Entrepreneurship development in Botswana lessons for other developing countries

Abstract

The paper analyzes the narrative in the annual reports of the Citizen Entrepreneurial Development Agency (CEDA), the main institution charged with development of entrepreneurial capacity in Botswana to illuminate its performance and draw possible lessons for other developing countries in the region and beyond. Further insights are derived from face-to-face interviews with a senior CEDA official. The study finds that CEDA faces many challenges including inadequate resources and the failure to repay loans by promoters which leads to many foreclosures. As a consequence, CEDA is unable to achieve some of its stated objectives and to sustain itself from loan revenues without government support. The findings further indicate that while the entrepreneurship development model in Botswana is robust, it is more geared towards enhancing the production side of business in the process neglecting the marketing side. These findings suggest that there is need to improve the marketing skills of promoters so that they can deal effectively with demand related challenges. Similarly, there is need to ensure that institutions charged with entrepreneurship development are well resourced. The findings also suggest that although financial assistance is important in promoting entrepreneurship it is not a sufficient condition. Beyond this, a more comprehensive environment must be facilitated.