Youth Livelihoods and Entrepreneurship in the Mobile Telephony Sector in the Greater Accra Metropolitan Area This Thesis Is Subm
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University of Ghana http://ugspace.ug.edu.gh YOUTH LIVELIHOODS AND ENTREPRENEURSHIP IN THE MOBILE TELEPHONY SECTOR IN THE GREATER ACCRA METROPOLITAN AREA THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON BY ROBERT LAWRENCE AFUTU-KOTEY 10013777 IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF DOCTOR OF PHILOSOPHY DEVELOPMENT STUDIES DEGREE DECEMBER, 2013 University of Ghana http://ugspace.ug.edu.gh DECLARATION I hereby certify this thesis as original and my own and that neither part nor the whole has ever been presented in this University or any other institution for an award of any academic degree. All references of others made to the work have duly been acknowledged. .............................................................. ................................. ROBERT LAWRENCE AFUTU-KOTEY DATE (Candidate) We, the undersigned supervisors, certify that this is an original work we supervised the candidate to produce. We are also convinced that it (the thesis) meets all required standards set by the University of Ghana for an award of a Doctor of Philosophy Degree. .............................................. ................................. PROF. GEORGE OWUSU DATE (Principal Supervisor) ................................................ ................................. PROF. P. W. K. YANKSON DATE (Supervisor) ................................................... ................................. PROF. KATHERINE GOUGH DATE (Supervisor) i University of Ghana http://ugspace.ug.edu.gh ABSTRACT Mobile phones have been widely reported to be transforming Africa and have even been referred to as creating a ‘revolution’. Numerous studies have revealed how mobile phones are ‘flattening’ the world and facilitating economic development through improved connections between places and people. In Ghana, liberalisation of the mobile telephony sector has contributed to a dramatic rise in the number of young people who are engaged in various informal support businesses in the sector, including sale of mobile phones, accessories, airtime, and repair of mobile phones. Despite the fascination with the potential of the mobile telephony sector and impact of mobile phone usage, few studies have examined the livelihoods of those working in the business. Using a multiple research methodological approach involving a combination of quantitative and qualitative analytical techniques, this study specifically investigates the motivation for business establishment, performance and business implications in the life course of the youth working in the sector. The findings of this research counter the neoliberal interpretations and assumptions of entrepreneurship and livelihoods that are currently being promoted on two fronts. First, despite the majority of the youth-run mobile telephony businesses being ‘informal’, they cannot be dismissed as ‘necessity’ enterprises unworthy of support. On the contrary, many young people have growth aspirations for their businesses and some have succeeded in establishing successful businesses that enable them to become financially independent and make significant gains in social mobility. Second, although some young people are able to develop flourishing businesses, these are mainly educated males. On the whole, entrepreneurship within the mobile telephony sector is shown to be reinforcing existing social and economic inequalities rather than enabling young people to escape. The research therefore recommends broader policy choices at the micro and macro levels aimed at improving the livelihoods of the youth. ii University of Ghana http://ugspace.ug.edu.gh DEDICATION This thesis is dedicated to my father, Isaac Nii Afutu Kotey for being there for me throughout my educational life, and to my lovely wife, Benedicta Lalue Sackey for the inspiration during the study. iii University of Ghana http://ugspace.ug.edu.gh ACKNOWLEDGEMENT I am very grateful to my three supervisors: Prof. P. W. K. Yankson, Prof. Katherine Gough and Prof. George Owusu for their guidance and expertise that have brought this dissertation this far. In spite of your extremely busy schedules, you always found time to offer guidance and encouragement. I am also grateful to Prof. Søren Jeppesen, Prof. Thilde Langevang and Prof. Torben Birch-Thomsen, all of the University of Copenhagen for their insight into the initial conceptualisation and guidance throughout the dissertation writing period. I am equally grateful to the Coordinator of PhD Programme, Rev. Dr. Adobea Yaa Owusu and the entire staff of the Institute of Statistical, Social and Economic Research (ISSER), University of Ghana, for the valuable comments during the weekly seminar presentations. To all the resilient young peoplee I int rviewed during the fieldwork, I say thank you very much for sharing your time and interest in my work. My thanks also go to Mr. Emmanuel Edudzie of Youth Empowerment Synergy, Ghana for availing himself to be interviewed interview on two separate occasions and also for assisting with relevant literature. Above all, and from the bottom of my heart, I am greatly indebted to Prof. George Owusu for giving me the opportunity to pursue this dissertation and more importantly, for the good working relations before, during and even beyond this study. May the Almighty God grant you good health and success in all your endeavours. I am highly indebted to Mr. Maxwell Yeboah and Diana Budmus, for accompanying me in various stages of the fieldwork. I also wish to thank the entire YEMP team and all the YEMP PhD Candidates at Makarere University, University of Lusaka and PhD Colleagues at ISSER whose useful suggestions and contributions partly contributed in getting me this far. iv University of Ghana http://ugspace.ug.edu.gh I would like to thank DANIDA for sponsoring my stay at the Department of Geography and Geology, University of Copenhagen, and also for funding my fieldwork in Ghana. My final appreciation goes to my wife, Benedicta Lalue Sackey, my father, Mr. I. N. A. Kotey and my mothe r, Rebecca Lendey Ampah, for the tremendous support offered me during the course o f my studies. May God richly bless you all. v University of Ghana http://ugspace.ug.edu.gh TABLE OF CONTENTS Content Page DECLARATION ................................................................................................................i ABSTRACT ..................................................................................................................... ii DEDICATION ................................................................................................................ iii ACKNOWLEDGEMENT ................................................................................................iv TABLE OF CONTENTS .................................................................................................vi LIST OF TABLES ........................................................................................................ xiii LIST OF FIGURES ........................................................................................................xiv LIST OF ABBREVIATIONS ......................................................................................... xv CHAPTER ONE .............................................................................................................. 1 INTRODUCTION ........................................................................................................... 1 1.1 Background of the study .............................................................................................. 1 1.2 Research Problem ........................................................................................................ 7 1.3 Research Objectives .................................................................................................. 10 1.4 Justification for the Study .......................................................................................... 11 1.5 Conceptual Definitions .............................................................................................. 12 1.5.1 ‘Youth’ as a Concept .............................................................................................. 12 1.5.2 ‘Entrepreneurship’ and the ‘Entrepreneur' ............................................................. 14 1.5.3 ‘Livelihoods’ as a Concept ..................................................................................... 17 1.5.4 ‘Mobile Telephony’ ................................................................................................ 17 1.6 Thesis Outline ............................................................................................................ 18 vi University of Ghana http://ugspace.ug.edu.gh CHAPTER TWO ........................................................................................................... 19 LIVELIHOODS, SOCIAL CAPITAL AND YOUTH TRANSITION TO ADULTHOOD: THEORIES AND PERSPECTIVES ........................................ 19 2.1 Introduction ............................................................................................................... 19 2.2 Enterprise Activities and the Livelihood Framework ............................................... 19 2.3 Motivation for Establishing Livelihood Activities .................................................... 22 2.4 Entrepreneurship or Livelihood Activities and Social Processes .............................. 27 2.5 Social Capital: Definition, Origin, and Theoretical Orientation ............................... 28 2.5.1 Definition