Entrepreneurship and Wealth Creation at the African Bottom of the Pyramid

Abstract

During the last half century, the economic performance of the developing world has been far from uniform. Developing countries were polarised into those that made great progress in catching up and those that were mired in stagnation. Many African countries belong to the second group. Therefore, what could be done in order to help these countries to move from the stagnation to sustainable growth and development? During the last five decades, many attempts were explored and undertaken without any remarkable results. However, since 1999, the World Bank has promoted cutting poverty as the ultimate goal of development and required all developing countries in general and African countries in particular, to draft a Poverty Reduction Strategy Paper (PRSP) as its principal tool to reach the above. In 2000, 189 states endorsed the Millennium Development Goals (MDGs), covering an array of targets with aspirations of reaching these goals by 2015. One year after, the New Partnership for Africa’s Development (NEPAD), a vision and strategic framework for Africa’s renewal or rebirth (renaissance) was launched as a driver for African countries to move from long severe hunger and poverty, and consequently in reaching the MDGs. This paper outlines development macro economies policies implemented in various Africans countries since their independence in its first part. The second part bring CK Prahalad theory of the bottom of the pyramid; and this chapter asserts that the African bottom of the pyramid is not really poor, that wealth can be created in that section of the society through entrepreneurship, or a way of thinking. While the third part develops the social environment needed for sustainable and effective entrepreneurship through an efficient capital market, the fourth part examines the relevance of the concept of entrepreneurship in the African context.