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Empirical Analysis of the Impact of Institutions on Innovative Entrepreneurship in Sub-Saharan African Countries

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Innovation, Entrepreneurship and the Informal Economy in Sub–Saharan Africa

Part of the book series: Sustainable Development Goals Series ((SDGS))

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Abstract

The design of an institutional framework capable of promoting innovative entrepreneurship is an important component of any social, political and economic reforms. This framework is crucial in speeding-up the entrepreneurial activities, structural and economic development, particularly in developing countries. Therefore, this study examines the impact of institutions on the growth of innovative entrepreneurship in Sub-Saharan African countries. The study employs a two-stage least square technique to analyze a panel data consisting of 20 Sub-Saharan African countries covering the periods 2001 to 2018. Using the year fixed and robust standard error options which control for time constant at the country’s level and correct for the threat of multi-collinearities respectively, the result provided evidence in support of a strong link between institutions and entrepreneurial activities in the Sub-Saharan African countries. The overall results suggest that policy reforms aimed at achieving entrepreneurship growth, and economic development must implement institutional reforms that allow for innovative entrepreneurial activity to flourish.

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Authors and Affiliations

  1. Department of Economics, Usmanu Danfodiyo University, Sokoto, Nigeria

    Muftau Olaiya Olarinde & Shehu Auta

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  1. Muftau Olaiya Olarinde
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  2. Shehu Auta
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Correspondence to Muftau Olaiya Olarinde .

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Editors and Affiliations

  1. Department of Business Administration, Chrisland University, Abeokuta, Nigeria

    Ayodotun Stephen Ibidunni

  2. Accounting and Finance Department, Nottingham Trent University, Nottingham, UK

    Oyedele Martins Ogundana

  3. Department of Business Administration, London Metropolitan University, London, UK

    Maxwell Ayodele Olokundun

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Olarinde, M.O., Auta, S. (2024). Empirical Analysis of the Impact of Institutions on Innovative Entrepreneurship in Sub-Saharan African Countries. In: Ibidunni, A.S., Ogundana, O.M., Olokundun, M.A. (eds) Innovation, Entrepreneurship and the Informal Economy in Sub–Saharan Africa. Sustainable Development Goals Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-46293-1_11

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  • DOI: https://doi.org/10.1007/978-3-031-46293-1_11

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