Statistics from the African Development Bank (ADB) indicate that 22 per cent of African working-age population are starting businesses, and Sub-Sahara Africa constitutes 8,4% of that population.
African female entrepreneurs constitute the highest number of female entrepreneurs in the world, that’s twice the number of female entrepreneurs found in other continents because they have limited access to the formal sector of employment; hence they resort to starting their own small businesses for survival.
A lot of Africans are pushed into entrepreneurship by unemployment or underemployment with over 20% of formal employees in Africa are employed by Small and Medium Enterprises (SMEs) and this sector is undoubtedly going to contribute to the 54 million jobs which Africa is expected to provide by 2022.
Meanwhile, African entrepreneurship greatly affected by lack of financial support and costly access to electricity posed by lack of direct support from governments in Africa hence limiting the growth and expansion of small business startups in Africa.
The legislation also hinders the establishment of high entrepreneurial business startups as most small firms are limited by licensing systems as well as taxes imposed on them by the government.
Economists have predicted that the African economy can grow to be the world’s most vibrant economy as it has a committed labour force and plenty of raw materials. This can be possible if supportive schemes are set to assist the growing entrepreneurs in Africa financially. Innovation hubs can also be set to grow and develop brilliant ideas.
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