I first encountered African entrepreneurship at a tender age when my mother would send me to the local shops to buy essential household goods such as paraffin, batteries, sugar, and salt. These shops, run by micro-entrepreneurs, operated quite differently from modern entrepreneurship. Instead of seeking to exploit opportunities, they rationed supplies, ensuring equitable distribution within the community. Their ethos was rooted in fulfilling a social duty rather than maximizing profits. This approach was especially evident during Christmas when demand exceeded supply, yet everyone was cared for.
Years later, after completing my undergraduate studies, I returned home to learn from one of the seasoned businessmen whose business had thrived for decades. He attributed his success to not exploiting their monopoly status for personal gain. For him, prioritizing the well-being of the community over profit was paramount. He believed that such a stance not only garnered societal acceptance but also brought blessings to his family.
My understanding of African entrepreneurship deepened during my doctoral research at Kariobanngi Light Industries in Nairobi. Here, entrepreneurs engaged in collaborative efforts, reverse engineering products to compete in the market. This spirit of collaboration was broader than Kariobanngi. I observed similar dynamics in areas like Kamukunji Nairobi, where small-scale fabricators focused more on social mobility than scaling their enterprises. President Moi’s initiative to build shades for roadside manufacturers inadvertently fostered a culture of collaboration and resource-sharing among micro-entrepreneurs, shaping the landscape of African microenterprises.
During the peak of COVID-19 in 2019, my colleagues and I tried to help female vegetable vendors reach their clients by using an improvised WhatsApp messaging marketplace to observe government shutdowns. After teaching five participants how to connect with motorbike riders and transport supplies to customers’ homes, we thought they would keep it a secret from other competitors, but we needed to be corrected. Most of the women in the cluster and beyond soon had training from the initial five when they took the idea to their rivals in the market. They almost unanimously said they would have felt bad if their rivals languished in their houses without making a sale in response to why they shared the idea. They later organized themselves so that each became an expert in a specific type of vegetable.
Professor Weis, Imperial College, and others studied mechanics in Dagoreti Corner, discovering that seemingly competing businesses often clustered together. Contrary to conventional wisdom, these clusters facilitated savings, investments, and mutual support through informal associations like chamas (informal investment groups) and Saccos. This collaborative ecosystem enabled joint investments and skill development programs and even came as an insurance among peer businesses.
Weis and his colleague concluded that these informal welfare systems were essential as they mitigate loss, encourage savings, and create employment opportunities. They advocated for policies that bolstered these systems, rather than replacing them, to promote firm and employment growth. This cooperative ethos, rooted in community welfare, echoes the philosophy of Kenyan Christian thinker John Mbithi’s idea of “I am because we are and since we are therefore, I am,” capturing an essential facet of this kind of relational, subjective development based on distance. Mbithi maintains an affirmation of human subjectivity that stresses the interdependence of all community members and puts the good of the community above the good of the individual.
Although the idea could be more robust in innovation, it exhibits adaptability to new ideas. Policymakers should support research labs to foster innovation within these clusters. For instance, the furniture cluster in Dagoreti, Nairobi, has successfully leveraged emerging technologies to access global e-commerce platforms, showcasing the potential for innovation within traditional frameworks. It is a cluster that could be quickly catapulted into a worldwide competitor if investment in modern machinery is available and training is done on the job. Successful policymaking is context-specific, and the faster Africa comes to terms with that, the better it is for the future of millions of youth on the continent.
In exploring the collaborative essence of African entrepreneurship, it becomes evident that traditional models prioritize community welfare over individual profit, fostering a network of interconnected businesses that thrive through mutual support and resource-sharing. From my early experiences in the Kisii highlands to observations in bustling Nairobi markets, the ethos of communal enterprise remains a driving force, shaping the landscape of microenterprises across the continent.
Through informal associations like chamas and Saccos, entrepreneurs pool resources, invest jointly, and provide essential support systems, showcasing the resilience and adaptability of these clusters. As we look towards the future, policymakers must recognize and nurture this unique ecosystem. By fostering innovation while preserving the cooperative spirit that underpins African entrepreneurship, we can unlock the full potential of these clusters, empowering communities and driving sustainable economic growth throughout Africa.
This article was first published by Kenya’s Ambassador to Belgium & EU Amb Prof. Bitange Ndemo, on Brussels Dilpo Express.Â
