Ghana has a significant political history, as it was the first Sub-Saharan African country to achieve independence from colonial rule in 1957. Despite its role as a forerunner for economic freedom, the country continues to face significant challenges at the core of its development, including but not limited to frequent global economic shocks, fluctuating inflation and exchange rates, poor infrastructure development, and persistent external debt defaults.[1] These systemic issues, combined with the aggravating youth unemployment averaging 32%[2], have prompted a shift in Ghanaian talent toward the service sectors and entrepreneurial ventures. This raises a crucial question: What motivates young people to start businesses today- is it the pursuit of personal sustenance, or a desire to advance the broader Ghanaian community?
Formal Unemployment as a Catalyst for Entrepreneurship
In my efforts to support young professionals in achieving stable financial outcomes, I have consistently identified a common theme: after tirelessly submitting their CVs for three years, many graduates venture into agribusiness, e-commerce, digital marketing, light manufacturing (such as textile and food processing), and waste management. The Global Entrepreneurship Monitor (2024) report corroborates this observation, positing that “the most frequently agreed motivation by early-stage entrepreneurs in low-income countries is the material ones, which include earning a living because jobs are scarce”.[3]
Beyond the desire to be self-sufficient, young people often feel pressured to generate income quickly to support their parents financially, pay their siblings’ school fees, and assist unemployed extended relatives. This dynamic is not unique to Ghana but is evident across many African contexts, where young men are encouraged to achieve financial stability early to meet societal demands.
Is necessity-based entrepreneurship inherently wrong?
Not at all.
Ghana’s culture of necessity entrepreneurship is deeply rooted in structural poverty, where a poor mother’s only means of feeding her five children is the sale of her last jewelry. This model fosters resilience and innovation among young people, helping them develop strong business acumen. It also plays a critical role in alleviating poverty, contributing to the realisation of SDG 2 and enabling Africans to overcome infrastructural limitations and survive beyond the bare minimum.
However, this approach to entrepreneurship creates a significant gap in economic development, as it tends to focus on short-term societal impact, fails to address the pertinent needs of society, and is associated with high business failure rates.[4]
Hope through Sustainable Entrepreneurship
To effectively address this gap, we need to focus on the true motive for business: creating ventures that solve problems effectively without exacerbating existing societal challenges.
Drawing inspiration from President Halla Tómasdóttir, President of Iceland, who shared her heartfelt perspectives on purpose-led leadership at a Wheeler Institute event, we must shift our perspective. Businesses should no longer be seen as a tool for maximising shareholder value; instead, we should measure business success by the systemic improvement it offers to our nations.
This is a clarion call to African governments to rethink the structures of our entrepreneurship models. These authorities should establish entrepreneurial incubators which are focused on developing sustainable solutions which would influence the core of our operational systems.
Furthermore, CEOs of early start-ups should incorporate sustainability reporting in their business models from the “baby stage.” This would ensure that the principles of giving back to society are engrained in the core strategic decisions of the business, resulting in Africa’s exponential growth.
Indeed, the beauty of entrepreneurship lies in the lives that are transformed, not just in the profit generated.
References
[1] https://www.congress.gov/crs-product/R47329
[3] https://www.gemconsortium.org/file/open?fileId=51621
[4] https://doi.org/10.1162/itgg.2006.1.1.97
About the writer
Woraba Dansua Abban, MAM2026 is a Research and Outreach Intern at the Wheeler Institute for Business and Development. She holds a BSc Business Administration from Ashesi University and has worked as an Associate Consultant at Deloitte and Touche (Accra), where she assisted clients in resolving their governance and risk management needs across diverse industries. Woraba aspires to bring lasting change to Africa’s developmental challenges through her passion for the international development industry.
Student voice
The Wheeler Institute for Business and Development is seeking to understand, illuminate and offer solutions to the challenges faced by the developing world, with an aim to identify the role of business in addressing these challenges and a focus on the implications and actions for those in developing countries. In support of our students, we approach this blog section as a reflective platform and a space where individuals can generate debate as long-term agents of positive change. This article is solely authored by a student and reflects their individual research, opinion and point of view and is not based on research led or supported by the Wheeler Institute.