Economic Development Obstacles in Africa and the Middle East. Reasons for the Slow Development of Entrepreneurship

Résumé ou Introduction

This paper analyses what may be the reasons for Africa and the Middle East seemingly lagging behind other world regions in terms of economic development. It explains why entrepreneurship has been slow to develop in the region, and gives suggestions for how it may be developed more assertively. The problems that may constitute the reasons for lagging behind others may be inadequate education systems, division and war or heavy administrative procedures. Furthermore, difficult access and high-lending interest rates as well as colonialism consequences can be a reason. Income or poverty in the regions may reduce the demand for goods and services, support high corruption, lead to low salaries and wages for states employees and insufficient savings for workers to begin new business.

Education in Africa is a heritage of the colonial system which did not intend to develop entrepreneurship in colonized countries. Courses are dominated by modules that are not related to entrepreneurship, but full of content like foreign literature like French and English or History. Courses offered by universities are disconnected to labor market needs and new technologies. Courses are full of theory without practical knowledge. Professional courses are limited, and graduates lack in practical knowledge.

Secondly, African countries are not united. Some of them have much diversity in culture, religion and ethnics. But instead of using the diversity to generate new ideas, creativity and innovation, the diversity is the basis of war in African countries. No entrepreneur can engage seriously in a country at war. Molem indicated Cameroon had linguistic and cultural diversity with more than 289 ethnic groups, and a colonial legacy of French and English cultures and languages, plus remnants of a German substratum.