Digital Entrepreneurship in Sub-Saharan Africa

Challenges, Opportunities and Prospects

Nasiru D. Taura, Elvira Bolat, Nnamdi O. Madichie, Nasiru D. Taura, Elvira Bolat, Nnamdi O. Madichie

• Publisher: Palgrave Macmillan
• Year: 2019
• Print ISBN:
  9783030049232
• eBook ISBN:
  9783030049249
• Topic: Commerce
• Subtopic: Stratégie commerciale

This pioneering collection seeks to understand why and how some digital enterprises in Africa progress while others firms either stagnate or regress. Using a range of detailed case studies, it addresses the challenges and barriers that are in place and how some outstanding digital firms deal with operating in a hostile business environment. While digital platforms have created equal access for small businesses, many digital entrepreneurs in Africa continue to struggle with local environments replete with corruption, and other economic inefficiencies. The contributions move the debate forward by addressing the challenges, opportunities, and prospects of digital enterprise in Africa. Placing special emphasis on how African new entrant digital firms are shaping the landscape and forging a new beginning for Africa, this book offers entrepreneurial perspectives to both researchers and policy-makers seeking to support and stimulate entrepreneurship in the new era.

Part IIntroduction

© The Author(s) 2019

Nasiru D. Taura, Elvira Bolat and Nnamdi O. Madichie (eds.)Digital Entrepreneurship in Sub-Saharan AfricaPalgrave Studies of Entrepreneurship in Africahttps://doi.org/10.1007/978-3-030-04924-9_1

Begin Abstract

1. Introduction to African Digital Entrepreneurship

Nasiru D. Taura¹ , Elvira Bolat¹ and Nnamdi O. Madichie²

(1)

Business School, Bournemouth University, Bournemouth, UK

(2)

Centre for Research & Enterprise, Bloomsbury Institute London, London, UK

Nasiru D. Taura (Corresponding author)

Email: [email protected]

Elvira Bolat

Email: [email protected]

Nnamdi O. Madichie

Email: [email protected]

Keywords

DigitalisationDigital innovationSub-Saharan AfricaSyllabus

End Abstract

There is a general tendency to believe that adverse geography, weak institutions, and general lack of resources have contributed to Africa’s inability to develop and to be innovative (Acemoglu 2010; Naudé and Havenga 2007; Naudé and Krugell 2002; Rodrik and Subramanian 2010; Sachs 2010). However, despite the hostile environment of doing business in Africa, variations in firm performance do exist: some have regressed, some have progressed, and some have stagnated. The variations in performance increase with technological advances, but there is limited evidence documenting how digital enterprises approach the hostile business settings in Africa (Chakravorti et al. 2017).

This book focuses on how some outstanding digital enterprises and sectors have dealt with the hostile business environment in Africa. It has been argued that the arrival of the dual effects of globalisation and digitalisation has contributed to increasing speed and shrinking distances—thus creating equal opportunities for entrepreneurs globally—but this needs to be illustrated with insightful case studies. We contend that, while on the one hand, digital platforms have created equal access, on the other hand many digital entrepreneurs in Africa still struggle with local environments replete with corruption and other economic inefficiencies.

The digital landscape in Africa is changing (IMD’s World Digital Competitiveness Index 2017). Despite low scores in digitalisation, some African countries have demonstrated the potential to evolve rapidly. Although they are held back by relatively weak infrastructure and poor institutional quality, they have demonstrated their potential to become leaders in digital innovation in the future.

The variations in momentum among African countries are likely to generate more competition on the continent while stimulating economic growth and competitiveness. According to Chakravorti et al. (2017), when digital momentum zones are mapped out in Africa, “the two largest economies, Nigeria and South Africa, remain in Break Out and Watch Out zones, respectively, digitally savvy Kenya has picked up an impressive level of momentum by assembling a thriving ecosystem”.

In view of the changes in the digital landscape of Africa, this book addresses new perspectives on doing businesses in the rapidly changing African digital climate. Our aim is to go beyond the conventional rhetoric of the entrepreneurial revolution, to provide insights about the challenges, opportunities, and prospects of digital entrepreneurship in Africa. Overall, the purpose of this opening chapter is to introduce the African digital entrepreneurship landscape and its changing dynamics, taking into consideration the interplay between new entrants and incumbents.

Following this opening chapter, Chap. 2, “Innovation Hubs in Africa: What Do They Really Do for Digital Entrepreneurs?” by Nicolas Friederici, provides a grounded perspective on Africa’s most widely noted type of digital entrepreneurship support organisation: the innovation hub. This is vital given the explosion of innovation hubs across Africa and the claims being made regarding how they facilitate entrepreneurship, including digital entrepreneurship, in Africa.

Chapter 3, “Renegotiating Legitimacy in the Digital Age: Insights from Nigeria” by Nasiru D. Taura, Obiajulu Christopher Ede, and Oladokun Ogunniyi, discusses how African enterprises are dealing with the challenging issue of establishing legitimacy from the perspectives of both new entrants and incumbents. The chapter begins with an interview with a successful African digital entrepreneur, Olalekan Olude, of Jobberman. The chapter also addresses how incumbent banks deal with the legitimacy challenge in a digital age that requires them to reposition themselves, drawing on legitimacy theory to examine how African incumbent banks have responded to the wave of digital enterprises (fin-techs) elsewhere referred to as a revolution. This is vital, since previous work mainly focuses on the “attacker’s advantage” with little or no insight on entrepreneurial incumbents who have applied a range of strategies to successfully renegotiate their legitimacy despite challenges posed by the new order.

In Chap. 4, “The African New Media Digital Revolution: Some Selected Cases from Nigeria”, Elvira Bolat explores the historical timeline of and changes in the media landscape and presents an empirical investigation of small and medium-sized new media enterprises, reflecting on their journeys in establishing technological enterprises, the media used, and the resources that were critical to manage and run these businesses, as well as general commentary on enablers and barriers.

Chapter 5, “The Impact of New Media (Digital) and Globalisation on Nollywood” by Nnamdi O. Madichie, Bamidele O. Ajakaiye, and Vanessa Ratten, investigates the Nigerian movie industry in the light of digitalisation of the sector. The chapter examines and highlights how two major forces—new technologies and globalisation—have impacted (and are still impacting) upon the Nigerian film industry (also known as Nollywood), drawing on theories of value chain in production, distribution, and marketing of cultural products (i.e. movies), and its internationalisation.

In Chap. 6, “Shifting Cultural Capital: Kenyan Arts in Digital Spaces”, Paula Callus examines the impact of digital technology on cultural capital that is associated with curatorial practice, the gallery, and the marketplace. The chapter draws from the theory of cultural capital and illustrates how digital art challenges notions of authenticity in the discourse on African art.

In Chap. 7, “Technopreneurship: A Discursive Analysis of the Impact of Technology on the Success of Women Entrepreneurs in South Africa”, Bridget Irene provides a discursive analysis of the impact of technology on the success of women entrepreneurs in South Africa. The chapter is a thematic synthesis of current literature on technopreneurship and the impact of technology on women entrepreneurs with a view to providing a basis for understanding the implications for the business strategy of women in the era of Gen Y and Z. This is vital given the opportunity that arises for inclusive-tech to reduce the equality gaps in the African business context.

In Chap. 8, “The Nature of Corporate Digital Agricultural Entrepreneurship in Ghana”, George Acheampong takes the reader through an equally interesting research area on corporate digital entrepreneurship from the Ghanaian perspective. Likewise, in Chap. 9, “Agri-tech Opportunities at the Bottom of the Pyramid: How Big Is the Opportunity and How Little Has Been Exploited? Some Selected Cases in Nigeria”, Ali Muhammad Garba examines closely the rise of a distinctive form of entrepreneurship at the bottom of the pyramid interfaced with digital technology, illustrating the massive opportunities that could potentially be exploited.

The book concludes with some thoughts on the subject of digital entrepreneurship in Africa and its many facets. In this final chapter, Nnamdi O. Madichie, Nasiru D. Taura, and Elvira Bolat present a synthesis of the ideas discussed in the book.

References

1. Acemoglu, D. (2010). Root Causes: A Historical Approach to Assessing the Role of Institutions in Economic Development. In G. Secondi (Ed.), The Development Economics Reader. New York: Routledge.
2. Chakravorti, B., Bhalla, A., & Chaturvedi, R. S. (2017). 60 Countries Digital Competitiveness Indexed. Harvard Business Review.
3. IMD’s World Digital Competitiveness Index. (2017). [Online]. Retrieved October 18, 2018, from https://​www.​imd.​org/​globalassets/​wcc/​docs/​release-2017/​world_​digital_​competitiveness_​yearbook_​2017.​pdf.
4. Naudé, W. A., & Havenga, J. J. D. (2007). An Overview of African Entrepreneurship and Small Business Research. Journal of Small Business and Entrepreneurship, 18(1), 101–120.Crossref
5. Naudé, W. A., & Krugell, W. (2002). African Economic Growth: Wrong to Rely on Small Businesses. Journal of Small Business and Entrepreneurship, 16(2), 21–44.Crossref
6. Rodrik, D., & Subramanian, A. (2010). The Primacy of Institutions (and What this Does and Does Not Mean). In G. Secondi (Ed.), The Development Economics Reader. New York: Routledge.
7. Sachs, D. S. (2010). Institutions Matter but not for Everything: The Role of Geography and Resource Endowments in Development Shouldn’t Be Underestimated. In G. Secondi (Ed.), The Development Economics Reader. New York: Routledge.

© The Author(s) 2019

Nasiru D. Taura, Elvira Bolat and Nnamdi O. Madichie (eds.)Digital Entrepreneurship in Sub-Saharan AfricaPalgrave Studies of Entrepreneurship in Africahttps://doi.org/10.1007/978-3-030-04924-9_2

Begin Abstract

2. Innovation Hubs in Africa: What Do They Really Do for Digital Entrepreneurs?

Nicolas Friederici¹

(1)

Oxford Internet Institute, Oxford University, Oxford, UK

Nicolas Friederici

Email: [email protected]

Keywords

Innovation hubsDigital entrepreneursDyadic viewEmpirical inquiryGhanaRwandaZimbabwe

End Abstract

2.1 From Internet Access to Impact: The Promise of Digital Entrepreneurship

The global diffusion of the Internet continues unabated. The year 2017 marked a historical milestone: according to the best available estimates, the number of unique Internet users on earth outgrew the number of non-users at some point during the year.¹ While challenges remain, affordability and bandwidth have also improved in the world’s poorest nations (Deichmann and Mishra 2016). Such drastically improved and truly globalized connectivity has led to an expectation of sig...

Table of contents

• Cover
• Front Matter
• Part I. Introduction
• Part II. Fin-tech: Trust, Legitimacy, and Digital Infrastructure—The Promise, Prospects, and Challenges
• Part III. Media-tech: The Creative Destruction and Reconstruction of African Digital Media
• Part IV. Animation and Games: Unlimited Opportunities for Exploration
• Part V. Inclusive-tech: Gender Inequality, Poverty, and Digital Ecosystems
• Back Matter