The Business Environment in Sub-Saharan Africa
This chapter briefly presents an overview of the sub-Saharan African region. An understanding of the challenges and potential of this region could help to have a better grasp of the importance of this book and its call for a framework to spur economic development and growth. The chapter uses the PEST model to underline the importance of the institutional environment (economic, political, social, and technological) in the development of entrepreneurial ecosystems in sub-Saharan Africa. The chapter also uses the rankings of the Ease of Doing Business Report and the Economic Freedom Index to assess the business environment of sub-Saharan African countries. Before discussing the development of entrepreneurial ecosystems, I briefly present an overview of the sub-Saharan African region.
KeywordsEconomic environment Institutional environment Political environment Social environment Sub-Saharan Africa Technological environment
- Castellano, A., Kendall, A., Nikomarov, M., & Swemmer, T. (2015). Brighter Africa: The growth potential of the sub-Saharan electric sector. Washington, DC: McKinsey Global Institute.Google Scholar
- Chironga, M., Leke, A., Lund, S., & Van Wamelen, A. (2011, May). Cracking the next growth market: Africa. Harvard Business Review, 117–122.Google Scholar
- DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. Sociological Review, 35, 147–160.Google Scholar
- DiMaggio, P. J., & Powell, W. W. (1991). Introduction. In P. DiMaggio & W. Powell (Eds.), The new institutionalism in organizational analysis (pp. 1–40). Chicago, IL: University of Chicago Press.Google Scholar
- Hofstede, G. (1991). Cultures and organizations: Software of the mind. London: McGraw-Hill.Google Scholar
- Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institution and organizations across nations (2nd ed.). Thousand Oaks, CA: Sage Publications.Google Scholar
- Index of Economic Freedom. (2016). http://www.heritage.org/index/ranking.
- Jepperson, R. L. (1991). Institutions, institutional effects, and institutionalism. In P. DiMaggio & W. Powell (Eds.), The new institutionalism in organizational analysis (pp. 143–163). Chicago, IL: University of Chicago Press.Google Scholar
- Kiggundu, M. N. (2002). Entrepreneurs and entrepreneurship in Africa: What is known and what needs to be done. Journal of Developmental Entrepreneurship, 7(3), 239–258.Google Scholar
- McKinsey Global Institute. (2010). Lions on the move: The progress and potential of African economies. Washington, DC.Google Scholar
- Platteau, J. P. (2000). Institutions, social norms and economic development. Amsterdam: Harwood Academic Publishers.Google Scholar
- World Bank. (2016). Ease of doing business (2016): Going beyond efficiency. Washington, DC.Google Scholar
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 2.5 International License (http://creativecommons.org/licenses/by-nc/2.5/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
The images or other third party material in this chapter are included in the chapter's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the chapter's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder.