A COMPARATIVE STUDY ON ASIA AND EUROPE ON START-UP LED INNOVATIONS AS A VEHICLE FOR DEVELOPMENT: ANY LESSON FOR AFRICA CONTINENTAL FREE TRADE AREA

Keywords: Africa Continental Free Trade Area, Innovation, Start-up.

Abstract

This study investigates opportunities that African governments can pursue in furthering their development agenda by leveraging the market's affinity for mobile technology and the momentum built by fintech firms in mobile-based innovation. The study reviews secondary data on innovation-led development initiatives and compares strategies adopted by countries across Europe, Asia, and Africa. The results reveal that Europe and Asia have inculcated structured use of Research and Development in start-up ecosystems to ensure that innovation addresses specific development agendas. In contrast, Africa abounds with high-value natural resources, yet the continent's manufacturing sector is regressing, with intra-Africa trade in consumer goods stagnating at 13% for decades. The study's findings point out that African governments recognize the role start-ups play in addressing unemployment and attendant poverty in Africa. Fintech start-ups and innovators have been at the forefront of delivering financial services using mobile telephony to communities hitherto financially excluded. The success of African mobile money innovations is widely published, and fintech start-ups have attracted the interest of venture capitalists – where 62% of investment funds flowing to start-ups are committed to the fintech sector. There is limited traction in using innovation to address issues like access to potable water, clean energy, affordable healthcare, and quality education.

JEL Classification Codes: B17, F13.

Author Biographies

Victor Otieno, Managing Director, Viffa Consult Limited, Kenya

Victor Otieno MBA (Entrepreneurship), BCOM, CPA (K), is the managing director of Viffa Consult. He is an independent management consultant specializing in Micro, Small, and Medium Size Enterprises (MSMEs) and Startups. Victor is deeply passionate about the African Entrepreneur and has so far worked with over 400 organizations in over 5 African countries in East and Southern Africa. After qualifying as a Certified Public Accountant, Bachelor Of Commerce (Finance and Accounting) from Strathmore University and working for several years in civil society and the private sector, he started his firm in 2013. Victor has worked with over 400 partner organizations, including; International and regional NGOs, Universities, Government Agencies and Parastatals, Private companies, and Community Organizations, among others. Victor advises on and provides research support to entrepreneur support organizations, SME policy organs, SMEs, and Startups.

Stephen Muathe, Senior Lecturer, Kenyatta University, Kenya

Dr. Muathe holds an earned PhD in Entrepreneurship and Management (Kenyatta University), MBA (Management) (USIU-A) and BEd (A) (Business Studies and Economics) from Kenyatta University, Kenya. He is a Full Member of The Kenya Institute of Management (KIM). In addition Dr. Muathe is the current Chairman Board of Management at Mutwamwaki Mixed day Secondary school. Dr. Muathe has over 11 years experience in teaching, research and Consultancy work in areas of Business management, Business Planning, Micro, Small and Medium enterprises, Project Monitoring and Evaluation, In addition he serves as an Internal and External examiner of MBA Projects, MSc and PhD theses.

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Published
2022-07-30
How to Cite
Otieno, V., & Muathe, S. (2022). A COMPARATIVE STUDY ON ASIA AND EUROPE ON START-UP LED INNOVATIONS AS A VEHICLE FOR DEVELOPMENT: ANY LESSON FOR AFRICA CONTINENTAL FREE TRADE AREA. American International Journal of Social Science Research, 12(1), 14-22. https://doi.org/10.46281/aijssr.v12i1.1776
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper