Minority entrepreneurs drive faster private sector growth in Sub-Saharan Africa.
The study looked at how different types of entrepreneurs in sub-Saharan Africa affect the growth of private businesses. They compared African-owned firms with those owned by people of Asian or European descent in Kenya, Zambia, Zimbabwe, and Tanzania. The findings show that minority-owned firms tend to start bigger and grow faster than African-owned firms, even after considering factors like firm size, age, and education levels. This suggests that minority entrepreneurs have networks that help them access resources like money and information. Additionally, African entrepreneurs with higher education levels tend to see more growth in their businesses, possibly because they develop better management skills.