FDI, the Opportunity-to-Necessity Entrepreneurship Ratio, and African Development

While both foreign direct investment (FDI) and entrepreneurship have been regarded as important to African development, guidance on the balance between the two as well as the type of entrepreneurship needed (necessity vs. opportunity) at different stages of development remains relatively unclear. This article develops propositions for how policymakers in Africa should invest in (1) a balance of FDI and entrepreneurship and (2) which type of entrepreneurship to support at different stages of development on the African continent. Practical implications derived from these propositions are discussed.