Cooperative Entrepreneurship and Rural Poverty Alleviation in Africa

Abstract

Cooperative entrepreneurship has gained momentum in the past two decades, especially in the agricultural communities of Africa. Surprisingly, not much is known about the connection between cooperative entrepreneurship and rural poverty alleviation in Africa. With this in mind, this chapter interrogates the role of cooperative entrepreneurship in eliminating poverty in African countries. To achieve this main objective of the study, a systematic literature review methodology was applied. In terms of data analysis, thematic analysis was used to analyze the data from secondary sources. The study established that cooperative entrepreneurship is of paramount importance in alleviating poverty in Africa through the provision of affordable goods and services, employment creation, supporting democracy principles, ensuring equality, wealth creation, effective use of local resources, opening new markets, and creation of solidarity economy, as well as reducing economic and social exploitation. The study concludes that cooperative entrepreneurship is vital for alleviating rural poverty in African countries. The study recommends that the government should support the cooperative programs in rural areas and the creation of new markets, the microfinance institutions should provide financial resources, and the management of the cooperatives should enhance their management practices by attending capacity-building programs offered by non-governmental organizations operating in rural areas.