020 Research and Innovation Program through the Marie-Sklodowska Curie (No: 823744).
Citation
Hossain, F., Mamman, A., Yeboah-Assiamah, E. and Rees, C.J. (2023), "State-business relations for entrepreneurial takeoff in Africa: institutional analysis", African Journal of Economic and Management Studies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/AJEMS-10-2022-0402
Publisher
:Emerald Publishing Limited
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