Cultural diffusion and entrepreneurship in Sub-Saharan Africa: a culture-based development revisited

PurposeThe purpose of this study is to investigate the impact of cultural diffusion on entrepreneurship by revisiting the "culture-based development" (CBD) theory in the context of Sub-Saharan Africa (SSA). The goal is to explore how the supply of cultural goods and services, as well as trade in cultural activities, influences entrepreneurial activities in the region.Design/methodology/approachThe research utilizes an explanatory analysis based on the generalized least squares method. The analysis is applied to a sample of 38 SSA countries over the period from 2007 to 2021, using robust econometric triangulations to confirm the validity of the results.FindingsThe results show that cultural diffusion has a positive effect on entrepreneurship in SSA. An increase in the production and trade of cultural goods and services, such as films, music and recreational events, correlates with a higher rate of new business creation. Furthermore, cultural diffusion indirectly supports entrepreneurship by improving institutional factors such as corruption control (41% contribution), political stability (40%) and financial development (53%).Research limitations/implicationsThe study is limited by the availability of comprehensive data for all cultural activities across SSA, as well as by the challenge of isolating cultural diffusion from other socio-economic factors. Theoretically, this research contributes to the understanding of culture as an institutional factor influencing entrepreneurship and offers a foundation for future studies on the intersection of culture and economic development.Practical implicationsThe findings suggest that fostering cultural diffusion through the development of cultural sites, liberalizing trade in cultural goods and implementing inclusive cultural policies can boost entrepreneurial activities. This has important social and economic implications for policy makers aiming to leverage cultural resources to stimulate sustainable economic growth in SSA.Originality/valueThis research revisits the CBD theory, offering new insights into the role of cultural diffusion as a proto-institution in entrepreneurship development. By focusing on SSA, it expands the application of this theory to regions that have been understudied in the literature, providing evidence of culture's influence beyond traditional economic indicators.