Firm Growth Expectations: The African Entrepreneurship Story

Development partners have highlighted entrepreneurship as a vehicle that will end the poverty cycle in Sub Saharan Africa (SSA). Based on a study of 10,160 entrepreneurs in ten AngloSub Saharan African countries, the study... [ view full abstract ]

Development partners have highlighted entrepreneurship as a vehicle that will end the poverty cycle in Sub Saharan Africa (SSA). Based on a study of 10,160 entrepreneurs in ten AngloSub Saharan African countries, the study explains growth expectation through background attributes national policy and social beliefs. Using hierarchical modelling to test and estimate effects upon individual behaviour from both macro and microlevel. It reveals that in Africa, the male educated individual in a high incomehousehold is more likely to have growth expectations. And that overall, countries with cultural norms that support entrepreneurship and policies that pay attention to innovation have a positive significant effect on growth expectations. Furtherstill it displays that presence of cultural and social norms that support entrepreneurship in a country enhances the relationship between background of an entrepreneur and high growth expectations. This work presents evidence that is useful for policy formulation.