Africa needs more large firms, not more entrepreneurs, for economic growth
Peer-Reviewed Publication
Updates every hour. Last Updated: 9-Jul-2025 06:11 ET (9-Jul-2025 10:11 GMT/UTC)
The entrepreneurial ecosystems (EE) approach is often promoted for Africa’s growth, but Africa already has many entrepreneurs. Instead of increasing entrepreneurship, researchers argue for strategies drawn from East Asia’s development and Schumpeterian growth theory—both of which oppose EE thinking. These approaches suggest that Africa should focus on building large, productive firms and absorbing existing technologies, rather than relying on start-ups, to achieve long-term, sustainable economic development.
A new study published in the Strategic Entrepreneurship Journal examines how long-standing cultural practices, specifically cousin marriage traditions, continue to influence business outcomes in sub-Saharan Africa's informal economy.
Researchers Saul Estrin (London School of Economics), Tomasz Mickiewicz (Aston University), and Peng Zhang (University of Sheffield) analyzed survey data from over 3,000 informal entrepreneurs across eight African countries. They explored how pre-colonial family structures—especially the practice of marrying within the extended family—affect key indicators of business performance, such as employment and revenue.
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A new study published in The Lancet has raised urgent concerns about the global health consequences of recent cuts to U.S. foreign aid. The study, coordinated by researchers from the Barcelona Institute for Global Health (ISGlobal), together with the Institute of Collective Health of the Federal University of Bahia (ISC-UFBA), the University of California Los Angeles (UCLA), and the Manhiça Centre for Health Research (CISM), among others, estimates that 91 million deaths were prevented between 2001 and 2021 in low- and middle-income countries (LMICs) thanks to programs supported by the United States Agency for International Development (USAID), the largest funding agency for humanitarian and development aid worldwide. However, recent U.S. foreign aid cuts could reverse this progress and lead to more than 14 million additional deaths by 2030, including over 4.5 million children under five.