Africa needs more large firms, not more entrepreneurs, for economic growth
Peer-Reviewed Publication
Updates every hour. Last Updated: 9-Sep-2025 21:11 ET (10-Sep-2025 01:11 GMT/UTC)
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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