Accelerating Entrepreneurship in Africa

Abstract

Accra, and the conclusions of the third and final phase of the initiative: the recom-mended actions needed to accelerate entrepreneurship on the continent. We are pleased to report that a culture of entrepreneurship is growing in sub-Saharan Africa, with indicators related to entrepreneurial motivation on par with or higher than global peers. However, despite these positive signs, the business landscape in the region presents a number of challenges that prospective entrepre-neurs must transcend. We outline the opportunities and challenges Africa's entre-preneurial ecosystem is facing, and the key practices that we believe will spur the continent forward. ENTREPRENEURSHIP ASSETS: FINANCING, SKILLS AND TALENT, AND INFRASTRUCTURE Financing A supply of and access to capital are critical to stimulating entrepreneurship and economic growth. The International Finance Corporation estimates that up to 84 percent of small and midsize enterprises (SMEs) in Africa are either unserved or underserved, representing a value gap in credit financing of US$140-$170 billion. 2 In the Monitor survey, challenges related to accessing finance drew mixed percep-tions from the demand and supply sides. Seventy-one percent of respondents believe that not enough equity capital exists to start new firms, but while many " Afro-entrepreneurs " bemoan a limited supply of capital, financiers point out that many projects simply are not fundable. Of the six countries surveyed, Kenya seems to fare the best in terms of capital supply, given that only 52 percent of Kenyan respondents highlight this as a challenge.