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Challenges of Algeria’s Economic Development: A Youth Entrepreneurship Perspective

Enterprise and Economic Development in Africa

ISBN: 978-1-80071-323-9, eISBN: 978-1-80071-322-2

Publication date: 11 June 2021


This chapter develops a conceptual framework of economic development of Algeria with a particular focus on youth entrepreneurship. Drawing on the opportunity-based approach of Drucker (1985) and the impact analysis theory (IAT) advocated by Murphy and Marvel (2008), Lenjo (2015), and Dontigney (2018), this proposed conceptual framework theoretically allows the integration of different perspectives including economic development of a country and youth entrepreneurship. In principle, the opportunity-based theory posits that entrepreneurship represents a response to a stimulus, through a business venture, where an unemployed person exploits opportunities engendered by social, technological, and cultural changes in the environment. The IAT is a paradigm that deconstructs the causes and effects of a phenomenon (i.e. youth entrepreneurship) to afford greater understanding and appreciation of the research agenda, while providing an indicative assessment of the overall impact of the issue (OECD, 2014). The authors discuss the core barriers (venture capital, foreign direct investments, bureaucratic obstacles, gender discrimination, and soft skills) to entrepreneurship in Algeria, Furthermore, the authors assess the different economic forces in Algeria that appear to be promoting or sustaining entrepreneurship, particularly in young people. These forces have a tendency to be connected to a broader possibility of economic development. Further analysis is required that demonstrates the potential upsides of promoting youth entrepreneurship. Thus, the authors attempt to answer a key question: What can be done to engage the youth in small business entrepreneurship across Algeria and thus implement a sustainable solution to the country’s employment problem?



Osmani, A. and Beloucif, A. (2021), "Challenges of Algeria’s Economic Development: A Youth Entrepreneurship Perspective", Nziku, D.M. and Struthers, J.J. (Ed.) Enterprise and Economic Development in Africa, Emerald Publishing Limited, Leeds, pp. 173-191.



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