The Legatum Institute has recently released an interesting report entitled The Prosperity Index in Africa. Another very good reason to be an entrepreneur in today’s Africa.
“The entrepreneurial landscape in Africa is multi-faceted. It includes informal and formal sector, traditional and modern, as well as local and foreign-owned enterprises, all of which are geographically dispersed across rural and urban areas.’
There is now a well-accepted notion that Small and Medium Enterprises – SMEs – form the core of economic development in Africa, contributing to the growth of national GDPs.
This is even truer in Sub-Sahara countries, where ‘increased foreign direct investment, rising basic commodities prices, and the growth of export-led industries have all continued to aid economic development. More importantly, however, are the liberal economic reforms and reductions in government expenditures that have helped to foster a new entrepreneurial culture, allowing SMEs to drive new growth in the region.’ (source: The Legatum Institute).
The Prosperity Index shines a torch on the relationship between entrepreneurship and prosperity. Based on a country’s wealth and the wellbeing of its inhabitants, it highlights how sustained entrepreneurship plays a role in the overall ‘health’ of a specific country.
It also explains what obstacles African entrepreneurs may face such like:
‘weak rule of law, unrecognized property rights, and a lack of security.’ As underlined: ‘Unless these challenges are addressed, economic growth and wellbeing will be difficult to foster in these countries.’
The 2010 Legatum Prosperity Index then points out two areas that can be catalysts for change:
ICT development and increased access to opportunity.
The report goes on, giving an overlook of country-by-country’s states based on their economy, education, entrepreneurship and opportunities, governance, health, personal freedom, safety security and social capital. The results can be surprising.
The need to celebrate and foster successful entrepreneurship has never been so crucial.
If you are interested to read further then view the Full Report or visit the website Legatum Institute for more information.
