Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia


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dc.creator Brixiová, Zuzana
dc.creator Ncube, Mthuli
dc.date 2015-05-28T12:26:16Z
dc.date 2015-05-28T12:26:16Z
dc.date Brixiová, Z., Ncube, M., (2015). Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia. A Southern Africa Labour and Development Research Unit Working Paper Number 146. Cape Town: SALDRU, University of Cape Town
dc.date 2015-05
dc.date.accessioned 2017-06-06T10:55:47Z
dc.date.available 2017-06-06T10:55:47Z
dc.date.issued 2017-06-06
dc.identifier 978-1-928281-07-8
dc.identifier http://hdl.handle.net/11090/779
dc.identifier.uri http://hdl.handle.net/11090/779
dc.description Policymakers in developing countries have recognized that productive entrepreneurship can help eliminate extreme poverty. This paper develops a search model of costly entrepreneurial start-ups under a constraining business environment and skill gaps, where one of the equilibrium outcomes is a low-productivity trap. The model reflects stylized facts from the urban labor markets in low income countries such as Ethiopia where low rates of productive entrepreneurship coexist with high output growth in some sectors. Creating an enabling business environment could help move the economy into the high-productivity equilibrium if the regulatory improvements are substantial and other bottlenecks such as skill gaps addressed. We test the role of the business environment in entrepreneurial sales on data from a recent World Bank survey of enterprises in Addis Ababa.
dc.description The authors thank Emerta Asaminew and Andreas Wörgötter for comments. Special thanks go also to Zorobabel Bicaba for help with the regression tests. This paper is an updated and substantially expanded version of the IZA Discussion Paper No. 7553 and the William Davidson Institute Working Paper No. 1000. The views expressed are those of the authors and do not necessarily reflect those of the African Development Bank.
dc.language en
dc.relation Saldru Working Papers;146
dc.subject Model of start-ups
dc.subject productivity
dc.subject multiple equilibria
dc.subject low income countries
dc.subject Africa
dc.title Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia
dc.type Working Paper en_ZA
uct.type.publication Research en_ZA
uct.type.resource Working Paper en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department SALDRU en_ZA

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