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

dc.creatorBrixiová, Zuzana
dc.creatorNcube, Mthuli
dc.date2015-05-28T12:26:16Z
dc.date2015-05-28T12:26:16Z
dc.dateBrixiová, 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.date2015-05
dc.date.accessioned2017-06-06T10:55:47Z
dc.date.available2017-06-06T10:55:47Z
dc.date.issued2017-06-06
dc.descriptionPolicymakers 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.descriptionThe 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.identifier978-1-928281-07-8
dc.identifierhttp://hdl.handle.net/11090/779
dc.identifier.ris TY - Working Paper DA - 2017-06-06 DB - OpenUCT DP - University of Cape Town KW - Model of start-ups KW - productivity KW - multiple equilibria KW - low income countries KW - Africa LK - https://open.uct.ac.za PB - University of Cape Town PY - 2017 T1 - Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia TI - Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia UR - http://hdl.handle.net/11090/779 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11090/779
dc.languageen
dc.publisher.departmentSALDRUen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.relationSaldru Working Papers;146
dc.subjectModel of start-ups
dc.subjectproductivity
dc.subjectmultiple equilibria
dc.subjectlow income countries
dc.subjectAfrica
dc.titleEntrepreneurship and the Business Environment in Africa: An Application to Ethiopia
dc.typeWorking Paper
uct.type.publicationResearchen_ZA
uct.type.resourceWorking Paperen_ZA
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