Africa leads in plans to start fresh ventures

August 6, 2014
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This puts the largest East African economy at ninth position out of the 32 countries from Africa included in the 2013 survey/FILE
This puts the largest East African economy at ninth position out of the 32 countries from Africa included in the 2013 survey/FILE
NAIROBI, Kenya, Aug 6 – Forty two percent of Kenyans plan to start their first business in a year’s time, according to Gallup, a US based research and data analysis firm.

This puts the largest East African economy at ninth position out of the 32 countries from Africa included in the 2013 survey.

Malawi has the highest number citizens planning to start a business in 12 months time at 57 percent followed by Ivory Coast at 48 percent.

“Two in three Africans believe their communities are good places for people to start new businesses, which should be encouraging news as leaders discuss ways to increase trade and investment in Africa this week at the US-Africa Leaders Summit,” Gallup states.

In the region, Kenya stands second from Uganda at 43 percent while Tanzania is at position 12. Rwanda is at 31st position.

Despite Africa outpacing residents in any other region of the world, the challenge is in getting credit and proper training.

The degree to which access to training and money are potential barriers to entrepreneurship and job creation through private sector start-ups varies across the 32 countries that Gallup surveyed in 2013.

Kenya seems to in a better position where 33 percent of those who want to start their first business say they have access to credit, ranking third among the 32 countries.

On the other hand 44 percent of Kenyans who intend to start a business for the first time say they have access to training ranking second from Botswana.

Botswana are the most likely to say they have access to training (56percent) and to money (38percent) to start or grow a business.

At the other end of the spectrum, only 7 percent of Nigeriens say they have access to training and 8 percent of Beninese and Guineans say they have access to money.

“The relatively high entrepreneurial intent, despite the potential barriers of training and money, largely reinforces the reality that many entrepreneurs in Africa tend to be more necessity-driven than opportunity-driven,” the firm argues.

The report shows that African respondents who say they have access to training and money to start a business are nearly twice as likely to say that they are planning to start a business in the next year.

With the ongoing US-Africa Leaders Summit’s objective being expanding trade and investment with Africa the report recommends for more investments in education to shore up this training deficit in the continent.

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