An evaluation of human capital theory and female entrepreneurship in sub-Sahara Africa

Abstract

Purpose The study aims to evaluate critically how the elements of human capital theory such as level of education, area of education, training and prior work experience influence female entrepreneurship in sub-Saharan Africa, with focus on Ghana. Though it is very critical that the elements of human capital are known and assessed, there is currently very little known about the elements of human capital as pertains to female entrepreneurship in Ghana. This situation has called for a study such as this one. Design/methodology/approach A phenomenological paradigm was adopted for the study. This includes in-depth interview, documentation and observation. Unlike narrative research that reports on lived experiences of an individual, phenomenological study focuses on describing the lived experiences of several individuals. It is mainly a descriptive account of shared experiences of those individuals located near universal lived experience(s). Findings Reporting data from a 2014 qualitative in-depth interview of 25 women entrepreneurs in Accra who work in service delivery, manufacturing and trading, it was revealed that level of education, business training and knowledge gained during the course of their work were crucial factors for their success. As a consequence, this study calls for effective policies that will encourage education and training of women entrepreneurs, especially those with low levels of education, on a sustainable basis. Research limitations/implications The study focused on some of the elements of human capital and women’s entrepreneurship in Ghana. However, there exist other issues that are critical to the development of female entrepreneurship in the sub-Saharan region that can be explored to provide more insight on this subject or different context. Practical implications The human capital dimensions which were evaluated for this study included level of education, area of education, business training and experience gained from prior employment. The outcome is that these elements are crucial for the success of women entrepreneurs in Ghana, but there is the need for wider research in other global regions on women entrepreneurs and human capital factors and whether similar variations prevail. Originality/value Evidence from the literature reveals that little is known until now to evaluate the elements of the human capital of female entrepreneurs in Ghana, and this study seeks to bridge this gap. Results are examined comparing what is pertaining in other international communities, thus avoiding a merely national viewpoint.

Doubly Disadvantaged: Gender, Spatially Concentrated Deprivation and Nascent Entrepreneurial Activity

“…Rates of entrepreneurial activity are negatively correlated with spatially concentrated deprivation (Devins, 2009; Williams and Huggins, 2013; Frankish et al, 2014; Williams et al, 2017; Williams and Williams, 2017). Also, female entrepreneurship rates are found to be correlated with human capital (Caliendo et al, 2014; Adom and Asare‐Yeboa, 2016; Marvel et al, 2016; Brush et al, 2017). However, the mutual effects of these relationships have not been disentangled, despite Gunnerud's (1997, p. 267) warning that ‘when studying entrepreneurs one should be aware of the fact that one studies gendered beings in gendered places’.…”

Human Capital and Theory of Planned Behavior: Unraveling Entrepreneurial Intentions of IT Students in Pakistan

“…All of these human capital variables may stimulate or hamper entrepreneurship behavior of individuals (Hindle et al, 2009). Human capital theory indicates that both knowledge and experience affects the cognitive decision making process of individuals which permits them to identify more entrepreneurial opportunities (Adom et al, 2016;Davidsson & Honig, 2003;Hindle et al, 2009;Li et al, 2018).…”

“…Recently, public policy has increased its focus in stimulating and developing entrepreneurial activities since they are considered vibrant for the creation of innovation (Brancu et al, 2015). In countries with different levels of economic developments, governments see the entrepreneurship, because of its numerous advantages, as the key to deterioration of different glitches of society, growing self-employment in an economy, national and international level attractiveness and creation of new venture (Adom et al, 2016;Thornton et al, 2011). Prior studies explained that entrepreneurial activities are not high among the highly educated people (Nabi et al, 2010).…”

A critical assessment of work and family life of female entrepreneurs in Sub-Saharan Africa

“…Overview of women entrepreneurship Businesses owned and managed by women have surged worldwide since the turn of the millennium (Adom and Asare-Yeboa, 2016;Bruni et al, 2004). In 2012, an estimated 126 million women were starting or running businesses in 67 economies worldwide (GEM, 2012b).…”

“…In the field of female entrepreneurship, performance and business success research has captured the attention of many researchers (see, Adom and Asare-Yeboa, 2016). According to, business performance is measured with various methods and whilst some are very simple others are highly sophisticated and complex.…”