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Indigenous Ethnicity and Entrepreneurial Success in Africa

Indigenous Ethnicity and Entrepreneurial Success in Africa PDF Author: Taye Mengistae
Publisher:
ISBN:
Category :
Languages : en
Pages : 27

Book Description
January 2001Manufacturing businesses owned by an indigenous ethnic group, the Gurage, typically perform better than those of members of any other (major or minority) groups in Ethiopia. Gurage-owned businesses are normally larger and grow faster. Yet Gurage business owners typically are less educated than their counterparts in other groups and have less formal vocational training.Researchers have recently been asking why Asian and European minorities in Africa seem to be more successful in business than are people of indigenous ethnicity. Mengistae draws attention to the significant disparity in business ownership and performance that seems to exist among African ethnic groups as well.After analyzing a random selection of small to medium-size manufacturers in Ethiopia, he finds that establishments owned by an indigenous minority ethnic group, the Gurage, typically perform better than those owned by other (major or minority) groups.Other things being equal, Gurage-owned businesses are normally larger, partly because they are bigger as start-ups and partly because they grow faster. And yet Gurage business owners are the least educated ethnic group in the sample. Because the size and growth rate of a business also increases with the entrepreneur's education, the performance of other businesses would have been even worse if their owners hadn't been better educated than the Gurage. Indeed, dropping education variables from the size determination equation drastically reduces the estimated advantage of Gurage-run businesses.This suggests that the observed effect of ethnicity could be indicative of intergroup differences in unmeasured ability. More important, it means that whether or not the effect will persist in the long run will depend on the trend in interethnic differences in investment in education.This paper - a product of Macroeconomics and Growth, Development Research Group - is part of a larger effort in the group to investigate the microeconomic foundation of the association between ethnic diversity and the poor growth performance that seems to characterize Sub-Saharan Africa. The study was funded by the Bank's Research Support Budget under the research project quot;The Economics of Ethnicity and Entrepreneurship in Africa.quot; The author may be contacted at [email protected].

Indigenous Ethnicity and Entrepreneurial Success in Africa

Indigenous Ethnicity and Entrepreneurial Success in Africa PDF Author: Taye Mengistae
Publisher:
ISBN:
Category :
Languages : en
Pages : 27

Book Description
January 2001Manufacturing businesses owned by an indigenous ethnic group, the Gurage, typically perform better than those of members of any other (major or minority) groups in Ethiopia. Gurage-owned businesses are normally larger and grow faster. Yet Gurage business owners typically are less educated than their counterparts in other groups and have less formal vocational training.Researchers have recently been asking why Asian and European minorities in Africa seem to be more successful in business than are people of indigenous ethnicity. Mengistae draws attention to the significant disparity in business ownership and performance that seems to exist among African ethnic groups as well.After analyzing a random selection of small to medium-size manufacturers in Ethiopia, he finds that establishments owned by an indigenous minority ethnic group, the Gurage, typically perform better than those owned by other (major or minority) groups.Other things being equal, Gurage-owned businesses are normally larger, partly because they are bigger as start-ups and partly because they grow faster. And yet Gurage business owners are the least educated ethnic group in the sample. Because the size and growth rate of a business also increases with the entrepreneur's education, the performance of other businesses would have been even worse if their owners hadn't been better educated than the Gurage. Indeed, dropping education variables from the size determination equation drastically reduces the estimated advantage of Gurage-run businesses.This suggests that the observed effect of ethnicity could be indicative of intergroup differences in unmeasured ability. More important, it means that whether or not the effect will persist in the long run will depend on the trend in interethnic differences in investment in education.This paper - a product of Macroeconomics and Growth, Development Research Group - is part of a larger effort in the group to investigate the microeconomic foundation of the association between ethnic diversity and the poor growth performance that seems to characterize Sub-Saharan Africa. The study was funded by the Bank's Research Support Budget under the research project quot;The Economics of Ethnicity and Entrepreneurship in Africa.quot; The author may be contacted at [email protected].

Indigenois Ethnicity and Entrepreneurial Success in Africa

Indigenois Ethnicity and Entrepreneurial Success in Africa PDF Author: Taye Mengistae
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 32

Book Description
January 2001 Manufacturing businesses owned by an indigenous ethnic group, the Gurage, typically perform better than those of members of any other (major or minority) groups in Ethiopia. Gurage-owned businesses are normally larger and grow faster. Yet Gurage business owners typically are less educated than their counterparts in other groups and have less formal vocational training. Researchers have recently been asking why Asian and European minorities in Africa seem to be more successful in business than are people of indigenous ethnicity. Mengistae draws attention to the significant disparity in business ownership and performance that seems to exist among African ethnic groups as well. After analyzing a random selection of small to medium-size manufacturers in Ethiopia, he finds that establishments owned by an indigenous minority ethnic group, the Gurage, typically perform better than those owned by other (major or minority) groups. Other things being equal, Gurage-owned businesses are normally larger, partly because they are bigger as start-ups and partly because they grow faster. And yet Gurage business owners are the least educated ethnic group in the sample. Because the size and growth rate of a business also increases with the entre-preneur's education, the performance of other businesses would have been even worse if their owners hadn't been better educated than the Gurage. Indeed, dropping education variables from the size determination equation drastically reduces the estimated advantage of Gurage-run businesses. This suggests that the observed effect of ethnicity could be indicative of intergroup differences in unmeasured ability. More important, it means that whether or not the effect will persist in the long run will depend on the trend in interethnic differences in investment in education. This paper--a product of Macroeconomics and Growth, Development Research Group--is part of a larger effort in the group to investigate the microeconomic foundation of the association between ethnic diversity and the poor growth performance that seems to characterize Sub-Saharan Africa. The study was funded by the Bank's Research Support Budget under the research project "The Economics of Ethnicity and Entrepreneurship in Africa." The author may be contacted at [email protected].

Race and Entrepreneurial Success

Race and Entrepreneurial Success PDF Author: Robert W. Fairlie
Publisher: MIT Press
ISBN: 0262260670
Category : Business & Economics
Languages : en
Pages : 253

Book Description
A comprehensive analysis of racial disparities and the determinants of entrepreneurial performance—in particular, why Asian-owned businesses on average perform relatively well and why black-owned businesses typically do not. Thirteen million people in the United States—roughly one in ten workers—own a business. And yet rates of business ownership among African Americans are much lower and have been so throughout the twentieth century. In addition, and perhaps more importantly, businesses owned by African Americans tend to have lower sales, fewer employees and smaller payrolls, lower profits, and higher closure rates. In contrast, Asian American-owned businesses tend to be more successful. In Race and Entrepreneurial Success, minority entrepreneurship authorities Robert Fairlie and Alicia Robb examine racial disparities in business performance. Drawing on the rarely used, restricted-access Characteristics of Business Owners (CBO) dataset compiled by the U.S. Census Bureau, Fairlie and Robb examine in particular why Asian-owned firms perform well in comparison to white-owned businesses and black-owned firms typically do not. They also explore the broader question of why some entrepreneurs are successful and others are not. After providing new comprehensive estimates of recent trends in minority business ownership and performance, the authors examine the importance of human capital, financial capital, and family business background in successful business ownership. They find that a high level of startup capital is the most important factor contributing to the success of Asian-owned businesses, and that the lack of startup money for black businesses (attributable to the fact that nearly half of all black families have less than $6,000 in total wealth) contributes to their relative lack of success. In addition, higher education levels among Asian business owners explain much of their success relative to both white- and African American-owned businesses. Finally, Fairlie and Robb find that black entrepreneurs have fewer opportunities than white entrepreneurs to acquire valuable pre-business work experience through working in family businesses.

Handbook of Research on Entrepreneurial Success and its Impact on Regional Development

Handbook of Research on Entrepreneurial Success and its Impact on Regional Development PDF Author: Carvalho, Luísa
Publisher: IGI Global
ISBN: 1466695684
Category : Business & Economics
Languages : en
Pages : 1056

Book Description
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The Routledge Companion to Business in Africa

The Routledge Companion to Business in Africa PDF Author: Sonny Nwankwo
Publisher: Routledge
ISBN: 1136202501
Category : Business & Economics
Languages : en
Pages : 625

Book Description
Although the world's poorest inhabited continent, Africa has recently shown signs of being a source of economic growth in the coming decades, with increased foreign investment - notably from China - and huge growth in GDP from a number of African states. In contrast to the heaving weight of books focusing on business opportunities in Asia, Eastern Europe and Latin America, Africa has been poorly served by academic publishing. This compendium of scholarship offers cutting-edge knowledge relating to business in Africa. The objectives of this collection include: To shed new light on the socio-cultural and historical underpinnings of business practice in Africa and their implications for promoting entrepreneurship and business behaviour in the region To consider the important constraints on business activities in Africa, and the emerging 'best practice' for redressing their real and potential impacts To facilitate a better understanding of contemporary business practice in Africa through the application of relevant theories and models, including emergent ones. The Routledge Companion to Business in Africa is a comprehensive reference resource that provides the perfect platform for embarking on research and study into Africa from the business perspective.

Casebook of Indigenous Business Practices in Africa

Casebook of Indigenous Business Practices in Africa PDF Author: Ogechi Adeola
Publisher: Emerald Group Publishing
ISBN: 1802622519
Category : Business & Economics
Languages : en
Pages : 289

Book Description
Africa’s unique and diverse culture, embedded in age-long business practices, presents an interesting proposition for advancing indigenous knowledge and building sustainable structures. Casebook of Indigenous Business Practices in Africa is a collection of case studies across Northern, Eastern, Central, Western and Southern Africa.

Africa's Private Sector

Africa's Private Sector PDF Author: Vijaya Ramachandran
Publisher: CGD Books
ISBN: 1933286288
Category : Business & Economics
Languages : en
Pages : 138

Book Description
Why is the private sector yet to take off in much sub-Saharan Africa? Drawing on a unique set of enterprise surveys, Vijaya Ramachandran and her co-authors identify the biggest obstacles: inadequate infrastructure (especially unreliable electricity and crumbing roads) and burdensome regulation. They then show how ethnic minorities dominate the private sector in many countries, inhibiting competition and demands for a better business environment, and thus impeding the emergence of an entrepreneurial middle class. Based on this careful diagnosis, the authors suggest investing in infrastructure and reforming regulation to lower the cost of doing business, and increasing the access to education of a broader-based business class that crosses ethnic divides. Book jacket.

Challenges of African Growth

Challenges of African Growth PDF Author: B. J. Ndulu
Publisher: World Bank Publications
ISBN: 0821368834
Category : Business & Economics
Languages : en
Pages : 280

Book Description
Poverty in Africa is largely the outcome of slow growth. With the region hosting 10 percent of the world's population but a staggering 30 percent of the world's poor, the challenges it faces are enormous but NOT insurmountable. The message of this book is clear - poverty-eradicating development in Africa is possible. In fact, there are indications that Africa is at a turning point, and there is growing momentum among front-runner economies in the region toward higher and sustained growth. This study challenges African countries and their development partners to consolidate and continue this momentum and to exploit the advantages of the continent as a latecomer, particularly in innovation and in drawing lessons from successful export-led growth experiences in Asia and Latin America. "Challenges of African Growth" identifies opportunities, constraints, and strategic choices that African countries face in their quest for achieving the growth necessary for poverty alleviation. More important, the study provides a broad menu of stategic options for ensuring not only that countries embark on a growth path, but also that the growth is shared and sustainable. The critical areas for action rest on four pillars: the investment climate; infrastructure; innovation for increasing productivity and competitiveness; and institutional capacity.

International Handbook of Research on Indigenous Entrepreneurship

International Handbook of Research on Indigenous Entrepreneurship PDF Author: L. -P. Dana
Publisher: Edward Elgar Publishing
ISBN: 1781952647
Category : Business & Economics
Languages : en
Pages : 635

Book Description
This book offers an original collection of international studies on indigenous entrepreneurship. Through these specific lenses, entrepreneurship greatly appears as a set of cultural values-based behaviours. Once more culture and human values are placed at the heart of entrepreneurship as an economic and social phenomenon.'. - Alain Fayolle, EM Lyon and CERAG Laboratory, France and Solvay Business School, Belgium. `A must-have for researchers of developmental economics, as well as for entrepreneurship scholars, this collection assembles studies of indigenous entrepreneurship from five continent.

Indigenous African Enterprise

Indigenous African Enterprise PDF Author: Ogechi Adeola
Publisher: Emerald Group Publishing
ISBN: 1839090332
Category : Social Science
Languages : en
Pages : 288

Book Description
This book examines an indigenous Africa-centric business model practised by the Igbos of south-eastern Nigeria for decades. The unique framework and rules of operation, collectively referred to as the Igbo-Traditional Business School (I-TBS) in this book, is underpinned by the ‘Igba-boi’ apprenticeship.