African Entrepreneurs and International Coordination in Petty Businesses: The Case of Low-End Mobile Phones Sourcing in Hong Kong
Fu Lai Tony Yu and
Diana S. Kwan
Journal of African Business, 2015, vol. 16, issue 1-2, 66-83
This paper examines the contribution of African entrepreneurs to world trade through global coordination. Unlike the multinational giants which earn impressive profit through global sourcing, small African entrepreneurs survive by identifying opportunities in petty businesses and exploiting narrow profit margin. Through careful economic calculation, they buy low-end goods from one part of the globe and sell them in the other part. Their self-interest activities enhance global well-being. This paper begins with an Austrian perspective of international entrepreneurship and global coordination. The theory is illustrated by African entrepreneurs who source Shenzhen-made mobile phones in Hong Kong and sell them in Africa. By arbitraging price differentials, they earn pure entrepreneurial profit. A detailed case study of the global coordination of a Tanzanian entrepreneur will be presented. This paper concludes that, as a result of the effort of African entrepreneurs, low-end mobile phones manufactured in Shenzhen are shipped to Hong Kong and consumed by people in Tanzania, bringing benefits to all parties concerned. The case study fully illustrates the principle of the 'invisible hand' in the global market.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:wjabxx:v:16:y:2015:i:1-2:p:66-83
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of African Business is currently edited by Samuel Bonsu
More articles in Journal of African Business from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().