Journey from Beijing to Accra to reveal how local entrepreneurs can fuel national development
If we look back at history and by convention, the development of nations has been the primary responsibility of the central government. Governments, in their entirety, are or have been responsible for constructing roads, hospitals, electricity, water supply, and creating jobs. The role of the central government in national development is or has been even more significant in developing nations, such as those in sub-Saharan Africa. However, the complexities of our modern societies make this approach to development less viable. Governments of developing nations like Ghana often lack the funding to solely develop the institutions, infrastructure, and human resources necessary for stronger growth and a faster end to poverty. For instance, 15 of the 45 countries in sub-Saharan Africa have government revenues that are less than 15% of their GDP, though the exact count may vary from year to year. Additionally, government revenue in resource-rich countries in sub-Saharan Africa is less stable and higher than in resource-poor nations (Izvorski and Karakülah 2019). Therefore, there is a need for private participation through entrepreneurship. For clarity, government revenue specifically refers to the money collected by the government, including taxes, duties, levies, royalties, and other fees. In contrast, Gross Domestic Product (GDP) measures the total value of goods and services produced in the economy over a specific period. In other words, GDP reflects the overall economic activity within a country, while government revenue represents only the portion of that economic activity (including resource-based inflows) that contributes to the government’s budget. The Chinese government, for example, recognised a critical truth in the late 20th century: centralised economic planning had limitations. Starting circa 1978, China shifted towards market-oriented reforms, quietly allowing private entrepreneurship to thrive. This strategic pivot drove exceptional growth, enabling China, with over a billion people, to surpass Japan as the world’s second-largest economy by 2010. By 2023, China’s GDP exceeded $19 trillion, reflecting decades of private-sector innovation, infrastructure development, and strategic state support. This journey underscores the transformative power of local entrepreneurs in national development. Ghana can achieve similar success. With a GDP of around $77 billion and a population now estimated at over 34 million, Ghana possesses significant untapped potential. By empowering local entrepreneurs through supportive policies, infrastructure investment, technological innovation, and human capital development, Ghana can accelerate economic growth and resilience. Accra’s pathway to prosperity could mirror Beijing’s: leveraging local entrepreneurship, unlocking private sector creativity, and pursuing strategic economic reforms. Ghana can fuel substantial national development, drive prosperity and significantly improve living standards across the country. The importance of entrepreneurship in nation-building cannot be overstated. From a public policy perspective, several authors have emphasised the value of an entrepreneurial environment in fostering economic development through the establishment of new businesses (Malecki, 1994; Reynolds et al., 2001). Indeed, evidence suggests a strong positive correlation between entrepreneurship and national growth (Rocha 2004). To this end, by way of a working definition, entrepreneurship is the process through which individuals pursue opportunities without regard to the resources they currently control. An entrepreneur is thus an individual who assembles and integrates all the resources needed to transform an invention or idea into a viable business. According to Nafukho (1998), an entrepreneur is a bulldozer who can turn a hurdle into a stepping stone. The author further states that an entrepreneur can move any mountain. He is an aggressive and creative innovator who fosters the connections necessary for launching a new company. Hayton (2002) also defines entrepreneurship as the process of identifying a need-satisfaction-related opportunity and turning it into something of value. It can also be considered the procedures and actions taken by business owners to profit from business opportunities. Otaki (2003) then states that entrepreneurship is the process of establishing a new economic entity focused on cutting-edge goods or services. Entrepreneurs are key players in any nation’s ability to stimulate entrepreneurship, which can be seen as a national asset. It is a dynamic process that goes beyond profit-making to value creation, enhancing well-being alongside wealth growth. According to Barringer and Ireland (2016), there are three primary reasons why people choose to be entrepreneurs and start their businesses: (1) they want to be their own boss, (2) to pursue their ideas, and (3) to achieve financial rewards. As a result, many individuals view entrepreneurship as a desirable career path. Think about your acquaintances and friends; there is a good chance you know one or two people who aspire to start their own business, either now or in the future. Another indication that entrepreneurship is increasingly popular is the growing number of books written about starting a business. For example, Amazon.com currently lists over 89,900 books on small businesses and more than 36,900 items related to entrepreneurship. In 2013, there were 62,700 books on small businesses. Today, that number has undoubtedly and significantly increased (Barringer and Ireland 2016). Conversely, national development refers to a nation’s ability to continuously improve the welfare or quality of life of its people in areas such as education, economics, health, recreation, and more. As mentioned earlier, numerous intellectual advances have been made to prove the connection between entrepreneurship and economic growth. The Global Economic Monitor (GEM), a research organisation funded by Babson College in Massachusetts, US, and the London Business School, is dedicated to examining how entrepreneurship and economic development are related and how entrepreneurship can be fostered, particularly in developing nations. GEM conducts an annual study that can include up to 42 countries, and the findings are made public for global consumption. According to Hisrich and Peters (1998), increasing per capita output and income, as well as “initiating and constituting a change in the structure of business and society,” are what cause the relationship between entrepreneurship and economic development to exist. These authors also state that entrepreneurship programs have revitalised impoverished neighbourhoods in various countries. Ahiauzu (2010) has researched the role of entrepreneurship in Ghana’s economic development. He starts by referencing Dejardin (2000), who asserts that “an increase in the number of entrepreneurs leads to an increase in economic growth.” Morrison (2000) contends that