Financial stability and entrepreneurship development in sub-Sahara Africa: Implications for sustainable development goals

This study examined the relationship between financial stability and entrepreneurship development in Sub-Sahara Africa, thereby scaling up the achievement of SDGs 1, 5, 8, 9, 10 and 12. The study made use of pooled data from 24 sub-Sahara Africa countries covering the period from 2004 to 2017. The method of analysis utilised is the pooled ordinary least squares (OLS) and random effects techniques. The findings revealed that financial stability (which measures the financial strength of the banks, real economic stability and the level of financial market development in the region) have a significant positive effect on entrepreneurship development at one per cent (1 per cent) significance level in the study period. The findings of the study suggest that stability in the financial environment facilitates the provision of credit facilities for entrepreneurship and promotion of new business start-up in the study area. The result also shows that East African countries make a significant positive contribution to entrepreneurship development in terms of responsiveness to changes in financial stability, governance, strong institutions, economic development and human capital development than other regions in the continent. The policy implication of the study highlights the need to build strong institutions in Sub-Sahara Africa and the need for inclusive growth which has a direct effect on the citizens in terms of employment generation, poverty alleviation, good health and improve the standard of living. Human capital development should be the primary focus for governments in the region since national development depends on the level of the human capital.