Entrepreneurship and SME Management Across Africa (eBook)

Dr. Leona Achtenhagen is Professor of Entrepreneurship and Business Development at Jönköping International Business School in Sweden. She has conducted a number of different research projects on aspects of entrepreneurship and SME management in underprivileged contexts. Her research results on those topics have been published as numerous book chapters and articles in leading journals such as Entrepreneurship & Regional Development, Entrepreneurship: Theory & Practice and Long Range Planning.Ethel Brundin is Ph.D. and Professor in Entrepreneurship and Business Development at Jönköping International Business School, Sweden. She has been the project manager of three longitudinal research projects in South Africa, targeted towards previously disadvantaged groups, such as Blacks and Coloureds. Her research has been well received by policy makers on BBBEE (Broad Based Black Economic Empowerment) and is published in journals such as Journal of Developmental Entrepreneurship, International Journal of Entrepreneurship and Small Business and The International Journal of Environmental, Cultural, Economic and Social Sustainability. She has also published book chapters and journal articles, e.g. in Journal of Business Venturing. She has brought the world wide STEP (Successful Transgenerational Entrepreneurship Practices) to Africa with its base in South Africa.

Contents 6
Editors and Contributors 8
1 Introduction 14
Abstract 14
1.1 The 2015 Conference on Recent Trends in Economic Development, Finance and Management Research in Eastern Africa 15
1.2 The Chapters 16
1.2.1 Section I: Context 16
1.2.2 Section II: Challenges 17
1.2.3 Section III: Case Rwanda 18
1.3 Concluding Remarks 19
References 19
Context 20
2 Cameroon: Characteristics of Entrepreneurs and SMME Performance 21
Abstract 21
2.1 Introduction 22
2.2 Literature Review 24
2.3 Methodology 26
2.3.1 Data Source 26
2.3.2 Specification of the Econometric Model 27
2.3.3 Choice of Variables 28
2.4 Results 29
2.4.1 Descriptive Statistics and an Econometric Estimation of the Model 29
2.4.2 Econometric Estimation Results 30
2.4.2.1 Age 31
2.4.2.2 Gender 36
2.4.2.3 Training Perspective 36
2.4.2.4 Education 37
2.4.2.5 Social Networking 38
2.4.2.6 Nationality 39
2.5 Conclusions 39
References 40
3 Crowdfunding in the African Context: A New Way to Fund Ventures 43
Abstract 43
3.1 Introduction 43
3.2 The Nature of Crowdfunding 44
3.2.1 Various Types of Crowdfunding 45
3.2.2 Components of Crowdfunding 46
3.2.2.1 An Entrepreneur and the Venture 46
3.2.2.2 The Call 47
3.2.2.3 The Crowd 49
3.2.2.4 The Public 49
3.2.2.5 Business Angels (Angel Investors) 50
3.3 The Regional Nature of Crowdfunding 50
3.4 African Platforms 51
3.4.1 FundFind 51
3.4.2 Jumpstarter 52
3.4.3 M-Changa 52
3.4.4 SlizeBiz 52
3.4.5 Startcrunch 53
3.4.6 Startme.Co.Za 53
3.4.7 Thundafund 53
3.5 Cases of Successful Crowdfunding in Africa 54
3.5.1 YBike 54
3.5.2 Honest Chocolate 55
3.5.3 Les Mielleries 55
3.6 Critical Success Factors and Challenges for Crowdfunding in the African Context 56
3.6.1 Challenges for Crowdfunding and Platforms 58
3.7 So What Next? 59
References 60
4 The Lack of Business Dispute Resolution in East Africa: An Unresolved Impediment to SME Development? 62
Abstract 62
4.1 Introduction 62
4.2 Methodology 64
4.3 Formal and Indigenous Institutions in East African Business Life 65
4.4 Setting the Scene: Examples of Disputes and Lack of Justice 67
4.5 Perceptions of Dispute Resolution Mechanisms 68
4.5.1 Men’s Perceptions 68
4.5.2 Women’s Perceptions 69
4.6 Discussion and Conclusion 70
4.7 Practical Implications 72
4.8 Further Studies 72
References 73
Challenges 76
5 Microfinance Organizations in Africa: The Challenge of Transforming into Regulated Organizations 77
Abstract 77
5.1 Background 77
5.2 Regulation in the Microfinance Industry: A Review of Literature 79
5.2.1 The Need for Regulation in the Microfinance Industry 79
5.2.2 Microfinance Regulation Theories 81
5.3 Econometric Framework and Data 84
5.3.1 Estimated Model 84
5.3.2 The Data 85
5.4 Results and Discussion 85
5.4.1 Results 85
5.4.2 Discussion 89
5.5 Conclusion and Recommendation 90
5.5.1 Limitation and Recommendation for Further Study 90
Appendix: A 91
Appendix B: Model Formulation 92
References 94
6 Enhancing Organizational Citizenship Behavior: The Role of Employee Empowerment, Trust and Engagement 97
Abstract 97
6.1 Introduction 98
6.2 Theoretical Orientation 99
6.2.1 Conceptual Framework 101
6.3 Hypotheses 101
6.4 Methods and Data 104
6.4.1 Sample Size 104
6.4.2 Measures 105
6.4.3 Data Processing and Analysis 105
6.4.4 Empowerment and OCB 105
6.4.5 Regression Analysis 106
6.4.6 Dependent Variable: Self-reported OCB 107
6.4.7 Dependent Variable: Organizational Citizenship Behavior by Supervisors 107
6.5 Discussion and Conclusion 108
6.6 Contribution 110
6.7 Limitations and Future Research 110
Acknowledgments 111
References 111
7 The Challenge of Developing a Sustainable Hybrid Organization: The Case of Greenpop 114
Abstract 114
7.1 Introduction 114
7.1.1 A Social and Sustainability Enterprise and Hybridity 116
7.1.2 Sustainability Entrepreneurship 116
7.1.3 Social Entrepreneurship and Hybridity 118
7.2 The Case of Greenpop 121
7.2.1 Getting Started 122
7.2.2 Organizing for Impact 123
7.3 The Building Blocks of Greenpop’s Social Impact 124
7.4 Managing the Challenges and Opportunities of Hybridity 126
7.5 Growing Organically and Innovatively 127
7.6 Developing an Appropriate Business Model 128
7.7 Increasing the Effectiveness of the ‘Product’ 129
7.8 Communicating Across Cultures and Classes 130
7.9 Success Factors 131
7.9.1 A Unique Value Proposition and a Strong Sense of Timing 131
7.9.2 An Effective Team and an Attractive Organizational Culture 132
7.9.3 The Emergence of Strategy in Social Enterprises 133
References 134
8 The Challenge of Becoming a Successful Entrepreneur in a Hostile Context: The Example of Mohamed Ibrahim, the Founder of MSI and Celtel 138
Abstract 138
8.1 Introduction 138
8.2 The Success Story 139
8.3 Resources and Capabilities 140
8.3.1 Human Capital 140
8.3.2 Social Capital 140
8.3.3 Financial Resources 142
8.4 Entrepreneurial Capabilities 142
8.5 International Entrepreneurship 142
8.6 Motivation 143
8.7 Entrepreneurial Team, International Diversification and Business Groups 143
8.8 Social Entrepreneurship 144
8.9 Discussion 145
Cases: Rwanda 146
9 The Case of Rwanda as a Developmental State 147
Abstract 147
9.1 Introduction 148
9.2 A Short Review of the Conceptual Framework: Defining Features of a Developmental State 148
9.3 Applicability of the Developmental State Concept in Africa 149
9.4 Illustrative Case Study: Rwanda 150
9.4.1 Aftermath of the Genocide: Tabula Rasa? 151
9.4.2 Genocide: The ‘Big Push’ that Moved Rwanda Out of the High Corruption Equilibrium? 151
9.4.3 An Effective Public Service 153
9.4.4 Developmental Leadership Closely Connected to the Business Sector 155
9.4.5 Financing Politics: Business and Politics Intertwined 158
9.5 Conclusion: Is This Developmental Vision Sustainable? 161
References 162
10 Artisanal Mining in Rwanda: The Trade-Off Between Entrepreneurial Activity and Environmental Impact 166
Abstract 166
10.1 Introduction 167
10.2 Methods 167
10.3 Artisanal and Small-Scale Mining (ASM) 168
10.4 Selected Geographical Characteristics of Rwanda 169
10.5 Case Study—Rutsiro District 170
10.6 ASM as a Factor of Economic Development in Rutsiro District 173
10.7 Challenges of Mining for Entrepreneurship in Rwanda 175
10.8 Conclusions 177
References 179
11 Tourism as Emerging Industry in Rwanda: The Role of Training and Development for the Hotel Sector 180
Abstract 180
11.1 Introduction 180
11.2 The Problem and the Purpose 182
11.3 The Influence of Training and Development on Employees’ Performance 183
11.4 The Context of the Study: The Hotel Industry in Rwanda 184
11.5 The Need for Training of Employees in the Hotel Industry 184
11.6 Methodology 186
11.7 Results 187
11.7.1 Availability of Training and Development Opportunities 187
11.7.2 Employees’ Perceptions About the Level of Introduction to the Job 188
11.7.3 Training Quality 189
11.7.4 Post-Training Practices and Behavior 189
11.7.5 Overall Level of Training and Development 190
11.7.6 Employees’ Performance in Hotels 191
11.7.7 Significance of the Relationship Between the Level of Training and Development Programs and Employee Performance 192
11.8 Conclusions, Recommendations, and Limitations of the Study 193
References 194
12 Privatization of Firms in Rwanda: The Role of Corporate Governance Practices 197
Abstract 197
12.1 Introduction 197
12.1.1 Background 197
12.1.2 The Research Context: Privatization in Rwanda 199
12.1.3 Privatization in Developing Countries: The Need for Corporate Governance 201
12.2 Corporate Governance Structures in Privatized Firms 202
12.3 Method 203
12.3.1 Research Design 203
12.3.2 Interviews 204
12.3.3 Content Analysis 204
12.4 Presentation of Case Study: CIMERWA Ltd. 205
12.4.1 Activities and Performance 205
12.4.2 CIMERWA Ltd.’s Performance 205
12.4.3 CIMERWA Ltd.’s Financial Position 206
12.5 Presentation and Discussion of Findings 207
12.5.1 Subtheme 1: Ownership and Shareholding Structures 207
12.5.2 Subtheme 2: Board of Directors’ Composition and Quality 209
12.5.3 Subtheme 3: Executive Management and Internal Controls 211
12.5.4 Subtheme 4: Disclosures and Transparency 211
12.6 Conclusion 212
12.7 Contributions, Limitations, and Future Research 213
References 214
Commentary 217
13 Entrepreneurship and SME Management Across Africa: A Perspective and a Short Review 218
Abstract 218
References 222
Index 224