AFRICA’S NEW HORIZON OF ENTREPRENEURSHIP

The new source of economic growth in Africa is going to arise from entrepreneurship but not from government-sponsored top-down projects.

The absence of industrialization is going to give new forms of organisational architecture emerging from many uninhibited trial and error, giving rise to composite enterprises. Like Silicon Valley in the USA, we can expect that innovators will create an industrial system distinguished by open labour markets, continuous entrepreneurship and information exchanges both within and between firms (Saxenian 2006).

The innovation is going to arise from the education system which means, the universities and colleges converting their knowledge straight away from the learning organizations to products. Market traders will make effective sales on these products. The key driver of this innovation in Africa is free trade. Protectionism does not allow independence of trade. The government makes importing difficult and expensive. The free market allows free competition and better-quality goods. We should practice freedom of competition and enterprise.

Another important economic principle is the division of labour. Adam Smith in his canonical work published in 1776, explained that economic efficiency, and therefore growth, is enhanced by everyone doing what he or she does best. Adam Smith division of labour principle increases wealth. When people become specialized, they produce high-quality products at rapid speed and find the market.

Division of labour also implies assigning each worker to the job that suits him best. Productive labour, to Smith, fulfils two important requirements. First, it must lead to the production of tangible objects. Second, labour must create a surplus that can be reinvested into production.?Division of labour also means that the right man could be assigned to the right job. This is productive labour. Productive labour will create surplus value which could again be invested in production. There are major benefits of this kind of work, as it saves time and money and increases the level of production.

Adam Smith is concerned with the efficiency of products in the market following the division of labour in the manufacturer. The success of the economy is going to depend largely on the entrepreneur himself or herself who is acting from free will. We learn from Rothbard, that praxeology is a science that rests on the fundamental axiom that an individual entrepreneur acts in conscious actions toward chosen goals.?Action implies that the individual's behaviour is purposive. In short, that it is directed toward goals. Furthermore, the fact of his action implies that he has consciously chosen certain means to reach his goals.?

Decentralized cryptocurrency like Ubricoin is the right kind of money for the support of free markets of individual action by distributed entrepreneurs. Rothbard further explains that entrepreneurs play a pivotal role in the Austrian view of the economy. The entrepreneur is the active agent in the economy who uses the information available from prices and interest rates to coordinate economic plans, exercises judgement of expected future prices and conditions to choose among alternative economic plans and bears the risk of an uncertain future by taking ultimate responsibility for the success or failure of the chosen plan.??

The traditional economy in African countries is based on land, labour and costs that are based on materials, limited natural resources giving rise to material superstitions (Gilder 2013). The blockchain economy in its full glory enables in full force the information system that is a complete overthrow of this material superstition because information multiplies when it is shared. The new economy of Africa will be of multiplication rather than division of resources. Blockchain money itself will power this very prosperous future.

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References

Gilder, G. (2013). Knowledge and power: The information theory of capitalism and how it is revolutionizing our world. Washington DC: Regnery Publishing

Saxenian, A. (2006), The New Argonauts: Regional advantage in a global economy. Cambridge,M A: Harvard University Press.

Murray N. Rothbard. Praxeology: The Methodology of Austrian Economics, Retrieved from the Internet; https://mises.org/library/praxeology-methodology-austrian-economicsPraxeology:%20The%20Methodology%20of%20Austrian%20Economics