Political instability and African entrepreneurship.
Date
1993-10
Authors
Ahwireng - Obeng, Frederick
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Abstract
Several close observers of African economic development believe that political
instability (PI) has stunted economic progress in Africa by decreasing entrepreneurial activity. However, whether African entrepreneurs themselves
regard PI as an obstacle or an opportunity, how they respond to it and how it
affects their behaviour as entrepreneurs are questions yet unanswered. This
inquiry is the central focus of the paper. The evidence from the African
business and political literature, periodicals and newspapers suggests
no direct relationships between PI, the volume of entrepreneurial
activity and national welfare. On the other hand, different kinds of PI tend
to create different sets of opportunity conditions for profitable
entrepreneurial, initiatives. African entrepreneurs have responded rationally
to potentially high private pay-offs resulting from PI and resorted to
survival strategies to offset perceived and real obstacles. A considerable
part of these initiatives are socially unproductive, suggesting the need for
African governments to forge mutually beneficial coalitions with entrepreneurs
in order to increase national welfare. The real problem is whether reliable
coalitions are feasible.
Description
African Studies Seminar series. Paper presented, October 1993.
Keywords
Economic developement. Political aspects. Africa, Political stability. Africa