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The mediating effect of entrepreneurship on financial support and economic growth in African emerging economies

Luisa Tomas Cumba (School of Economics and Management, University of Science and Technology Beijing, Beijing, China)
Xiaoxia Huang (School of Economics and Management, University of Science and Technology Beijing, Beijing, China)
Zenglian Zhang (School of Economics and Management, University of Science and Technology Beijing, Beijing, China)
Sagheer Muhammad (School of Economics and Management, University of Science and Technology Beijing, Beijing, China)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 26 February 2024

156

Abstract

Purpose

The aim of the research is to examine in depth the relationship between financial support, entrepreneurship and economic growth in emerging African economies.

Design/methodology/approach

The study adopts the system-generalized methods of moments (sys-GMM) technique for data analysis and hypothesis testing on a sample of 34 African emerging economies (340 observations) from 2010 to 2019.

Findings

The results show that there is significant positive correlation between financial support, entrepreneurship, and economic growth. Moreover, entrepreneurship served as a partial mediator between financial support and economic growth in African emerging economies.

Practical implications

This research suggests that African governments should focus on entrepreneurial systems, which are essentially networks driven by the pursuit of individual opportunities and the promotion of new business creation; and introduce other forms of financial assistance, such as loans, loan guarantees, interest subsidies, technical assistance, insurance, etc.

Originality/value

The main novelty of the paper is that the authors empirically investigate the mediating role of entrepreneurship in the association between financial support and economic growth in 34 African emerging economies.

Keywords

Acknowledgements

I would like to express my sincere gratitude to my supervisor, Pr. Xiaoxia Huang for the massive support of my research, for her patience, motivation, enthusiasm, and immense knowledge, and the University of Science and Technology Beijing (USTB) for cooperation.

Citation

Cumba, L.T., Huang, X., Zhang, Z. and Muhammad, S. (2024), "The mediating effect of entrepreneurship on financial support and economic growth in African emerging economies", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-03-2022-0453

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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