ABSTRACT
The severity of the COVID-19 pandemic is underscored by its systemic distortion of socioeconomic and political agendas around the world. It has disproportionately affected fragile states, and has exposed economies with inefficient safety nets. In this article, we contend that while the uncertainty occasioned by the COVID-19 pandemic has been devastating for many African firms, the situation has also given rise to new entrepreneurial opportunities. We draw on three cases from Africa (one multinational corporation, one start-up, and one informal firm) to outline how the COVID-19 pandemic can also be regarded as a source of entrepreneurship in uncertain times. We conclude by discussing implications for African management practice and research.
Disclosure Statement
No potential conflict of interest was reported by the author(s).
Notes
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2 https://www.afdb.org/en/news-and-events/post-covid-19-rebuilding-africa-and-strengthening-its-resilience-against-future-economic-shocks37467 (accessed 15 September 2020).
3 https://www.afdb.org/en/news-and-events/post-covid-19-rebuilding-africa-and-strengthening-its-resilience-against-future-economic-shocks37467 (accessed 15 September 2020).
4 https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker#AFR (accessed 2 September 2020).
5 https://www.uneca.org/stories/african-businesses-shifting-towards-new-technologies-response-covid-19-pandemic (accessed 1 November 2020).
6 https://www.africanews.com/2020/09/29/how-ethiopian-airlines-rode-out-the-coronavirus-pandemic/ (accessed 6 November 2020).
7 https://www.theigc.org/event/policies-to-address-covid-19s-impact-on-africas-informal-sector/ (accessed 6 November 2020).
8 https://www.businessdailyafrica.com/bd/corporate/companies/java-house-slashes-wages-by-40pc-as-covid-19-bites-2287836 (accessed 6 November 2020).
9 https://www.aljazeera.com/features/2020/8/4/kenya-as-wildebeest-migrate-covid-19-keeps-tourists-at-bay (accessed 6 November 2020).
10 Milliken (Citation1987) categorizes three types of uncertainty according to (1) uncertainty relating to the state of the environment (state uncertainty); (2) uncertainty relating to how changes in the environment will affect our organization (effect uncertainty); and (3) uncertainty relating to how we can respond to the changes in the environment (response uncertainty).
11 https://www.bbc.com/news/world-africa-53637506 (accessed 6 November 2020).
12 For more examples, see https://ai4dev.africa.undp.org/young-african-innovators/ (accessed 30 October 2020).
13 https://www.theguardian.com/global-development/2020/jul/17/ugandas-quentin-tarantino-rolls-his-camera-for-covid-19-comedy-fundraiser?CMP (accessed 17 July 2020).
14 ://www.theguardian.com/global-development/2020/jul/17/ugandas-quentin-tarantino-rolls-his-camera-for-covid-19-comedy-fundraiser?CMP (accessed 17 July 2020).
15 https://www.theguardian.com/global-development/2020/jul/17/ugandas-quentin-tarantino-rolls-his-camera-for-covid-19-comedy-fundraiser?CMP (accessed 17 July 2020).
16 https://www.justgiving.com/campaign/bulambuli (accessed 29 October 2020).
17 https://edition.cnn.com/2020/05/09/africa/ghana-coronavirus-handwash/index.html (accessed 5 September 2020).
18 CNN 2020 – https://edition.cnn.com/2020/05/09/africa/ghana-coronavirus-handwash/index.html (accessed 5 September 2020).
19 Ghana Standards Authority, 2020 – https://www.gsa.gov.gh/2020/04/gsa-certifies-solar-automated-hand-washing-machine/ (accessed 15 July 2020).
20 These figures are based on conversations with the founder.
21 PYMNTS, 2020 – https://www.pymnts.com/news/ecommerce/2020/how-jumia-africa-is-navigating-overnight-digitization-expansion/ (accessed 16 July 2020).
22 PYMNTS, 2020 – https://www.pymnts.com/news/ecommerce/2020/how-jumia-africa-is-navigating-overnight-digitization-expansion/ (accessed 16 July 2020).
Additional information
Notes on contributors
Rebecca Namatovu
Rebecca Namatovu, is a post-doctoral researcher in the Department of Strategy and Innovation at Copenhagen Business School. Her research interests lie at the intersection of entrepreneurship and development studies. She studies how resource constraints and institutional inefficiencies influence firm behavior. Her work has been published in outlets such as Journal of Business Venturing and Academy of Management Learning and Education.
Marcus M. Larsen
Marcus M. Larsen, is Professor (WSR) at Copenhagen Business School and Adjunct Associate Professor at BI Norwegian Business School. His research interests include international business, strategy, and organizational design. His work has appeared in outlets such as Strategic Management Journal, Journal of International Business Studies, and Organization Science. He currently leads the Carlsberg Foundation funded research project, “The Firm in the Informal Economy”.