The World Bank, Japan International Cooperation Agency (JICA) Research Institute, and the Foundation for Advanced Studies on International Development (FASID), in collaboration with researchers affiliated with the African Economic Research Consortium (AERC), recently conducted a study on Africa s domestic enterprises to improve the understanding of the constraints micro and small enterprises in Africa face in improving productivity and expanding their markets. In Africa, there are stark performance gaps between domestically owned enterprises and foreign-owned enterprises in terms of sales performance, productivity, and ability to reach distant markets. Among others, size appears to be a dominant factor in explaining the gap. Against this background, the study analyzes how naturally formed industrial clusters concentrations of enterprises engaged in same or closely related industrial activities in specific locations could potentially mitigate constraints Africa s micro and small enterprises face and enhance their business performance. The study is one of the first comprehensive quantitative inquiries on industrial clusters in Africa. The analysis specifically focuses on the role of spontaneously grown clusters of light manufacturing industries based on a set of original case studies of industrial clusters conducted for this research project. One of the key findings from the case studies was that cluster-based micro and small enterprises are performing better than similar micro and small enterprises outside of the clusters in terms of sales performance and ability to reach distant markets. Market access is a leading reason for cluster-based enterprises to choose their current locations. However, cluster-based enterprises face another set of unique growth constraints. By the very nature of spontaneous agglomera tion, new enterprises continue to flow to the clusters seeking the profit opportunities and better access to markets at such locations. The result can be intense competition in addition to increased congestion. Space constraints often impede growth within clusters. The lack of alternative locations available for industrial activities in the same cities, generic infrastructure bottlenecks, and unclear zoning policies and their unpredictable changes limit firms location choices and constrain their mobility. While competition should improve efficiency, lack of capacity among those competing cluster-based enterprises to invest and innovate does not generate growth out of the competition. The vast majority of naturally formed clusters of light manufacturing industries in Africa are still at a survival level, where agglomeration externalities are only limited to expand quantity but not quality as we observe in more advanced innovation-oriented clusters in elsewhere in the world. Existing studies on such natural industrial clusters in Africa have found that the lack of managerial skills among entrepreneurs running micro and small enterprises is a major constraint for innovation and growth in the clusters. As a part of this study, pilot managerial skills training programs were conducted in two industrial clusters on an experimental basis, where a group of randomly selected entrepreneurs within the clusters were given three-week long crush course of based management such as bookkeeping, marketing, business planning, and production management. The impact evaluation of the experiments showed significant positive impacts of the training programs on value added and gross profits of enterprises. Raising the current survival-type industrial clusters, which have been formed as a coping mechanism to weak investment climate, into more dynamic innovating clusters will be an important avenue for fostering growth of micro and small enterprises in Africa. While national efforts to improve investment climate and investments in human capital are undoubtedly important, there could be more targeted policies to be formulated, in complementing general policies, to support growth of micro and small domestic enterprises using existing industrial clusters as a natural springboard for their growth. In that context, the study discusses the merit of cluster-based managerial human capital development to build steps toward more innovation-oriented clusters, the importance of sound spatial planning policy, particularly at the local level in the context of urban planning, the need to expand market access and economic linkages for industrial clusters including regional integration and linkages with large enterprises.

This book focuses on how to improve the quality of jobs and meet the aspirations of youth in Sub-Saharan Africa. It finds that a strong foundation for human capital development can be key to boosting earnings, arguing for a balanced approach that builds skills and demand for labor.

It is widely acknowledged that youth unemployment is one of the most critical challenges facing countries in Sub-Saharan Africa. This volume brings together an eminent group of international scholars to analyse the extent and complex nature of this joblessness, and offer a set of evidence-based policy choices that could contribute to solving the problem in the short- and long-run. Part I reviews the existing literature on youth unemployment and underemployment in Sub-Saharan Africa from microeconomic and macroeconomic perspectives, while Part II goes on to present detailed country studies of Ethiopia, Ghana, Kenya and South Africa. These studies offer a deep understanding of the situation on the ground and consider country-specific solutions. Throughout the book it is argued that the standard ILO definition of unemployment is too narrow to correctly portray employment situations in Sub-Saharan Africa. Several alternative measures of unemployment are presented, which show that joblessness is far more pervasive than commonly assumed in the literature. This volume will be of interest to academics and policy makers involved in African development.

This book investigates the prospects of Africa’s sustainable industrialization, with an emphasis on youth entrepreneurship and the mechanisms in place to support both industrial and corporate entrepreneurs. The volume addresses two specific issues; first, industrialization and youth entrepreneurship and secondly, youth entrepreneurship training and education. The emphasis on youth entrepreneurship to drive sustainable industrialization in Africa is driven by three points: first, Africa’s industrialization is still at its inception with severely limited existing stock of entrepreneurial talents, which makes it imperative to look to the continent’s bulging youth population – the “population dividend” for the needed supply of successive generations of entrepreneurs. Secondly, sustainable industrialization would have to be oriented to “green”, “ICT” and “inclusive” growth which calls for a change in entrepreneurs’ attitudes. Finally, at the centre of the “Africa Rising” narrative is a budding new “cheetah” generation of young entrepreneurs who are highly educated, professional and motivated by the need to set up new business models and practices to compete in the Fourth Industrial Revolution. This volume forms part of an Education for Sustainable Development in Africa (ESDA) book series involving the United Nations University Institute for the Advanced Study of Sustainability and 8 partner African universities running Master’s Programs in sustainable development. The book series is intended to serve primarily as undergraduate and graduate instruction materials for courses on sustainable development in Africa, as well as policy input to key developmental issues in Africa.

The SAGE Handbook of Small Business and Entrepreneurship offers state-of-the-art chapters on all aspects of this rapidly-evolving discipline. Original contributions from the best international scholars map the development of Entrepreneurship as an academic field, explore its key current debates and research methods, and also consider its future directions. Part One: The People and the Entrepreneurial Processes Part Two: Entrepreneurship and Small Business Management and Organization Part Three: Entrepreneurial Milieu Part Four: Researching Small Business Entrepreneurship This handbook will be the leading reference book for Entrepreneurship academics and researchers, as well as those from other associated disciplines including business and management, psychology, marketing, sociology and anthropology.

This book presents current research by leading experts from around the globe on entrepreneurship in Africa, focusing on how entrepreneurship is central to the economic development of many of the economies on the African continent. Collectively, the contributors identify the frontier of impactful research on entrepreneurship, and provide a glimpse into both the opportunities and the challenges for entrepreneurship in Africa. This book was originally published as a special issue of the Africa Journal of Management.

This publication reviews recent developments within technical and vocational education and training (TVET) in sub-Saharan Africa, as well as future challenges in skills development in the region. Based upon 70 case studies covering 20 countries, it provides a good starting point for the development of country policies and programmes, of relevance to other African regions as well as countries in other regions facing similar challenges. Issues discussed include: the labour market context, reform of public training programmes, regulation of non-government training institutions, enterprise-based training, building skills for the informal economy, balancing cost-effectiveness with growth and equity, and financing.

This second edition provides a comprehensive and up-to-date overview of the field of entrepreneurship, principally from an economics perspective.

The African Economic Outlook 2017 presents the continent’s current state of affairs and forecasts its situation for the coming two years.

At present, how to develop industries is a burning issue in Africa, where population growth remains high and economic development has thus far failed to provide sufficient jobs for many, especially young people and women. The creation of productive jobs through industrial development ought to be a central issue in steering economic activity across the continent. The authors of this book, consisting of two development economists and five practitioners, argue that the adoption of Kaizen management practices, which originated in Japan and have become widely used by manufacturers in advanced and emerging economies, is decisively the most effective first step for industrial development in Africa. This open access book discusses what Kaizen management is, why it is applicable to Africa, and why it can provide Africa with a springboard for sustainable economic growth and employment generation.