A groundbreaking new study published in the Strategic Entrepreneurship Journal delves into the enduring influence of deeply rooted cultural practices on business outcomes within sub-Saharan Africa’s informal economy. The research specifically investigates how the tradition of cousin marriage, a long-standing social custom prevalent in many African ethnic communities, continues to shape the behavior and performance of informal firms despite social transformations and modernization pressures.
The study, conducted by a team of scholars from leading institutions—Saul Estrin of the London School of Economics, Tomasz Mickiewicz from Aston University, and Peng Zhang at the University of Sheffield—analyzed comprehensive survey data collected from over 3,000 informal entrepreneurs operating across eight diverse African countries. This extensive dataset enabled the researchers to correlate historical family structures with key business performance indicators such as employment growth and revenue generation, thereby uncovering patterns deeply embedded in cultural heritage.
Cousin marriage, a practice defined by the researchers as marrying within one’s kinship group, holds significant anthropological and sociological importance in many African societies. It functions not just as a marital custom but as a mechanism for reinforcing in-group identity and strengthening tightly knit social networks. These kinship bonds create a social fabric that governs interpersonal relations, resource flows, and trust within communities, factors that are critical in the informal economy where formal contracts and institutions often play a limited role.
The analysis reveals a distinct divergence in business strategies and outcomes between communities with a historical tradition of cousin marriage and those without it. Informal firms embedded within cousin marriage cultures demonstrated a propensity to allocate additional financial resources towards hiring relatives or members of their in-group network. This preferential hiring strategy resulted in higher employment growth within these firms, showcasing the role of kinship ties in facilitating labor expansion. However, this same approach paradoxically restricted revenue growth when compared to firms operating in communities lacking these traditions.
Underlying these findings is the nuanced understanding that in communities where cousin marriage is traditionally practiced, business priorities often emphasize social cohesion and mutual support rather than aggressive profit maximization. The collective mindset encourages entrepreneurs to invest in sustaining the broader family and kin network, sometimes at the expense of scaling revenue. In contrast, entrepreneurs in communities where cousin marriage norms have weakened tend to adopt more individualistic and profit-driven behaviors focused on maximizing returns, underscoring how cultural legacies shape economic incentives.
Intriguingly, the study underscores that the normative frameworks rooted in cousin marriage continue to influence business behavior even in contexts where the formal practice has declined. As Peng Zhang elucidates, “the underlying social norms—especially the emphasis on supporting one’s in-group—endure and affect resource allocation decisions long after cousin marriage ceases to be widespread.” This persistence speaks to the strength of cultural inertia and the subtle ways family systems imprint economic conduct across generations.
The research also engages with the profound historical disruptions wrought by colonialism, exploring how British colonial administration introduced individualistic legal and bureaucratic systems that challenged and, in many localities, weakened traditional kin-based institutions like cousin marriage. The colonial legacy, however, did not uniformly erode these customs; rather, the impact varied regionally and was mediated by competing cultural influences, including the spread of Islam and Christian missionary efforts, which introduced their own social structures and norms.
The interplay between colonial institutional frameworks and indigenous family systems illuminates the complex mechanisms through which culture and history shape present-day economic behavior in sub-Saharan Africa’s informal sector. Importantly, this sector constitutes a substantial portion of the continent’s economy, where informal firms operate largely outside formal regulatory and legal frameworks, relying heavily on trust, social ties, and family networks for survival and growth.
By situating current business practices within this rich historical and cultural context, the study challenges conventional economic models that often prioritize formal institutional variables while overlooking the persistent influence of social institutions. It highlights the necessity for a multidisciplinary approach in understanding entrepreneurial behavior, one that integrates anthropological insight with economic analysis to capture the full spectrum of factors guiding informal firm dynamics.
Beyond academic implications, the findings hold practical relevance for multinational corporations, investors, and policymakers engaging with sub-Saharan Africa’s dynamic informal economy. Recognizing how entrenched social traditions—like cousin marriage and associated kinship norms—influence hiring practices, resource allocation, and growth objectives can improve collaboration, enhance partnership effectiveness, and guide the design of interventions tailored to local realities.
Moreover, the research invites reflection on the broader theme of cultural persistence amid change. It demonstrates that even when formal social practices transform or diminish, the core values and expectations embedded in family systems can continue to shape economic life in subtle but significant ways. This insight underscores the importance of historical awareness and cultural sensitivity in economic development and entrepreneurship policies.
Ultimately, the study provides a compelling case for considering the intersection of tradition, history, and economics in understanding the multifaceted nature of business performance in sub-Saharan Africa. It opens avenues for future research exploring how other cultural institutions similarly affect informal sector entrepreneurship and offers a sophisticated framework to reassess the impact of colonial and post-colonial transitions on indigenous economic behaviors.
For those interested in the detailed methodology and expansive analysis underpinning these conclusions, the full article is available through the Strategic Entrepreneurship Journal. Its rigorous data-driven approach combines statistical analysis with historical-cultural interpretation, illustrating how a convergence of disciplines can yield novel insights into the drivers of informal economic activity.
This pioneering research thus represents a milestone in the study of entrepreneurship and informal economies. It shines a spotlight on the power of long-standing social institutions to shape economic landscapes, reminding the global community that business phenomena are deeply embedded in social and cultural matrices that transcend mere market logic.
Subject of Research: The influence of cousin marriage traditions and colonial history on informal business performance in sub-Saharan Africa.
Article Title: The cousin marriage tradition, colonial shocks, and the performance of informal firms in sub-Saharan Africa
News Publication Date: 1-Jun-2025
Web References:
Keywords: Business; Society; Sociopolitical systems; Behavioral economics
