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Entrepreneurship, a catalyst to Africa’s economic transformation

04.10.2018
A wind of change is blowing across the African continent; Africa is undergoing a social, political and economic revolution in a bid to bring economic growth, monetary dependence as well as political stability. Youth entrepreneurship is at the forefront, if the continent has to attain this milestone. Given the endowment of the continent especially in human capital, many young vibrant African Youths have engaged in entrepreneurial oriented fields through innovations in diverse areas like Energy, Finance; Agriculture, Consultancy, communications and what have you. What therefore is the role of entrepreneurship or how do entrepreneurs foster economic transformation of Africa’s economies?

The plight of every nation is to see real economic growth that can uplift the living standards of its citizens. An entrepreneur brings and contribute to economic development is a rapid manner. According to a young Cameroonian Social Entrepreneur, Empowerment Strategist, Corporate Trainer/Consultant, Javnyuy Joybert, Entrepreneurship is the creation of value, creating innovative solutions to challenge problems. The growth of every economy is thus determined by the amount of value the people in that economy can create. The acquisition of entrepreneurial mindset and skills leads to the creation of value and opportunities, playing a significant role in shaping the landscape of a country’s economy. Entrepreneurship is therefore a vital tool if we want to unlock economic growth, create employment and reduce poverty in the African continent.

It would be unwise to talk of development without entrepreneurship surfacing. An entrepreneur therefore contributes to economic development in the following ways; increase in employment rate, an increase in the total revenue of a state or government. This is very visible through the tax paid to local governments by existing enterprises which in turn increase government’s revenue. However, even though a high taxation policy greatly adds to government’s revenue, it also discourages start-up businesses. Entrepreneurs increase the national income of a state.

Most importantly, entrepreneurship is a boost to economic development through what we call Invisible hands. This entails that the opening of an enterprise fosters other developments in the areas. A clear example is the Dangote Cement factory in the Republic of Cameroon which has indirectly favoured the construction of the road network around the area, thus spurring economic development. Through innovations and risk taking, entrepreneurs stand as a catalyst to job creation and boost development through new technologies, products and service.

Most notably, entrepreneurship encourages competition among existing firms and they become more competitive and productive as well.  In a nutshell, there can’t be development in Africa without the involvement of innovative entrepreneurs. Therefore, the emergence of modern-day entrepreneurs in Africa is a great boost to its development and enhancement. This has to be done in a climate of African development not in the context of copying from others. African entrepreneurship must respond to the high need of Africans. With more entrepreneurs, Africa can be ready to attain the sustainable economic growth. It is only in this that we can say entrepreneurship can boost Africa’s development.

Article of the AFRIC editorial

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