Abstract

This study examines the challenges that micro, small and medium enterprises (MSMEs) face and provide insights on African business environment and entrepreneurial ecosystem. In the context of growth-oriented entrepreneurship, good policies and favourable institutional environments supports firms’ growth, productivity and development, while adverse formal and informal institutions constrain business development and growth. Secondary data from World Bank Enterprise Survey (WBES) was used to capture barriers to entrepreneurship and high-growth opportunities which include five major challenges – lack of finance, lack of innovation and technology, low skilled workforce, poor infrastructure, taxation, regulations and more pervasively corruption. These barriers are evident in the micro, meso and macro environments. These has implications on unemployment rate, poverty rates and economic growth of African region.