The Role of Institutions and ICTEntrepreneurship in Developing Countries : - The case of Cameroon

The increasing body of literature in the field of development theory holds that information and communications technologies (ICTs) are essential for improving the living conditions in developing countries. Since this view is shared by many governments and international organizations it is also a foundation for policy making. In this thesis I examine the role of ICTbased entrepreneurship in Cameroon and how such entrepreneurs can improve the economic conditions in the developing world. Using a qualitative approach I do a case study by mapping small and medium sized enterprises (SMEs) in Cameroon's ICT industry and identify the key drivers and barriers for the entrepreneurial process of ICT development. The data is mainly collected from field work in Cameroon during two months in 2010. The method is influenced by ethnography and apart from observations, includes semi structured interviews with 14 contributors and a survey of 20 Internet cafés. The empirical material analyzed in a development context based on a research model using theories of ICT development, institutional economics and entrepreneurship. Weak institutions are often theorized to be the main reasons why sub-Saharan Africa is behind in the economic progress and the study gives many examples of how ICT-based entrepreneurship can overcome weak institutions in Cameroon. Conversely, it also demonstrates that ICT-based entrepreneurship can create lock-ins and reinforce bad structures. In the context of this study the entrepreneurial process was found to be characterized by a strong commitment to the community, social groups and family. The most common perceived barriers among the entrepreneurs are governmental centralization, bureaucracy and corruption. The difficulty in getting funding is also a common obstacle. The study further shows that ICT entrepreneurs have an important role for increasing the level of ICT awareness. Internet cafés have many important functions in the society and serve many other purposes than just providing Internet. Private education centers are common and very important since they can make up for the malfunctions of the national education system. However, many education centers might have a wrong focus and could be made more efficient