The Role of Institutions in Entrepreneurial Ecosystem in Sub-Saharan Africa

Oladipo Ibikunle and Olateju Idowu Adegboyega ()
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Olateju Idowu Adegboyega: Department of Management & Accounting, Postal: Lead City University, Ibadan, Nigeria,, https://www.lcu.edu.ng/index.php/lead-city-journal-of-the-social-sciences

Lead City Journal of the Social Sciences (LCJSS), 2023, vol. 8, issue 3, 104-118

Abstract: Entrepreneurship is widely recognized as a critical driver of economic growth and development, particularly in Sub-Saharan Africa (SSA). However, the success of entrepreneurs in this region is heavily influenced by the institutional environment in which they operate. This paper explores the role of institutions in the entrepreneurial ecosystem in SSA and provides recommendations for policymakers and other stakeholders to enhance institutional support for entrepreneurs. However, these factors are often inadequate or underdeveloped in SSA. It was revealed that policymakers prioritize institutional reforms in these areas, such as simplifying business registration procedures, improving access to credit for small and medium-sized enterprises, and investing in education and training programs to build the skills of entrepreneurs. Access to capital, poor infrastructure, lack of skilled labour, corruption, among others, were some of the challenges of entrepreneurial ecosystem in Nigeria and some other sub-saharan African countries. Furthermore, it is surmised that institutions alone are not enough to foster a thriving entrepreneurial ecosystem. Social norms and cultural attitudes towards entrepreneurship also play a significant role. To this end, the paper recommends that policymakers should invest in initiatives to promote entrepreneurship and change attitudes towards risk-taking and failure. In conclusion, the role of institutions in the entrepreneurial ecosystem in SSA cannot be overstated. By prioritizing institutional reforms and promoting a culture of entrepreneurship, policymakers and other stakeholders can create an environment that supports and nurtures entrepreneurship, leading to sustainable economic growth and development in the region.

Keywords: Institution; Entrepreneurship; Entrepreneurial ecosystem; Sub-saharan Africa (search for similar items in EconPapers)
Date: 2023
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