youth livelihoods and entrepreneurship in the mobile telephony sector in the greater accra ...

314 Pages·2015·3.57 MB·English

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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
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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)
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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.
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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.
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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 people I interviewed 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.
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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 mother, Rebecca Lendey Ampah, for the tremendous support offered me during the
course of my studies. May God richly bless you all.
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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

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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 of Social Capital .................................................................................... 28
2.5.2 Social Capital Origin .............................................................................................. 30
2.5.3 Social Capital: Pierre Bourdieu .............................................................................. 31
2.5.4 Social Capital Theory: James Coleman .................................................................. 34
2.5.5 Theorising Social Capital – Robert Putnam ........................................................... 37
2.5.6 Synthesising the Debate and Rationalising Coleman’s Thinking .......................... 40
2.5.7 Different Types of Social Capital ........................................................................... 41
2.6 Social Capital and Contemporary Crisis ................................................................... 42
2.7 Social Capital and Entrepreneurial or Livelihood Activities..................................... 44
2.8 Theorising Youth Livelihoods and the Transitions to Adulthood ............................. 50
2.9 Summary and Conclusion .......................................................................................... 59

CHAPTER THREE ....................................................................................................... 62
SOCIO-ECONOMIC DEVELOPMENT AND THE YOUTH SITUATION IN
GHANA ................................................................................................................... 62
3.1 Introduction ............................................................................................................... 62
3.2 Demographic Profile and the Youth .......................................................................... 62
3.3 Socio-Economic and Political Context and the Youth .............................................. 65
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3.3.1 The Early Independence Era to the Early 1980s .................................................... 66
3.3.2 Structural Adjustment Programme and Economic Liberalisation (1983-1992) ..... 69
3.3.3 Constitutional Rule and Democratic Dispensation (1992 – Present) ..................... 75
3.3.4 Education and Skills Training ................................................................................ 75
3.3.5 Recent Youth Specific Policies .............................................................................. 78
3.4 Summary .................................................................................................................... 80

CHAPTER FOUR ......................................................................................................... 81
PHILOSOPHICAL ORIENTATION AND METHODOLOGICAL
APPROACH ........................................................................................................... 81
4.1 Introduction ............................................................................................................... 81
4.2 The Informal Sector and Youth Enterprises in the Mobile Telephony Sector .......... 81
4.3 Methodological Approaches to Studying the Informal Sector .................................. 84
4.3.1 Anecdotal Approaches ............................................................................................ 84
4.3.2 Micro Observations ................................................................................................ 84
4.3.3 Macroeconomic Approaches .................................................................................. 85
4.4 Philosophical Orientation of Study............................................................................ 86
4.5 Quantitative Research Design ................................................................................... 87
4.5.1 Mapping Mobile Telephony Businesses in the GAMA ......................................... 87
4.5.2 Selection of Study Localities .................................................................................. 88
4.5.3 Sample Frame ......................................................................................................... 91
4.5.4 Sampling ................................................................................................................. 94
4.5.5 The Survey Instrument ........................................................................................... 95
4.6 Qualitative Techniques .............................................................................................. 95
4.6.1 Life Trajectory Interviews ...................................................................................... 96
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4.6.2 Biographical Life Course Interviews ...................................................................... 97
4.6.3 In-depth Interviews ................................................................................................. 98
4.7 Data Analytical Techniques....................................................................................... 98
4.7.1 Quantitative Analytical Measures .......................................................................... 99
4.7.2 Qualitative Analysis ............................................................................................. 103
4.7.2.1 ‘Critical moments’ and ‘fateful moments’ as Analytical Tools ........................ 103
4.7.2.2 Analysing Qualitative Interviews ...................................................................... 105
4.8 A Profile of Sampled Population ............................................................................. 105
4.8.1 Age Distribution of Respondents ......................................................................... 105
4.8.2 Gender Distribution .............................................................................................. 108
4.8.3 Educational Qualifications and Skills Training .................................................... 108
4.8.4 Ethnic Composition .............................................................................................. 109
4.8.5 Marital Status ........................................................................................................ 111
4.8.6 Nationality ............................................................................................................ 111
4.9 Type of Youth Businesses in the Mobile Telephony Sector ................................... 112
4.9.1 Mobile Phone Sales .............................................................................................. 112
4.9.2 Mobile Phone Top-Up Units or Airtime............................................................... 114
4.9.3 Mobile Phone Repairs .......................................................................................... 115
4.9.4 Mobile Phone Accessories.................................................................................... 116
4.10 Summary ................................................................................................................ 117

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