Entrepreneurship in Africa : More a disillusionment than an opportunity

Entrepreneurship in Africa : More a disillusionment than an opportunity

           

The African continent is the one which witnesses the most significant population growth in the world. According to the forecasts , its population  should reach about 2 or 3 billion people by 2050. I f we add that , the majority of this population is mainly young, it’s obvious that carrying out the needs in terms of employment, education , and nutrition seems already to be  impossible. Nevertheless, for the young person that I am , I want to remain optimistic and believe in a burst of hope_entrepreneurship

And this not because it’s a new phenomenon but because for several years now while we have noticed disinterest of many governments in matters of employment, many success stories of young entrepreneurs impel a wind of change in the economic landscape of the continent.

Who is an entrepreneur ? 

·        Someone who identifies unfulfilled needs

·        Acts to satisfy them

·        And gains a profit.

However, the word don’t have the same resonance everywhere. Elsewhere it’s chosen but in Africa it’s often a last resort,  one means among others to survive which is not only very revealing , but also very indicative of why these initiatives are not last longing . The explanations to this situation can be differents

Thinking differently against collectivism

The majority of African cultures have a model of society based on collectivism. Consequently , any sort of initiative which aim to go beyond the beaten paths of the usual conformist thinking represents a danger. As a consequence , launching a new business that is in conflict with the traditional beliefs or habits of the community is not always easy. Even if this doesn’t correspond to thee reality of all the countries and needs to be qualified.

Lack of commitment

As we have mentioned above , embarking on an entrepreneurial venture is not chosen for many young Africans, it’s a question of survival. The creation of an activity is not motivated by the wish of satisfying unfulfilled needs but rather by profit seeking which can lead to lose sight of an important  parameter : it’s extremely rare for a new business to become profitable immediately. Generally it takes a moment before starting to earn money especially if we know that entrepreneurs create mostly a new offer. Therefore, the demand can take a long time before taking off. This phenomenon generates a lack of commitment which is expressed by despondency.

Lack of risk : annuity economy

The funds invested in entrepreneurship don’t generate sufficient added value. The reason is that the activities which are launched don’t create. We reproach African entrepreneurship  for being too cautious. People are more likely to invest in the least risky businesses  like annuity economy for instance.

Resistance of the entourage

The entourage have a tendency to be very conservative and will prefer that a young man who has a stable life with a job keeps it instead of setting  up a business whose success is not guaranteed.   
       

The business environment

The African business environment is one of the worst in the world. This situation is due to many problems such as corruption  bureaucracy  red tape   political instability, gender inequality ; to mention just a few. Furthermore  due to globalization, the few initiatives which are taken struggle to be durable given that local entrepreneurs have to be in competition with foreign investors.

Source of funding

The continent witnesses the highest interest rate in the world. While elsewhere they approach almost O%, in countries like Ghana but also Nigeria and Egypt it is approches 10% which is inaccessible for many young business owners. Furthermore, taking out a loan requires administrative procedures and documentation to inform the banks not only about the viability of a project but also about its legality  especially if we know that many businesses are informal. Business operators also are not always aware about other sources of funding like micro finance.

All these problems raised make us think that despite all the optimism which surrounds African entrepreneurship , it’s necessary to implement real politicies which will resorb unemployment.

 

IBRAHIMA N