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Infrastructure And Entrepreneurship: Evidence From Africa

Author

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  • FOLORUNSHO M. AJIDE

    (Department of Economics, University of Ilorin, Ilorin, Nigeria)

Abstract

Closing the infrastructural gaps and fostering the entrepreneurial processes are considered the key to reduce African unemployment and boost productivity to achieve inclusive development. Therefore, investment in infrastructure is crucial for creating a conducive entrepreneurial environment. In this paper, we provide a contribution for this purpose, by evaluating the impact of infrastructure on entrepreneurship in a panel of twenty African countries for a period of 2006–2018. Consistent with previous studies, we find that infrastructures play a significant role in improving entrepreneurial development. In specific, we show that transport, electricity, water and sanitation facilities, ICT and broadband infrastructures have a positive and significant effect on entrepreneurial startups in Africa. Our reports show clearly there is a positive association between infrastructures and entrepreneurial startups at a one percent significance level. These findings are robust to alternative estimation. It points out that physical infrastructure is more relevant in the case of less developed countries in promoting entrepreneurial development.

Suggested Citation

  • Folorunsho M. Ajide, 2020. "Infrastructure And Entrepreneurship: Evidence From Africa," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 25(03), pages 1-23, September.
    • Handle: RePEc:wsi:jdexxx:v:25:y:2020:i:03:n:s1084946720500156
    DOI: 10.1142/S1084946720500156
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    Citations

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    Cited by:

    1. Folorunsho M. Ajide, 2023. "Institutions and Entrepreneurship in Africa: Does Democracy Matter?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(3), pages 553-589, November.
    2. Lan, Xiujuan & Hu, Zheneng & Wen, Chuanhao, 2023. "Does the opening of high-speed rail enhance urban entrepreneurial activity? Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    3. Aristizábal, Juan & Tarapuez, Edwin & Hidalgo, Mario, 2023. "A multilevel approach to understanding the relationship between entrepreneurship and the urban environment: empirical evidence from Colombia [Un enfoque multinivel para comprender la relación entre," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 35(1), pages 311-329, June.
    4. Pelz, Setu & Pachauri, Shonali & Falchetta, Giacomo, 2023. "Short-run effects of grid electricity access on rural non-farm entrepreneurship and employment in Ethiopia and Nigeria," World Development Perspectives, Elsevier, vol. 29(C).
    5. Brice Kamguia & Manuella Ndjakwa & Sosson Tadadjeu, 2023. "Does infrastructural development foster export upgrading in Africa?," African Development Review, African Development Bank, vol. 35(1), pages 79-94, March.
    6. Li, Yutao & Zhang, Jinning & Lyu, Yanwei, 2023. "Does telecommunications infrastructure promote entrepreneurship in developing countries? Evidence from a quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 106-119.
    7. Dhahri, Sabrine & Slimani, Sana & Omri, Anis, 2021. "Behavioral entrepreneurship for achieving the sustainable development goals," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    8. Joseph Ochieng Onginjo & Zhou Dong Mei, 2023. "A study on the social and economic sustainability of rewards-based crowdfunding in Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9619-9646, September.

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