The Endogenous African Business: Why and How It Is Different, Why It Is Emerging Now and Why It Matters

Abstract

Africa is currently undergoing a transition that is unprecedented in its history. For the first time, the demand of urban populations pulls business development, thus creating economies with higher levels of specialization than before. This essay highlights the phenomenon of the endogenous African businesses that are arising in this process. These businesses tap into the natural resources and the social, economic, and cultural systems that build upon them. These resources and systems make the African business environment different from business environments in other parts of the world. Furthermore, the endogenous businesses have access to knowledge on how to manage modern businesses in the formal sector of the economy. In combination with African resources and systems, such knowledge enables them to create and sustain and competitive advantage in modern dynamic marketplaces. Endogenous African businesses are important because they have the potential to fuel economic growth, to revitalize rural areas, to contribute to food security and healthy diets, and to provide role models of which Africans can be proud. Hence, these businesses deserve our attention in the next two decades of scholarly research and education on African business.

Market Development for African Endogenous Products

“…The KG case is in that respect typical as it uniquely grows in a particular ecological zone in West Africa. Ingenbleek (2019) further explains how Africa’s main North-South axis gave as one of the biogeographic factors rise to the typical traits of Africa’s marketing system. Our study shows that Africa’s geographic characteristics have provided the continent with unique products that offer not only economic, but also cultural and social types of value.…”

“…Ingenbleek (2019, p. 201) called in that respect for more research on African endogenous businesses, which are businesses that aim to “create and sustain competitive advantage by integrating Africa’s endogenous natural resource advantages and the economic, social and cultural systems that build on them with modern business practices.” Endogenous products and services can be seen as the outputs of endogenous businesses. The KG case is in that respect typical as it uniquely grows in a particular ecological zone in West Africa.…”

“…By conceptualizing market development in Africa, the study provides insights into the stages of market development, the conditions of occurrence of these stages, and it gives guidance on supply development to fulfil market demand. As such, it also contributes to the thinking on African endogenous businesses (Ingenbleek 2019) in that it explains how such businesses may cope with market fragmentation without investing the large marketing budgets that multinationals can invest. The second contribution of this study is that it adds to the use of the 4As-model in market development.…”

“…Exploiting the nutritional-, medical- and economic potential of endogenous products is an opportunity to promote African economies and combat malnutrition (Ayenan and Ezin 2016; Chivenge et al 2015). Endogenous African products stem from within the natural, socio-cultural and economic systems in Africa (Ingenbleek 2019) and include in particular neglected and underutilized food products, such as leafy vegetables, legumes, fruits and edible roots that have been maintained for their cultural and traditional value (Dansi et al 2012; Gruère, Nagarajan, and King 2009). They, therefore, not only increase consumers’ quality of life as they diversify diets, but they may also help to improve food security because they provide vital nutrients (Manap 2015).…”

“…They, therefore, not only increase consumers’ quality of life as they diversify diets, but they may also help to improve food security because they provide vital nutrients (Manap 2015). Because they draw on Africa’s rich diversity of natural resources (Meredith 2014) they constitute a source of sustainable competitive advantage for African firms (Ingenbleek 2019) and can play a crucial role in the income generation of small-scale farmers in Africa (Dansi et al 2012). By enlarging the demand for endogenous products, Africa’s heritage is therefore leveraged to help shape its future.…”