Entrepreneurship and Economic Development in Africa Flashcards

A set of vocabulary flashcards covering the economic importance, challenges, and strategies for entrepreneurship within the Nigerian content.

Resource Curse

A paradox where resource-rich countries experience slower economic growth and higher inequality, often linked to oil dependency in Nigeria.

Creative Destruction

A Schumpeterian tradition where entrepreneurs replace inefficient incumbents with more innovative products, services, or business models.

SMEs (Small and Medium Enterprises)

The backbone of employment in Nigeria, accounting for approximately $96\%$ of all businesses and contributing about $48\%$ to national GDP.

Necessity-driven Entrepreneurs

Individuals who often create precarious, low-income jobs due to a lack of other employment options.

Opportunity-driven Ventures

Scalable businesses that have the potential to generate higher-quality employment with better wages and working conditions.

Andela

A company founded by Iyinoluwa Aboyeji and Jeremy Johnson that trains and places African software developers with global technology companies.

Transmission Mechanism

A concept by Acs and Varga (2020) describing entrepreneurship as a tool that converts knowledge, innovation, and opportunity into tangible economic outcomes.

Fintech Revolution

Innovation driven by companies like Flutterwave and Paystack that addressed unreliable infrastructure and low digital trust in payment processing.

Doing Business Reports

World Bank assessments that have historically ranked Nigeria poorly on indicators like starting a business, registering property, and enforcing contracts.

Infrastructure Deficits

Operational burdens such as power, transportation, and digital deficiencies that increase costs and reduce competitiveness for Nigerian entrepreneurs.

Financing Gap

The multi-billion naira shortage in affordable finance available to MSMEs in Nigeria, as estimated by the CBN (2024).

Human Capital Mismatch

The gap between educational curricula and labor market needs, resulting in graduates lacking practical, job-ready skills.

Co-creation Hub (CcHUB)

A Lagos-based hub for technology entrepreneurship that provides support through mentorship, incubation, and acceleration.

Youth Underemployment

A condition affecting over $40\%$ of young Nigerians, alongside unemployment, as reported by the National Bureau of Statistics (2024).

Entrepreneurial Ecosystem

A vibrant network composed of mentorship networks, co-working spaces, incubators, accelerators, and investor networks.