NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Researchers present empirical evidence questioning the effectiveness of the entrepreneurial ecosystems approach in lagging countries in Africa

The entrepreneurial ecosystems (EE) approach is often promoted for Africa’s growth, but Africa already has many entrepreneurs. Instead of increasing entrepreneurship, researchers argue for strategies drawn from East Asia’s development and Schumpeterian growth theory—both of which oppose EE thinking. These approaches suggest that Africa should focus on building large, productive firms and absorbing existing technologies, rather than relying on start-ups, to achieve long-term, sustainable economic development.

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