There have been a number of attempts to conceptualize the phenomenon of entrepreneurial processes and activities but no consensus has been reached about what entrepreneurship is (Buame, 2012). In fact, Joseph Schumpeter’s definition of entrepreneurship seems to have been universally accepted since it has somehow stood the test of time. Joseph Schumpeter (1934) defined entrepreneurship as a new process where a group of people or an individual creates something new, and that something new could be: a new product, a new method of production, a new source of material or a new market hitherto unexploited. For practical purposes, Buame (2012) define entrepreneurship as, "An innovative process where a prospective individual identifies and seizes opportunity (be it an idea, or business); organises existing resources to convert those opportunities into workable/marketable products or services; thus by adding value through time, efforts, money, or skills for the benefit of society; assumes the risks of the competitive marketplace to implement these ideas; and realises the rewards from these efforts."
Ghana has been plunged with developmental difficulties. Unemployment (especially graduate unemployment) is on the rise. The value of our currency is depreciating at an increasing rate. “Dumsor dumsor” has become the order of the day. The antidote to these and other similar killer diseases that Ghana has been afflicted with is entrepreneurship. “Entrepreneurship is the driving force that transforms and renews economies in the wake of the collapse of communism. It is an engine of growth, with entrepreneurs assuming the driver’s seat” (Buame, 2012). The transformation of Malaysian economy by entrepreneurship attests to this assertion.
It should be pointed out that the fact that Malaysia and Ghana attained independence in the same year (1957), have similar climatic conditions and even similar natural resources makes the former the best country for this comparative analysis. Malaysia and Ghana are both producers and exporters of palm oil in the world. Their industrial path diverged in the early stage of development, and eventually went in opposite directions. Malaysian oil palm industry has been dynamic and successful, whilst that of Ghana has been inactive and limited notwithstanding the fact that oil palm tree is indigenous to West Africa. The first oil palm plantation and mill was established in Ghana by the British Alexander Cecil Goff in the early 1900s. The British in Malaysia went to Ghana to learn more about the culture of oil palm plantation and production and cultivation techniques. Consequently, Malaysia began dominating the world market for palm oil in the early 1970s with 573,000 metric tons exported per year and has maintained their dominion thereafter. One may argue that since the British were managing the oil palm plantations, the domination of palm oil market can be attributed to the efforts of the British and not the Malaysians per say but according to the U.N. Food and Agriculture Organization’s statistics in 2013, Malaysia was the number two exporter of palm oil in the world after Indonesia. This proves that the Malaysians’ entrepreneurial activities has played a major role in their domination of the oil palm market.
Furthermore, Malaysia’s economy used to be dominated by agricultural products. As a result, during the 1970s, its neighbours perceived it as a resource of rubber and palm oil. Of course, it should also be pointed out that the country became popular for its capability to provide supplies of tin. As the decades passed, however, the nation’s gross domestic product’s “composition” slowly shifted away from the traditional to modern-day offerings such as electronics and services as opposed to that of Ghana which is still over depending on the primary sector. Without a doubt, the country has undergone an economic transformation and this can be largely attributed to their entrepreneurial activities. Malaysia’s palm oil products for example, now merely take up eight percent of the nation’s total export whilst electronic devices account for roughly 30 percent of the country’s overseas sales. In this regard, it would also be best to hammer on an interesting fact: the services sector continues to generate considerable profits, proven by the fact that almost half of the country’s GDP comes from it. Malaysia’s relatively high entrepreneurialism is reflected in its entrepreneurship and innovation rank by the Legatum Prosperity Index: 28th out of 104 economies. Malaysia’s performance is boosted by a flourishing high-tech industry. High-tech exports constitute over half of total exports. Moreover, high levels of royalty receipts indicate that Malaysia is able to capitalize on its innovations, according to the Legatum study. She is considered as one of a group of fast developing countries known as 'Newly Industrialised Countries' or NIC's. NICs are countries whose economies have not yet attained developed country status but have, in a macroeconomic sense, outpaced their developing counterparts. Another characterization of NICs is that of nations undergoing rapid economic growth (usually export-oriented). Ghana, on the other hand, is still a developing country.
Tony Fernandes is a famous Malaysian entrepreneur whose success story became the headline in some newspaper and websites. Tony Fernandes is the backbone of AirAsia’s journey to world domination. With RM1 (RM- Malaysian currency), he purchased a defunct carrier, along with over RM40 million in debts, and created Asia’s most successful budget airline company. From an ailing and financially-stricken company, AirAsia went through a remarkable turning point and made its first profit merely after 7 months of operation. From thereon, it began to grow in leaps and bounds. Although Ghana also has some entrepreneurs such as Albert Ocran, the impact of their entrepreneurial activities has not been really felt since these agents of change are just a handful.
In a nutshell, no nation can develop without an army of entrepreneurs and as such it is high time that we as a nation harnessed the magic potion of entrepreneurship.
References
Buame, Samuel. Entrepreneurship: Entrepreneurial Education, Venture Creation and SME
Management in Ghana. Weija-Accra: University of Ghana Business School, 2012.
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GhanaWeb. Ghana Draws from the Asian Experience. Web. 17 June 2014.
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Matthew Barsing. LinkedIn. Economic Transformation: Malaysia’s Evolution through the
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Savewrko. The Most Famous Malaysian Entrepreneur Success Stories.
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