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19 Cards in this Set
- Front
- Back
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Role played by African government following independence in promoting indigenous enterpreneurship |
-African leaders: Julius Nyerere (Tanzania), Kwame Nkumah (Ghana), and Jomo Kenyatta (Kenya) adopted statism as their development model - They wanted to control own economies so they have the opportunity to grow, gain employment, decrease poverty -citizens will engage in production of wealth |
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Statism |
Government controls the means of production and economic resources rather than private entrepreneurs |
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Role played by African government following independence in stunting indigenous enterpreneurship |
-The policies were highly criticized because there were no checks & balances system which lead to a high level of corruption -The people without status suffered the most (people w/o money, beginning entrepreneurs) -Increased poverty, violence |
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Colonialism and African entrepreneurship |
-Designed to exploit African resources & human capital -Africans made to give up entrepreneurial pursuit for employment |
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Ways to enhance indigenous capitalism in Africa |
-Africans needed structures to enhance entrepreneurship and consequently wealth creation -In order to engage in transition to effective governance and economic systems, they need to: -develop institutional arrangements that enhance indigenous arrangements that enhance indigenous entrepreneurship -improve ability of entrepreneurial class to engage in wealth creation -effective constrain exercise of government agency. FOUR COMPONENTS OF ECONOMIC FREEDOM TO PROVIDE EACH ECONOMY WITH THE PROPER ENVIRONMENT FOR ENTREPRENEURSHIP AND WEALTH CREATION 1) the government should provide market participants with a currency that is stable and has a relatively predictable value 2) decisions on what is produced in the economy should be made by the private sector 3) the government should avoid discriminatory activities that benefit some groups or individuals at the expense of others 4) Restrictions on international trade represent an important infringement on the individual's right to engage in exchange and contract. ACTUAL WAYS: 1) Colonial activities destroyed ancient regime (feudal system) considered to be a significant obstacle to development of capitalism 2) settlers introduced local people to modern & most efficient methods of farming 3) Local farmers saved money & branched out into urban economic activities 4) local planters-capitalists successfully organized themselves politically & eventually seized control of the state at independence, making certain public policies in the post independence society would enhance continued development of capitlism |
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Men and women entrepreneurs with respect to business specialization |
-More men than women were in the formal sector as owners and managers -Women were in the informal sector -men and women traders often specialized in different commodities and employed different strategies -More men than women are global entrepreneurs |
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Women in informal sector |
-involved in selling faced a lot of challenges: -less education -difficulty qualifying & acquiring loans -use of African languages -securing licenses -reduce profits -Not following regulations -evasion of taxes -keeping accounting records -commingling funds -lack of recognition as income earners |
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Women in formal sector |
-make a great contribution to societies -impact is felt in small & large cities in Africa as they provide necessary provisions (food to Nairobi) |
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Traditional Entrepreneurs |
-engage in retail & wholesale trading -come from rich families -own Mercedes Benz: sign of wealth -generally uneducated & older women -secure credit based on years in business -products sold- textiles, clothing -use public transportation -Yoruba women engage in trading; political right, form of power, means of wealth |
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New Women Entrepreneurs |
-mostly in formal sector -own their own business: engineering firms, construction, factories, pharmaceuticals, etc. -products sold: manufactured & agricultural; high valued crops -have own transportation & drivers -travel locally abroad -established network (WAEN, EAEN, SAEN) -focus on inter-African trade |
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Small scale operations |
-sell agricultural produce, cooked food, beer, crafts, cloth -West Africa: palm, kola nuts, salt, fish -Central-East Africa: grains, tubers, vegatabels, fruits |
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Large scale operations |
-wholesale & retail trading |
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Black Entrepreneurship |
-introduction of Oprah -leverage buyouts, joint ventures, mergers and acquisitions, and conglomerate building represented expansion trends and new forms of business ownership and entrepreneurship activities for African Americans -Blacks had access to Wall Street and investment capital -Blacks were in entertainment industry: television- BIll Cosby music- Quincy Jones Robert Johnson established BET in 1979 -Berry Gordy & Motown: crossover -Blacks in telecommunications: Civil Rights & Black Power movements placed Blacks in newspapers and on TV in the news -Blacks in TV as co-hosts, actors, newscasters -accepted as talk show hosts after Civil Rights Act of 1963 |
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Television Technology |
-Expansion of TV: ABC, NBC, and CBS (1950s) -Oprah went from a newsanchor to cohost in 1984 -1986 launched nationally syndicated tv -began talking about taboo topics -related to herself |
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Business Deals |
-have control of own show -paired with Jeffrey Jacobs -1985-Color Purple -King World syndicated her show -Advertising was super heavy -CBS bought King World -Oprah made $150 million because of 3.6 mill shares -Oprah expanded her conglomerate by moving into Oxygen -able to reach more people through internet -O Magazine was launched in 2000 |
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Oprah's Race, Civil Rights/Civil Liberties |
-expanded media focus from empowerment of women to empowerment of future business leaders -Beloved released in Oct. 1998 -showed slavery as triumph |
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Factors that accounts for her rise as a business women |
-Overcoming "Mammy" stereotype -Being a Black woman entrepreneur -Sexual abuse -Brother had AIDS |
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Role of government needs to play to encourage the growth, development and sustainability of indigenous entrepreneurs |
-Emphasis on political and bureaucratic corruption -gov't should enhance & improve development of African entrepreneurships & functioning of markets -government contribute to underdevelopment |
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Reasons for business failure |
-lack of adequate technical knowhow -lack of prerequisite capital & finance -bad government policies -poor infrastructure -poor book keeping skills -production incapabilities -inadequate staffing -unhealthy business rivalry -improper long term objectives -fear of failure -lack of vision -insecurity -lack of focus |
