The Social + Economic Impact of African Entrepreneurship Migration

Facilitator: Alesimo Mwanga, Research Executive Director, SEA Africa

PanelMs. Kanini Mutooni, Investment Director – East Africa Trade and

Investment (Kenya)Mr. Bola Lowal, Co-Founder of ScholarX

Mr. Charles Sekwalor, Founder & CEO of MoveMeBack (UK)Wale Yeni, Regional Head, Sub-Saharan Africa, International Finance

Corporation (Venture Capital).

BackgroundIn Africa, very limited research or data is available on entrepreneurship migration patterns.

Research studies that have been conducted on entrepreneurship in Africa mainly focus on the growing informal sector, entrepreneurship as a survivalist activity, the barriers that entrepreneurs face and the entrepreneurial activities that occur in diverse African countries.

Very limited studies demonstrate the entrepreneurial activities of Africans in other parts of the world. Furthermore, limited research is available that indicates the patterns of migration and how this may impact African countries in terms of potential loss of revenue, job creation and economic growth.

BackgroundAfrican migration to the world has increased dramatically. From 1960 to the year 2000, it rose from 1.8 million to 8.7 million.

Large concentrations of Africans are found mostly in the United States (US) and the United Kingdom (UK). The highest number of African migrants based in the US and UK are Nigerians, followed by Kenyans and South Africans. Based on the identified migration trend, an exploratory study

BackgroundBusiness visionaries and innovative entrepreneurs are present within all communities.

However, not all communities adapt quickly to the disruptive changes they provoke.

This leaves entrepreneurs and innovators to either challenge the resistant nature of disruptive innovation, pursue rent-seeking opportunities or migrate to an environment more welcoming of economic creativity and innovation

Study Findings

Figure 1: Educational levelUndergraduatePostgraduate

Figure 2: Professional background prior to venturing into business

Figure 3: Reasons for venturing into business

Figure 4: Business Sector

Figure 4: Estimated Business Revenue

Figure 5: Business Operation

Figure 5: Perceptions of Entrepreneurial Ecosystem in Home Country

Panel Insight

What does this mean for Africa?

How do we use this as an opportunity for development in Africa?

RecommendationsRecommendation one: Strengthening African Ecosystems

African entrepreneurs’ first need to acquaint themselves with regional, continental and global business dynamics in order to enhance their stakes in the international business environment.

Recommendation two: Establish and Develop Networks with African Diaspora Entrepreneurship Communities

African Diaspora entrepreneurship communities are a growing phenomenon but have been underutilized within African entrepreneurship communities. This community represents a rich resource that leads to promising prospects for economic growth. The community is as at advantage because of their ethnic and social affiliations, positioning them strategically in shaping cross-border trade and commerce activities within the African community.

RecommendationsRecommendation three: Investing in entrepreneurship research in Africa, data

African entrepreneurs’ first need to acquaint themselves with regional, continental and global business dynamics in order to enhance their stakes in the international business environment.

Recommendation two: Establish and Develop Networks with African Diaspora Entrepreneurship Communities

A major constraint to assessing entrepreneurship in Africa is the lack of comprehensive data on the size and breadth of entrepreneurial activities. Studies that attempt to measure entrepreneurship and innovation is based on subjective measures of perceptions that cover attitudes and activities of entrepreneurs. There is currently very limited data about African entrepreneurs’ and firm ownership.

Questions