mono- and multiquality ecosystems in agribusiness

FIGURE 3.23 Spillover effects from interventions that boost entrepreneurship in mono- and multiquality ecosystems in agribusiness

(300–350] (250–300] (200–250] (150–200] (100–150] (50–100] (0–50] No spillover

Source: Cruz, Torres, and Tran 2020. Note: The exercise exogenously increases establishments and sales in high-potential and maturing communes in Dakar, Casamance, and the Niayes-North region, and then predicts the change in employment not only in the targeted communes but also in neighboring regions. Darker areas in the map identify regions more affected by increasing number of jobs when boosting entrepreneurship in mono- and multiquality ecosystems. The analysis is based on indicators at the commune level generated through microdata from the Recensement Général des Entreprises (RGE), ANSD.

for tourism (32 percent), retail (36 percent), and manufacturing (35 percent). This barrier is followed by lack of suitable premises and high taxes. In agribusiness, lack of specialized technology and an inadequate or costly labor force are relatively more stringent for high-potential ecosystems. In tourism, another sector that generates a significant number of jobs in Senegal, the two factors that deviate from the average, in main perceived barriers, are access to markets and regulations (figure 3.24). Better access to technology, access to finance, and better regulations are also statistically associated with entrepreneurship performance (Audretsch, cruz, and Torres 2020).

Removing barriers in strategic communes could significantly boost entrepreneurship through direct and spillover effects. Estimates from a spatial regression of entrepreneurship outcomes on constraints (and other controls) using aggregates at the commune level suggest that the potential positive spillover or contagion of effects from boosting entrepreneurship in specific communes is significant. Targeting the lack of qualified labor to relax the constraint by 1 percent, for example, could increase average sales per worker across communes in Senegal by 0.541 percent. A majority of this effect (65 percent) comes solely