THE ROLE OF GOVERNMENT POLICY IN FOSTERING ENTREPRENEURSHIP: A USA AND AFRICA REVIEW

Authors

  • Adeola Olusola Ajayi-Nifise Department of Business Administration, Skinner School of Business, Trevecca Nazarene University, USA
  • Sunday Tubokirifuruar Tula Ignition Ajuru University of Education, Rivers State, Nigeria
  • Onyeka Franca Asuzu Dangote Sugar Refinery Plc, Lagos, Nigeria.
  • Noluthando Zamanjomane Mhlongo Department of Accounting, City Power, Johannesburg, South Africa
  • Funmilola Olatundun Olatoye Independent Researcher, Houston, Texas, USA
  • Chidera Victoria Ibeh Harrisburg University of Science and Technology, USA

DOI:

https://doi.org/10.51594/ijmer.v6i2.775

Abstract

This Review explores the crucial role of government policies in fostering entrepreneurship by examining the experiences of the United States (USA) and various African nations. Entrepreneurship is a driving force for economic growth, job creation, and innovation, and government policies play a pivotal role in shaping the entrepreneurial landscape. In the USA, a robust history of entrepreneurial success is attributed in part to supportive government policies. The Review delves into specific policies that have contributed to fostering entrepreneurship, including tax incentives, access to funding through Small Business Administration (SBA) programs, and initiatives promoting innovation and research. The analysis extends to the regulatory environment, emphasizing the importance of flexible regulations that encourage innovation while ensuring consumer protection. Turning attention to Africa, the Review explores the diversity of government approaches across the continent. It considers initiatives implemented by African nations to promote entrepreneurship, such as the establishment of entrepreneurial ecosystems, funding mechanisms for startups, and efforts to streamline regulatory frameworks. The review acknowledges the unique challenges faced by African entrepreneurs, including limited access to capital and infrastructure constraints, and evaluates how government policies aim to address these issues. The comparative analysis highlights lessons that African nations can draw from the USA's successful policies, such as the importance of fostering a culture of innovation, providing targeted financial support, and creating an enabling regulatory environment. Moreover, it emphasizes the need for context-specific policies that consider the unique socio-economic conditions of each African nation. In conclusion, the Review underscores the critical role of government policy in nurturing entrepreneurship, drawing insights from the USA's experience and the varied approaches across African nations. It calls for a nuanced understanding of the diverse African entrepreneurial landscape and encourages policymakers to tailor initiatives that catalyze entrepreneurship, driving economic development across the continent.

Keywords: Role, Government, Policy, Fostering, Entrepreneurship.

Published

2024-02-13

Issue

Section

Articles