Peer Networks and Entrepreneurship: A Pan-African RCT

Research Note
Published on 4 February 2020


Do business interaction and exchange of ideas among peers foster entrepreneurship? Connecting almost 5,000 entrepreneurs from 49 African countries we find that peer interaction indeed has a positive effect on the submission of business proposals and their entrepreneurial quality, but only under suitable conditions (e.g. if interaction is carried out in groups of the same nationality). This suggests a subtle interplay of interaction and diversity, thus highlighting that peer networking mechanisms need to be carefully designed to deliver their large potential.