Africapitalism in action: harnessing entrepreneurship and innovation for Africa’s socioeconomic transformation

Emma Parrott, Renato Pereira, Hajer Jarrar, Virginie Hachard () and Matteo Rossi
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Emma Parrott: ISCTE - University Institute of Lisbon
Renato Pereira: ISCTE - University Institute of Lisbon, ESAN - Universidad ESAN
Hajer Jarrar: CERIIM - Centre de Recherche en Intelligence et Innovation Managériales - Excelia Group | La Rochelle Business School
Virginie Hachard: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
Matteo Rossi: University of Sannio [Benevento]

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Abstract: Purpose This paper explores how digital entrepreneurship is reshaping informal economies in Sub-Saharan Africa, introducing the novel theoretical construct of "transformative informality" – derived from grounded empirical data – to explain how indigenous entrepreneurial practices, digital infrastructure and innovation ecosystems interact to mitigate socioeconomic hardship and to identify context-specific models that challenge Western-centric assumptions. Design/methodology/approach The study adopts a qualitative interpretive approach, drawing from secondary data, policy reviews and empirical literature. These sources are complemented by grounded field observations that empirically anchor the proposed concept. Grounded in African-centred development theory and institutional perspectives, it develops an analytical framework that links informal entrepreneurship, digital innovation and ecosystem dynamics. Findings Findings highlight the dual nature of digital entrepreneurship: while it enables market access, flexibility and micro-innovation, it often fails to secure formal integration due to institutional voids. Nevertheless, emergent hybrid models rooted in community-based logic and digital adaptation offer promising alternatives for inclusive growth, particularly among youth and women. Research limitations/implications Limited availability of longitudinal empirical data across African regions constrains generalizability. Further fieldwork could refine the typology and test its transferability. Practical implications Policymakers should embrace informality as a site of innovation and develop supportive infrastructure and financing mechanisms tailored to hybrid ventures. Social implications Supports inclusive, culturally embedded entrepreneurship as a lever for structural transformation. Originality/value This paper challenges dominant formalization narratives by introducing and empirically substantiating the concept of "transformative informality", rooted in local realities and digital agency. It contributes a typology that connects grassroots digital innovation with entrepreneurial ecosystem dynamics.

Keywords: Transformative informality; Socioeconomic resilience; Hybrid models; African innovation; Informal economy; Digital entrepreneurship (search for similar items in EconPapers)
Date: 2025-09-16
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Published in International Journal of Entrepreneurial Behaviour and Research, 2025, pp.1-25. ⟨10.1108/IJEBR-04-2025-0511⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05398983

DOI: 10.1108/IJEBR-04-2025-0511

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