Emerging market economy in terms of its support to Entrepreneurship

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INTRODUCTION

The current world is experiencing a prompt economic shift due to the challenges faced by the developed economies like Europe and USA from the emerging economies.

The emerging economies include countries that have low incomes,poor living standards,less developed rules, have cultural norms and rely mostly on economic liberalization for their development.

After the BRIC’s (Brazil, Russia, India, China and South Africa) and MINT’s (Mexico, Indonesia, Nigeria and Turkey) a UK magazine named marketer has placed GHANA in the list of upcoming emerging market economies.

The emerging market economy that I am considering for this essay topic is also GHANA. Hence, I will be discussing the profile of Ghana in terms of its support of entrepreneurship (Guillen, 2000).

I particularly intend to answer this stimulating topic by firstly providing answer to the question “why is GHANA an emerging market economy “?

Ghana achieved independence from British rule in 1957 and appeared on the world map as the first Black Country. After independence, Ghana faced socio-economic hardship due to political instability and it was in 1980’s that the growth of this country ceased and moved into negative figures (Bresinger et,al., 2008).

In 1984 Ghana was made a part of a recovery program named economic recovery program (ERP) which brought political stability to the country and further shifted   their economic growth to a positive and stable development rate of 4% to 5% (ISSER,2008).

Ghana is still facing many challenges that include poverty,lack of education,poor financial resources but overall the business in Ghana is flourishing. The development indicators of 2011 show that Ghana has a highest GDP/capital in west Africa and it is considered as a low income emerging country(ISSER,2013).

The growth indicators of 2013 shows that this country has shown an increase of 8% in its GDP,which is a quite impressing figure. The growth indicators of 2011 further show that the GDP and GDP/capita of this country has raised from us$5 billion in 2000 to us$40 billion in 2011 (ISSER,2013).

Although,the country didn’t show the same momentum in 2012 but the overall growth of Ghana was 2% higher as compared to the other countries in the sub-region.Only few economies of the world including both developed and developing economies have shown such a steady growth rate like Ghana (Bresinger et,al 2008).

The confidence of global markets in Ghana was recently shown when US provided Ghana with us$2.2 million whereas the country was in need of only us$1 million to financially support its infrastructure and important projects (Africa watch,2013).Emerging market economy in terms of its support to Entrepreneurship

The signs for Ghana are very impressive and attracting as an emerging economy with second big gold mine industry,biggest cocoa producer, and increase in the price of commodities,oil producing economy and good infrastructure.Emerging market economy in terms of its support to Entrepreneurship

Emerging market economy in terms of its support to EntrepreneurshipAnalyst proclaim that the with the construction of  more shopping malls  more people will be attracted towards Ghana instead of south Africa and other west African countries (Africa watch, 2013)

Earlier during 1960’s large firms were the main source of boosting economy but since then the trend has reversed. Today there is a significant proof showing that the entrepreneurship and growth of economy are interrelated (Audretsch et al, 2002).

Cole defines entrepreneurship as the activity which is initiated by an individual to start up its own business.

The benefits of entrepreneurship are numerous according to bridges.org (2002) when people have more confidence,financial resources they can easily cope with corruption and poor living standards. Due to these same reason it is clearly visible that entrepreneur ship is significantly important for Ghana at both micros and macros levels.

The entrepreneurs in Ghana are coming across many hurdles and obstacles. These hurdles include lack of infrastructure,institutional voids,corruption,lack of resources that include finances and education and legal and regulatory framework   (Bridges.org, 2002).

There are different types of entrepreneurship that are prevalent in Ghana. Some of the types that are also mentioned in the module includes female entrepreneurship,necessity vs opportunity based entrepreneurship,innovative idea based entrepreneurship, social entrepreneurship etc.

However,innovative idea based entrepreneurship is not very common in Ghana because the Ghanaian love to imitate rather than to innovate.in silicon valley to innovate means to provide ideas to solve problems that are currently not existing whereas innovation in a continent such as Africa means to create new technologies to address older issues (Francis Pisani, 2011)……