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Social Entrepreneurship, Microfinance, and Economic Development in Africa

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  • Berhanu Nega
  • Geoffrey Schneider

Abstract

This paper analyzes the potential impact of social entrepreneurship, and especially microfinance, on development in Africa. Social entrepreneurship could play an important role in development. However, social entrepreneurship has limited potential for structural transformation and poverty alleviation, which calls into question the recent prioritization of social entrepreneurship. Furthermore, social entrepreneurship can undermine support for state-led development and democratic reforms that are the preconditions necessary for structural transformation and long-term, large-scale development. Thus, social entrepreneurship is best seen as a useful microeconomic strategy that can contribute to development in small ways, but that cannot possibly replace a democratic developmental state.

Suggested Citation

  • Berhanu Nega & Geoffrey Schneider, 2014. "Social Entrepreneurship, Microfinance, and Economic Development in Africa," Journal of Economic Issues, Taylor & Francis Journals, vol. 48(2), pages 367-376.
    • Handle: RePEc:mes:jeciss:v:48:y:2014:i:2:p:367-376
    DOI: 10.2753/JEI0021-3624480210
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    Cited by:

    1. EuiBeom Jeong & Hanna Yoo, 2022. "A systematic literature review of women in social entrepreneurship," Service Business, Springer;Pan-Pacific Business Association, vol. 16(4), pages 935-970, December.
    2. Heidy Rico & Florentino Rico & Mario de la Puente & Carlos De Oro & Elkyn Lugo, 2022. "SBL Effectiveness in Teaching Entrepreneurship Skills to Young Immigrant Mothers Head of Household in Colombia: An Experimental Study," Social Sciences, MDPI, vol. 11(4), pages 1-19, March.
    3. Asma Salman, 2018. "Micro-Finance: A Driver for Entrepreneurship," Chapters, in: Silvio Manuel Da Rocha Brito (ed.), Entrepreneurship - Trends and Challenges, IntechOpen.
    4. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    5. Malavika Nair & Martha Njolomole, 2020. "Microfinance, entrepreneurship and institutional quality," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(1), pages 137-148, January.
    6. M.K. Nandakumar, 2020. "Hybridity in Social Enterprises," Working papers 364, Indian Institute of Management Kozhikode.
    7. Gupta, Parul & Chauhan, Sumedha & Paul, Justin & Jaiswal, M.P., 2020. "Social entrepreneurship research: A review and future research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 209-229.
    8. Liu, Aiping & Urquía-Grande, Elena & López-Sánchez, Pilar & Rodríguez-López, Ángel, 2023. "Research into microfinance and ICTs: A bibliometric analysis," Evaluation and Program Planning, Elsevier, vol. 97(C).

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