TY  - RPRT
        AU  - Schwidrowski, Zuzana Brixiova
AU  - Ncube, Mthuli
        TI  - Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia
        PY  - 2013/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7553
        UR  - https://www.iza.org/index.php/publications/dp7553
        AB  - Since mid-2000s, Ethiopia has been one of the fastest growing countries in the world. However, productive entrepreneurship in high-value added activities has made limited contributions to this growth, in part because of a weak business environment. Moreover, the low-productive firms in the informal sector still account for a large share of employment. Reflecting these facts, this paper presents a model of costly entrepreneurial start-ups in an economy with a large informal sector and rigid business environment where an equilibrium outcome can be a low-skill, low-productivity trap. By fostering productive start-ups and skilled employment, creation of an enabling business environment could help move the Ethiopian economy into high-productivity equilibrium.
        KW  - entrepreneurship
KW  - SME start-ups
KW  - low productivity trap
KW  - multiple equilibria
KW  - Africa
        ER  -