||Like it? PLEASE +1 it! Thanks!|
12.0 The Entrepreneurial Firm Corporate Governance: Entrepreneurs and entrepreneurship in Africa
(Journal of Developmental Entrepreneurship, Oct 2002 by Kiggundu, Moses N)
Very few studies of entrepreneurship concern themselves with corporate governance. This is particularly true in Africa where by far the majority of entrepreneurial firms are very small and operate in the informal sector. Since the 1980s, Africa has undertaken political and economic reforms such as liberalization, privatization, and democratization. These have given rise to a new breed of entrepreneurs, either taking over privatized state enterprises or establishing sizable firms operating in the formal sector; all in need of good corporate governance.
Limited available evidence suggests that these African nouveaux riche, like the directors of state-owned enterprises (SOEs) before them, still need to understand the basic principles of corporate governance. They need to understand the differences in the respective roles and responsibilities of the corporate boards of directors, senior management, and the need for the separation of power and responsibilities between the two. Some board members often interfere with the day-to-day running of the corporation and senior managers are known to keep sensitive information away from board members for fear of selling it to the highest bidder (Kiggundu, 2001;1989). Few firms have functioning corporate boards and of those that do, even fewer function strategically.
Questions of corporate strategic management, accountability, transparency, responsibility to minority shareholders, social responsibility, and compliance with incorporation regulations such as disclosure rules remain problematic among the emerging African entrepreneurial class. The World Bank has recognized this need, and among other things, establishing a web site (www.gcgf.org), dedicated to improving corporate governance by fostering entrepreneurial accountability, transparency, responsibility, and fairness. In October 2001, the World Bank Group approved $2.8 billion for SMEs. The money will be used in direct and indirect financing, training and support for improved business environment and corporate governance (World Bank Press Review, October 22, 2001). Table 1 lists the five dimensions of the entrepreneurial firm: organization form, capital resources, corporate governance, and technical assistance.
Related Articles1.0 What is known and what needs to be done: Entrepreneurs and entrepreneurship in Africa
8.0 The Entrepreneurial Firm: Entrepreneurs and entrepreneurship in Africa
SME's - still a strong component in the South African economy
18.0 Conclusion: Entrepreneurs and entrepreneurship in Africa
14.0 What Needs to be Done - Producing Useable Knowledge: Entrepreneurs and entrepreneurship in Africa
New Partnership for Africa’s Development
V. D. The Future of China-Africa Economic Relations: FACTORS INFLUENCING THE GROWING TIES
SMEs - South African SMEs and development capital
Writing Phenom David S. Fick Talks with Benin Mwangi! Part Two
13.0 The Entrepreneurial Firm The External Environment: Entrepreneurs and entrepreneurship in Africa
4.0 The African Entrepreneur Race/Ethnicity: Entrepreneurs and entrepreneurship in Africa
16.0 What Needs to be Done - Scaling Up: Entrepreneurs and entrepreneurship in Africa
3.0 The African Entrepreneur Personal Traits: Entrepreneurs and entrepreneurship in Africa
Entrepreneurship Fantasy Land
SME's - does protectionism help
17.0 What Needs to be Done - Mainstreaming Entrepreneurship: Entrepreneurs and entrepreneurship in Africa
6.0 The African Entrepreneur Behavioral Patterns: Entrepreneurs and entrepreneurship in Africa
California's Not a Big Entrepreneurship State
7.0 Conclusions: Gender Entrepreneurship and Competitiveness in Africa 2007
6.0 The broader context: Gender Entrepreneurship and Competitiveness in Africa, 2007
Home > African-Accounts > Journal of Development Entrepreneurship > 120 The Entrepreneurial Firm Corporate Governance Entrepreneurs and entrepreneurship in Africa > Google +
Free PDF Download
References: Constraints of growth-oriented enterprises in the southern and eastern African region
By Journal of Development Entrepreneurship
About the Author: Journal of Development Entrepreneurship
RSS for Journal of's articles - Visit Journal of's website
The Journal of Developmental Entrepreneurship (JDE) provides a forum for the dissemination of descriptive, empirical, and theoretical research that focuses on issues concerning microenterprise and small business development, especially under conditions of adversity.
Click here to visit Journal of's website.
More from Journal of Development Entrepreneurship
Market Orientation and Competition Constraints of growthoriented enterprises
Methodology Exploring entrepreneurship in a declining economy
70 The African Entrepreneur Entrepreneurial Competencies Entrepreneurs and entrepreneurship in Africa
Financial Management Constraints of growthoriented enterprises
Information and Networks Constraints of growthoriented enterprises in the southern and eastern African region
Related Forum PostsRe: Quote of the Day - “How do you stand out? Wow your customers
Re: need advice
Fundraising for 3rd world Entrepreneurs
My Favorite Entrepreneur – created by Armand Rousso
Re: Newbie from Africa
Share this article. Fund someone's dream.
Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
||Like this page? PLEASE +1 it!|