INFRASTRUCTURE AND ENTREPRENEURSHIP: EVIDENCE FROM AFRICA

Closing the infrastructural gaps and fostering the entrepreneurial processes are considered the key to reduce African unemployment and boost productivity to achieve inclusive development. -Therefore, investment in infrastructure is crucial for creating a conducive entrepreneurial environment. In this paper, we provide a contribution for this purpose, by evaluating the impact of infrastructure on entrepreneurship in a panel of twenty African countries for a period of 2006-2018. Consistent with previous studies, we find that infrastructures play a significant role in improving entrepreneurial development. In specific, we show that transport, electricity, water and sanitation facilities, ICT and broadband infrastructures have a positive and significant effect on entrepreneurial startups in Africa. Our reports show clearly there is a positive association between infrastructures and entrepreneurial startups at a one percent significance level. These findings are robust to alternative estimation. It points out that physical infrastructure is more relevant in the case of less developed countries in -promoting entrepreneurial development.