An Economic Sociology of African Entrepreneurial Activity

ABSTRACTThis paper outlines a research agenda that expands the examination of entrepreneurial activity in Africa beyond the standard methodologies, theoretical perspectives, tools and techniques. It argues for an economic sociological perspective that considers cultural measures such as religion, ethnicity, colonial heritage, the role of traditional leadership as well as political measures. Following a review of the relevant literatures, a series of propositions based on each of the aforementioned is presented. The Economic Community of West African States is presented as an appropriate research setting.INTRODUCTIONConsider the following statement that was made by Bruton, Ahlstrom and Obloj (2008) after a literature review of nine of the leading management and entrepreneurship journals:Given the importance and steady growth of emerging economies worldwide, it is somewhat surprising that over the last 1 7 years only 43 articles have been published on entrepreneurship in that domain. Entrepreneurship is the engine that will push the emerging economies forward as the states of the developing world quickly grow to be major economic forces. Yet it is particularly startling that there is virtually no research on the poor in the subsistence economies of the developing world. These economies hold a billion people - one-sixth of the world's population.In addition to the comparative lack of attention given to entrepreneurship in emerging economies, particularly those in sub-Saharan Africa, there is also a relative lack of diversity in theoretical and methodological approaches to African entrepreneurship. Previous research that has explored the variation in entrepreneurial activity among African nations has focused on the standard economic and infrastructure factors such as GDP, FDI, and education. These are meaningful variables and provide scholars with a baseline of knowledge about entrepreneurship in Africa as well as measures to compare African nations with other emerging economies across the world. However, these factors fail to adequately take non-economic factors into consideration.This paper aims to diversify both the methodological approaches and the contexts of research on entrepreneurship in Africa. In regards to the former, we draw on research by economic sociologists, cultural anthropologists, and management scholars of culture to augment our argument that research in this area lacks the texture provided by socio-cultural indicators of entrepreneurship. We present arguments regarding the influence of social structure and institutions on entrepreneurship and entrepreneurial activity on the African continent. We define the mechanisms by which various types of ethnic and cultural identity, language, religiosity and historical factors can contribute to a better understanding of the variation of entrepreneurial activity. In regards to our latter concern, we use the Economic Community of West African States (ECOWAS) as a case example. With this collection of fifteen African states as our primary context, we demonstrate the usefulness of these explanations and the lack of nuance that exists in contemporary analysis of business activity on the African continent. In addition, we make propositions regarding the patterns of influence on entrepreneurship and economic development.ENTREPRENEURSHIP, ENTREPRENEURIAL ACTIVITYInterest in entrepreneurship and entrepreneurial activity has increased during the last two decades. Early writings by Schumpeter (1934) and work by economists, such as Baumol (1990, 1991; 2007) and Schramm (2006) are gaining attention because of their relevance to modern economic challenges. The basic assumptions of proponents of entrepreneurship include:1) entrepreneurship is the driver of national economies (Acs, 1999; Baumol, 1990);2) it is driven by innovation (Acs & Audretsch, 1988; Drucker, 1985; Klepper & Simons, 2000; Schumpeter, 1934);3) it involves a process of discovery, evaluation and pursuit of opportunities (Kirzner, 1997; Klepper & Simons, 2000; Shane, 2000; Shane & Venkatraman, 2000); and4) networks of people and capital are critical components of the entrepreneurial process (Aldrich, 1989; Burt, 1992; Ruef, Aldrich, & Carter, 2003; Shane, 2002; Uzzi, 1997, 1999). …