March 25, 2014 By: Dr. Emmanuel Bravy Daykeay For many decades, research on entrepreneurial careers or entrepreneurship from a career development perspective has continued to receive considerable scholarly interest (Bowen & Hisrich, 1986; Dyer, 1994). Despite the growing research on this topic, there remains very little focus on entrepreneurship within African nations, especially Liberia. The purpose of this article is to bring to light what is known about entrepreneurial careers from an African perspective. In some African countries including Nigeria, Kenya, Zimbabwe, Zambia and Malawi, governments have designed and implemented entrepreneurial skills development programs as a strategy to address the youth unemployment problem and promote economic activities (Nafukho, 1998). In the case of Kenya, the Government has established a youth and women entrepreneurship development fund with the aim of promoting job creation through entrepreneurship (Muyia, 2010). Thus, in Africa, with 70 per cent of its population being in the age category of 24 years old and below, entrepreneurship is viewed as the only viable solution to job creation and career development for young people. As noted by (UNEC A, 2005) on the problem of youth unemployment, Sub-Saharan Africa is ranked second in the world. In Liberia, unemployment among university graduates, tertiary level graduates, school leavers and other vulnerable members of society is negatively affecting the career development of many young people. However, the need to create an environment that can develop and unleash the expertise of the educated youth in Liberia is very critical. In this article, we review empirical research on entrepreneurship and career development from an African perspective and suggest some directions for future scholarly research. To date, there exists no universal definition of entrepreneurship. However, the current trend of research in entrepreneurship is to consider entrepreneurship as a process of discovering, evaluating and exploiting entrepreneurial opportunities (Shane & Venkataraman, 2000;), a view that arose following Gartner’s (1988) critique of entrepreneurship researchers focus on simply profiling entrepreneur characteristics and personality traits. This process of entrepreneurship often results in the formation of a new organization (Gärtner, 1985). Hence, for our review of literature, we define entrepreneurship broadly as new venture creation or firm formation (Gärtner, 1985). Whereas considerable research exists on several careers, e.g. lawyers, doctors and managers, career research on entrepreneurs is scarce (Dyer, 1994). Having looked at entrepreneurship, we now briefly discuss the meaning of an entrepreneur. Stapleton (1985) refers to an entrepreneur as an individual who adds value to a product or service by undertaking new tasks such as a new business venture or finding a new market for an existing service or product. Thus an entrepreneur is an individual who is both creative and innovative (Schumpeter, 1950). This paper aims to contribute to research on careers by examining this less researched career of entrepreneurship in Liberia. Method for Studies Selection We reviewed empirical literature on career development within the field of entrepreneurship in the African setting. We searched two major databases: ISI Web of Knowledge and EBSCOhost business searching interface. These two databases provided access to several journals containing scholarly research in the discipline of business/entrepreneurship and career development. Business/Entrepreneurship journals that are found in these databases include, but are not limited, to the Academy of Management Journal, Strategic Management Journal, Journal of Business Venturing, Journal of International Business Studies, Entrepreneurship Theory and Practice, Entrepreneurship and Regional Development, Journal of Small Business and Entrepreneurship, and Journal of Developmental Entrepreneurship. Journals publishing research on career development include Career Development Quarterly, Journal of Career Development, Career Development International, and Journal of Occupational and Organizational Psychology, among others. We restricted our search specifically to articles on entrepreneurship and career development in Liberia from academic journals. Additionally, we used terms such as experience, education, training, personality, economic factors, role models, traits, ethnicity, environment, childhood, family, work experience and start-up experience. These terms have been mentioned in articles on entrepreneurial careers as factors that influence individuals to found firms or develop an entrepreneurial career (Bowen & Hisrich, 1986; Dyer, 1994). This initial search yielded 162 articles. We thoroughly scrutinized each of these articles to ensure that they: a) were empirical articles, b) focused on Africa, and c) focused on entrepreneurship. This scrutiny thus yielded only 11 empirical articles dealing specifically with the entrepreneurial career or entrepreneurship as a career in Africa. These are the articles that we have reviewed in this paper. Following Dyer’s (1994) model of entrepreneurial careers, we review our selected studies focusing on the entrepreneurial career in Africa along two broad streams. The first stream deals with career choice and career socialization of entrepreneurs (Dyer, 1994). This stream covers research on individual, economic, social factors and socialization experiences that influence one’s decision to take up an entrepreneurial career. The second stream focuses on the career orientation and progression of entrepreneurs, exploring the roles that entrepreneurs play in the course of their career including their identification with the entrepreneurial career (Dyer, 1994). We hereby review each of these streams, summarizing the key research questions, research methods and reported findings. Career Choice and Career Socialization of Entrepreneurs Several empirical studies have examined issues pertaining to the choice of the entrepreneurial career. Of the studies that we reviewed, 83.33 per cent (10 studies) focused on the choice of entrepreneurship as a career. We have summarized these studies in Table 1 [Appendix]. Evidently, there is an overemphasis on descriptive questions relating to the career choice of entrepreneurs. Descriptive questions covered include what motivates entrepreneurs to start businesses (Chu, Benzing, & McGee, 2007; Kuada, 2009; van der Merwe & de Swardt, 2008), what influences entrepreneurs to start businesses (Beeka & Rimmington, 2011; Black & Castaido, 2009; Mahadea, Ramroop, & Zewotir, 201 1), and what are the determinants of entrepreneurship or start-ups (Muhanna, 2007; Naude, Cries, Wood, & Meintjies, 2008). These studies reveal that the decision for most Africans to join an entrepreneurial career is heavily dependent on economic factors. A number of the studies reviewed mentioned economic influences such as availability of capital (Black & Castaido, 2009; Naude, et al., 2008) or motives such as acquisition of finance (Chu, et al., 2007; Kuada, 2009; van der Merwe & de Swardt, 2008). Besides finance, the need for independence and previous work experience appear to be important determinants of the decision to become entrepreneurs by Africans (Chu, et al., 2007; van der Merwe & de Swardt, 2008). Less researched within this stream of research are non-descriptive questions such as the effectiveness of training interventions to business start-up (Botha, Nieman, & van Vuuren, 2007), and how strong ties affect business start-up (Khavul, Bruton, & Wood, 2009). On one hand, Botha et al., (2007) show that training as an entrepreneurship intervention measure is effective in enabling African women pursue an entrepreneurial career. On the other hand, Khavul et al., (2009) indicate Africans pursuing an entrepreneurial career are most likely to network with strong community ties rather than family ties. These findings are important since they emerge from individuals in Africa directly involved in entrepreneurship as opposed to findings from Government individuals who in most cases design and implement entrepreneurial development programs without input from the entrepreneurs themselves. Career Orientation and Progression of Entrepreneurs Only a few scholars have examined the career path of entrepreneurs in Africa. Of the studies reviewed, 33.33 per cent (4 studies) deal with questions related to the orientation and progression of the entrepreneurial career. Studies reviewed in relation to career orientation and progression address both descriptive (50 per cent of the studies) and non-descriptive (50 per cent of the studies) research questions. Babalola (2010) identifies an individual’s training, parents’ occupation and the need for achievement as the key factors that make one identify with the entrepreneurial career, an aspect of career orientation. Using business success and growth as proxies for achievement of progress in one’s career, facilitative factors have been identified as training intervention (Botha, Nieman, & van Vuuren, 2007), hard work management skills, access to finance and business experience (Chu, Benzing, & McGee, 2007), whereas constraining factors include weak economies, competition and lack of capital (Chu, Benzing, & McGee, 2007). Only one study (Ehlers, 2008) has traced the progression of an entrepreneur, detailing the changes in careers from formal employment to self-employment, including factors that brought about these changes and as the respondent took up an entrepreneurial career. This study reveals that an African entrepreneur may not always start with the entrepreneurial career early in his/her life. Previous careers may have a contributing role to one’s current career as an entrepreneur. Conclusions and Future Research Directions Our review of past empirical research in this paper reveals that there is some effort to examine the topic of career development in the field of entrepreneurship within the context of Liberia. Nevertheless, a yield of only 10 empirical studies from such reputable databases clearly shows that this effort can be rightly described as a drop of water in the ocean. Overall, more research on this topic from the Liberia context is needed, especially research on career orientation and progression. Empirical research should be used to provide the foundation for strong entrepreneurship and career development in Liberia. The effort to examine the topic in this paper, as shown in this review, reveals some important findings that are a pointer to future research. Research on the choice of entrepreneurship as a career in Liberia indicates that there is an overemphasis on the motivations, influences and determinants of the choice of entrepreneurship as a career. We therefore call on researchers interested in this topic to consider exploring non-descriptive questions addressing how the behavioral and activities of individuals affect their career choice. Like Gärtner (1988), we believe that a behavioral approach may be a more useful research avenue in studying entrepreneurship and career development. Rather than focus on what the motivations, influences and determinants might be, future researchers might consider questions related to how the identified motivations, influences and determinants might influence career choice and progression. The reviewed studies also show that within the African continent, South Africa (6 of the 12 studies) has been over-researched on this topic, followed by Ghana (3 studies), Liberia and Kenya (2 studies). Other countries researched include Nigeria, Côte d’Ivoire and Uganda (1 study each). In a continent with 54 countries, 6 countries cannot be regarded as representative. There is a need for future research to examine the current topic in different African countries in order to determine whether contextual similarities and differences would lead to similar or different findings. Indeed, context, particularly socio-cultural context, does matter when studying phenomena related to entrepreneurship (Khayesi and George, 2011). Therefore there is a need for future researchers to investigate how the contextual differences affect the career choice and progression of entrepreneurs in Liberia. In addition, research on the role of the Liberian Governments in promotion of entrepreneurship and career development is critical. Entrepreneurship in Liberia should be studied not only from the context of the way individuals operate in the sphere of economic activities but also from the way in which the governments manage the economies. Governments should facilitate and not stifle entrepreneurial spirit (Nafukho, 1998; Nafukho & Muyia, 2010). The Republic of Liberia is endowed with capital, but for this capital to be used to generate wealth through entrepreneurship, it must be pauperized, then monetized and provided to potential entrepreneurs through micro-financing in order to fund good business ideas among many Liberian youths leaving schools, colleges and universities. Besides the provision of credit, there is a need to create a conducive business environment necessary to promote entrepreneurial career development programs. In addition, the existing government policies regarding entrepreneurship and career development should be studied. There is a need for the design and implementation of entrepreneurship education and training programs that are interdisciplinary in nature. Entrepreneurial skills development programs in Liberia should both aim at developing the careers of those involved, especially the youth, and promotion of small businesses which have the potential to create more jobs than the formal public sectors. The other critical area that merits research is how entrepreneurs in Liberia are using information and communication technologies (ICTs) to become entrepreneurial and to enhance their careers by adding value to goods and services that they produce or market. The perfect example is the use of M-PESA in Kenya as an entrepreneurial venture which utilizes cell phones to offer efficient and reliable money services. Thus, how can ICT be utilized to enhance job creation, promote entrepreneurial activities and develop careers for many unemployed youth in Liberia? How can social media be utilized to transform careers for the youth and their business enterprises? Answers to these questions are important to promoting entrepreneurship and career development in Liberia. References: Babalola, S.S. (2010). The role of socio-psychological capital assets on identification with self-employment and perceived entrepreneurial success among skilled professionals. Journal of Small Business and Entrepreneurship 23 (2), 159-172. Beeka, B. H., & Rimmington, M. (2011). Entrepreneurship as a career option for African youths. Journal of Developmental Entrepreneurship 16(1), 145-164. Black, R., & Castaido, A. (2009). Return migration and entrepreneurship in Ghana and Cote d’Ivoire: the role of capital transfers. Tijdschrift Voor Economische En Sociale Geografie 100 (1), 44-58. Botha, M., Nieman, G., & van Vuuren, J. (2007). Measuring the effectiveness of the women entrepreneurship programme on potential, startup and established women entrepreneurs in South Africa. South African Journal of Economic and Management Sciences 10 (2), 163183.
Posted on: Tue, 25 Mar 2014 19:42:03 +0000
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