African Entrepreneurship: Constraints and Improvements
The typical African entrepreneur is a necessity entrepreneur, who works in the informal sector on a small piece of land. Young people would like to be a successful entrepreneur, but hesitate to start a formal enterprise. Their role models are different. Entrepreneurship in Africa has to face more uncertainty than elsewhere, because of the five “C”s: corruption, crime, conflict, competition, and climate change. High uncertainty leads to short-term time horizons. Other constraints include limited education, lack of finances, and bad infrastructure. If these limitations were addressed on a large scale, an enormous entrepreneurial potential could be unleashed.