3.22 Local agribusiness ecosystems in Senegal

FIGURE 3.22 Local agribusiness ecosystems in Senegal

Monosector Multisector Monoquality and monosector Monoquality and multisector Multiquality and monosector Multiquality and multisector

Source: Cruz, Torres, and Tran 2020. Note: The analysis is based on indicators at the commune level generated through microdata from the Recensement Général des Entreprises (RGE), ANSD.

contagion of positive shocks. The spatial correlation in economic activity could amplify the effect of interventions targeted to strategic entrepreneurship ecosystems. for example, boosting entrepreneurship only in high-potential communes in agribusiness in Dakar, casamance, and the Niayes-North regions (modeled as an exogenous increase in plants and sales in figure 3.23) affects employment in these communes (direct effect), and could also affect Thiès, the rest of Ziguinchor, Sédhiou, and Kolda, and extensive regions of louga and Matam through spillover effects. This analysis exploits a spatial regression of log employment on log plants and log sales in agribusiness across communes in Senegal. The weighting matrix in the spatial regression assigns a value of 1 to neighboring communes that share a border and 0 otherwise. In the exercise, plants and sales in high-potential and maturing communes are increased by 10 percent (increase of 4.8 percent as a fraction of total number of plants in agribusiness) and the resulting increase in employment is 11 percent (as a fraction of total employment in agribusiness).

Main barriers to boosting entrepreneurship

Agribusinesses in multiquality ecosystems in Senegal face barriers that significantly differ from the constraints of the typical firm. The top constraint for businesses in Senegal, as reported in the establishment census, is the difficulty of distributing and selling final goods. About 30 percent of firms report this barrier, which is especially stringent in multiquality ecosystems