Empirical Analysis of the Impact of Institutions on Innovative Entrepreneurship in Sub-Saharan African Countries

The design of an institutional framework capable of promoting innovative entrepreneurship is an important component of any social, political and economic reforms. This framework is crucial in speeding-up the entrepreneurial activities, structural and economic development, particularly in developing countries. Therefore, this study examines the impact of institutions on the growth of innovative entrepreneurship in Sub-Saharan African countries. The study employs a two-stage least square technique to analyze a panel data consisting of 20 Sub-Saharan African countries covering the periods 2001 to 2018. Using the year fixed and robust standard error options which control for time constant at the country’s level and correct for the threat of multi-collinearities respectively, the result provided evidence in support of a strong link between institutions and entrepreneurial activities in the Sub-Saharan African countries. The overall results suggest that policy reforms aimed at achieving entrepreneurship growth, and economic development must implement institutional reforms that allow for innovative entrepreneurial activity to flourish.