State-business relations for entrepreneurial takeoff in Africa: institutional analysis

Abstract

PurposeReports 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/approachComparative 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.FindingsThe 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/valueThe 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.

The African philosophy of Ubuntu and family businesses: a perspective article

“…This understanding is crucial for engaging effectively with them and fostering enhanced business relationships. Indeed, people's social and cultural practices generally have wider ramifications for their orientation towards entrepreneurial activities and business relationships (Hossain et al, 2023). Therefore, there is a need to explore the nature of institutional logics (e.g.…”

“…In this instance, future research could explore the use of Ubuntu in modelling ethical leadership and behaviours among family business leaders and employees. This avenue is significant given that the African continent has been labelled as one of the continents where unethical behaviours, corruption, poor governance and instability (Hossain et al, 2023;Ellis et al, 2022;Warf, 2017) are common. In line with this, researchers could examine how indigenous African family business leaders use the notion of desirable obedience, embedded in the Ubuntu philosophy, to cultivate attributes of discipline, hard work, loyalty and reliability among family and non-family members, ultimately influencing the success of their family businesses.…”

Guest editorial: The new economy and employment in Africa: an introduction

“…The selected papers have positively and constructively accommodated comments from the editors and referees, which have led to substantial improvements of the original versions of the manuscripts, so that the corresponding manuscripts are critically positioned on the extant contemporary literature, theoretically informed, empirically robust and policy-worthy. The nine selected articles represent distinct or standalone contributions to knowledge, which can be discussed in more perspective in four main strands, notably (1) ICT adoption and employment (Osabohien, 2024; Asongu and Odhiambo, 2024); (2) creativity and innovation (Medase and Savin, 2024; Otache, 2024); (3) job creation, satisfaction and career advancement (Ayimah et al , 2024; Fitong Ketchiwou and Naong, 2024; Gollagari et al , 2024) and (4) institutional and economic growth perspectives of employment and entrepreneurship (Gómez and Irewole, 2024; Hossain et al , 2024).…”

“…Looking at the fourth strand on insights into institutional and economic growth perspectives and entrepreneurship, Hossain et al (2024) have examined a general tendency in “doing business performance” in Africa, building on the premise of Ghana to assess how specific indicators influence SME development. It is apparent from the findings that the nature of leadership, economic structure, sociocultural imperatives as well as players (i.e.…”