Promoting Grassroots Entrepreneurship and Innovation in the IGAD Member States

Mengsteab Tesfayohannes & Mussie Tessema

Introduction

The Intergovernmental Authority on Development (IGAD) is an eight-country trade and developmental regional bloc in the greater Horn of Africa. It includes eight states: Djibouti, Eritrea, Ethiopia, Kenya, Somalia, the Republic of South Sudan, and the republic of Sudan. The region is one of the most geo-politically important corners of the world in terms of its diversified climate, potential mineral and human endowments, agricultural endowments, natural panoramic tourism attractions, archaeological and historical heritages, water resources, etc.  Unfortunately, the region did not benefit from its vast potential resources and capabilities as required during the past several decades.

This was due to internal and external destabilizing factors related to past colonialism, ethnicity, tribalism, resource sharing, poverty, superpower rivalry, porous borders, hegemonic desires, ineffective macro-economic management, lack of good governance and undeveloped institutional and socio-economic infrastructures and weak participation of the bulk of the population in vital political and socio-economic developmental activities.

However, the region is now rising up towards a better position. We can validate this optimism by observing the major socio-economic development indicators. In countries like Ethiopia, Djibouti, Kenya and Uganda, noticeable growth has been registered during the last 20 years (World Bank, 2013; African Development Bank Report, 2012; IMF, 2013; IGAD Report,2010). However, the region still has a long way to significantly exploit its vast potential of human and physical resources’ endowments and curb its deep-rooted socio-economic, political and peace and security problems (Healy, 2011; Headey, 2012).
 
Benefiting from the Technological and Entrepreneurial Innovation

During the last thirty years, our world has gone through an avalanche of socio-economic, technological and political changes and developmental milestones (Rodrick, 2014; Lin, 2011). Ground breaking technological inventions and entrepreneurial innovation are now mushrooming everywhere including in the developing nations. Our planet is becoming vastly interconnected, more interdependent and fast integrating. Acquiring useful knowledge at all levels is now cheaper than any time before due to the power of modern information technology and wider outreach of educational facilities.Nations have now more opportunities to benefit from the currently available global stock of knowledge and technological revolution.

The IGAD nations should also benefit from this widely available window of opportunities and valuable vast resources.  This can be done by promoting entrepreneurial innovation in a broader way. Promoting entrepreneurship and innovation by expanding its outreach in a smarter way and sediment it as a culture in everyday life of the society in general and that of the young population in special is essential. The young generation in particular needs to actively engage in the national economic developmental process at mega, macro, mezzo and micro levels incorporating all stakeholders. It is true that enhancing the vital nation building process, among others, emanates from disseminating the culture of innovation and entrepreneurial initiatives among the bulk of the population. IGAD nations can attain sustainable socio-economic development by boosting the capability and competitiveness of entrepreneurially motivated private sector stretching all the way up to the survivalist business (entrepreneurial) activities in both urban and rural areas.

Searching for an Alternative Gem

One important strategic action that should be taken is searching for an alternative gem for the establishment of an effective strategic and foundational roadmap focused on promoting innovation and entrepreneurial activities in the midst of the population at large in a broader, deeper and dynamic fashion. Popularizing entrepreneurial innovation at the grassroots level is not simply about how one creates a business or the workings of the economy. It is more about how we organize today’s society (Brenkert, 2002). As the developmental strategy guru, C.K., Parhalad (2002) said it rightly, “popularizing entrepreneurial innovation at all levels has a pivotal role to play in creating fortune at the bottom of the pyramid and creating a more sustained and better world.” Genuine entrepreneurial initiatives and innovative activities are helpful solutions to enhance the eradication of poverty and promote justified income inequality in national economies. Above all, ensuring active grassroots participation in the developmental process is essential for sustainable economic progress. If the desired opportunity is given, the populace has the wisdom, proven ability and prudence to actively engage in solving the acute and chronic socio-economic developmental problems surfaced in the region.

What IGAD Nations Should Do

IGAD nations are keen to popularize grassroots entrepreneurship education as one of their major national development agendas. However, recognition alone is not sufficient if it is not complemented with effective implementation course of actions and modalities. Therefore, concerted efforts should be exerted by all stakeholders including concerned governmental organs, private sectors agencies, academic institutions, business cooperatives, established entrepreneurs and many other segments of society. These comprehensive efforts are needed in order to build and mobilize the desired resources and capabilities for the broader promotion of grassroots entrepreneurship and innovation in both rural and urban areas. The desired resources and capabilities can be categorized as: Physical and Infrastructural; Technological and Operational; Economic (Financial, etc.); Human, managerial and governance at all levels; Information and Knowledge (KNOW HOW, KNOW-WHAT, and KNOW-WHY); and Socio-Cultural and Political.

The pertinent question is: what should be done to acquire the desired resources and capabilities to promote and popularize grassroots entrepreneurship and innovation among the ordinary population in a broader sense? This leads to the necessity of proper and savvy utilization and management of the available scarce resources and capabilities. It is true, IGAD members are developing nations. Their resources and capabilities are limited. They need to work hard and take further savvy courses actions to build-up their desired resources and capabilities are indispensable. This means that they need to deal with the HOWs and WHYs of enhancing their desired resources and capabilities as the main preconditions for achieving the intended objectives.

It is true that society’s developmental dynamics should be considered, measured and evaluated in several dimensions in order to have a full and holistic framework. These are: economic, technological, political, human, environmental, socio-cultural, historical, scientific and geographical dimensions. In the same way, it is also useful to develop grassroots entrepreneurship eco-system that incorporated at least the contribution and involvement of the following core stakeholders: Government sectors’ support; Civil society organizations and community based infrastructures; Educational establishments support; Business Sector Support; Internationally geared  technical, human capacity and economic endowments support; Diaspora’s Support; and other stakeholder capacities. Developing comprehensive and participative eco-system framework can help to gain a wider outreached support and facilitation. It is useful for IGAD nations to build customized Entrepreneurship Eco-System that reflects their unique objective situation.

Conclusion

Academic institutions and educators in the region have a mandate to create an entrepreneurial climate in the experiential learning environment all the way up to the most disadvantaged and poverty stricken segment of the population. Finally let me quote the words of wisdom, from the able and renaissance leader, President Paul Kagame, 

“I submit to you that Africa’s position and relevance in the world in an increasingly competitive global environment will be ensured by a leadership and people that refuse to be second best and that stand up for their shared interests” 

If policies and implementation strategies are formulated in congruence with the existing and forthcoming social and economic situations at all specified levels, the expected result will be undoubtedly fruitful. I believe that assessing the possibilities and problems of promoting grassroots based economic development approaches in the region can be a viable precondition for achieving sustainable economic development that each member nation aspires to do so.