{"id":655,"date":"2014-11-05T13:00:57","date_gmt":"2014-11-05T12:00:57","guid":{"rendered":"https:\/\/blog.iese.edu\/africa\/?p=655"},"modified":"2016-10-28T13:52:07","modified_gmt":"2016-10-28T12:52:07","slug":"locating-a-business-in-africa-how-much-of-a-hassle","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/africa\/2014\/11\/05\/locating-a-business-in-africa-how-much-of-a-hassle\/","title":{"rendered":"Locating a business in Africa: how much of a hassle?"},"content":{"rendered":"

Different countries offer different travel and living conditions.<\/strong> This has an effect \u2013 identified as the “hassle factor<\/strong>” by professors Andreas Schotter and Paul Beamish from the Ivey Business School<\/a> in Canada \u2013 on companies’ decisions to locate their operations in a particular country. Not all countries are the same in Africa, and the hassle factor varies significantly across them.<\/strong><\/p>\n

\"Local<\/a>
Local transportation: the most important hassle<\/figcaption><\/figure>\n

The hassle factor combines a number of factors that capture travel and living inconveniences in a country<\/strong> (ordered from higher to lower importance): local transportation<\/a>; climate; business facilitation; health & medical<\/a>; risks for women; visa and entry permits; telecommunications; hotel standards; language; food, water, and hygiene; and personal safety<\/a>.<\/p>\n

To give you some reference points<\/strong>, Denmark has the lowest hassle factor<\/strong> (0.805) and ranks 1, and Sudan has the highest hassle factor<\/strong> (4.795) and ranks 131; the US<\/strong> ranks 12 and Spain<\/strong> 33 (scores 1.029 and 1.644 respectively). Most\u00a0of the Sub-Saharan and Southern African countries<\/strong> included in Schotter and Beamish’s study scored from medium-high to high ‘hassle’:<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
COUNTRY<\/strong><\/td>\nRANK*<\/strong><\/td>\nSCORE<\/strong><\/td>\n\u00a0<\/strong><\/td>\nCOUNTRY<\/strong><\/td>\nRANK*<\/strong><\/td>\nSCORE<\/strong><\/td>\n<\/tr>\n
Madagascar<\/td>\n22<\/td>\n1.286<\/td>\n<\/td>\nSenegal<\/td>\n112<\/td>\n3.770<\/td>\n<\/tr>\n
Mauritius<\/td>\n44<\/td>\n2.019<\/td>\n<\/td>\nIvory Coast<\/td>\n115<\/td>\n3.870<\/td>\n<\/tr>\n
South Africa<\/td>\n64<\/td>\n2.563<\/td>\n<\/td>\nEthiopia<\/td>\n118<\/td>\n3.946<\/td>\n<\/tr>\n
Swaziland<\/td>\n86<\/td>\n3.026<\/td>\n<\/td>\nZambia<\/td>\n121<\/td>\n4.019<\/td>\n<\/tr>\n
Uganda<\/td>\n87<\/td>\n3.124<\/td>\n<\/td>\nD. R. Congo<\/td>\n123<\/td>\n4.114<\/td>\n<\/tr>\n
Tanzania<\/td>\n92<\/td>\n3.265<\/td>\n<\/td>\nMali<\/td>\n124<\/td>\n4.122<\/td>\n<\/tr>\n
Ghana<\/td>\n93<\/td>\n3.269<\/td>\n<\/td>\nNigeria<\/td>\n127<\/td>\n4.189<\/td>\n<\/tr>\n
Zimbabwe<\/td>\n103<\/td>\n3.478<\/td>\n<\/td>\nBurkina Faso<\/td>\n128<\/td>\n4.427<\/td>\n<\/tr>\n
Cameroon<\/td>\n105<\/td>\n3.525<\/td>\n<\/td>\nAngola<\/td>\n130<\/td>\n4.687<\/td>\n<\/tr>\n
Kenya<\/td>\n108<\/td>\n3.567<\/td>\n<\/td>\nSudan<\/td>\n131<\/td>\n4.795<\/td>\n<\/tr>\n
Mozambique<\/td>\n110<\/td>\n3.672<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

* Lower ranks indicate lower hassles<\/p>\n

Have you experienced the hassle in any of these countries?<\/strong><\/p>\n

If you want to learn more about the research<\/strong> by Profs. Schotter and Beamish, incidentally, you should look at “the hassle factor<\/a>” web page, and at their article:<\/p>\n

Schotter, A., & Beamish, P. W. (2013). ‘The hassle factor: An explanation for managerial\u00a0location shunning<\/a>,’ Journal of International Business Studies,\u00a044(5), 521-544.<\/p>\n","protected":false},"excerpt":{"rendered":"

Different countries offer different travel and living conditions. This has an effect \u2013 identified as the “hassle factor” by professors Andreas Schotter and Paul Beamish from the Ivey Business School in Canada \u2013 on companies’ decisions to locate their operations in a particular country. Not all countries are the same in Africa, and the hassle […]<\/p>\n","protected":false},"author":1654,"featured_media":663,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[100235,85385,77626],"tags":[18386,782,814,80751,80748,100486,19445,12568],"class_list":["post-655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-differences-within-africa","category-doing-business-in-africa","category-entrepreneurship-in-africa","tag-business-travel","tag-globalization","tag-healthcare","tag-internacionalization","tag-life-style","tag-safety","tag-transportation","tag-travel","megacategoria-mc-africa","megacategoria-mc-strategy"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t