The central banking system in West Africa is not designed to stimulate entrepreneurship thus limiting the region’s potential for economic growth. Consequently, entrepreneurs in the “informal market”, accounting for fifty-percent of employment in Senegal’s urban areas, face barriers to access credit and capital. This study will analyze the impacts of microfinance institutions and mobile banking on the rise of entrepreneurship in West Africa. Case studies on microfinance institutions in West Africa will be used to measure their impact on entrepreneurship. Additionally, an empirical study will analyze the correlation between access to credit and capital and the use of mobile banking systems. Based on the research done thus far the major findings should show that: a) The central banking system in Senegal creates a system of dependency by creating barriers for entrepreneurs to access capital and credit . b) The communal structure of microfinance organizations, such as credit revolving groups, are compatible with the social norms present in Senegal. c) Mobile banking institutions are compatible with the infrastructure that is present in Senegal which increases access to capital and credit. These findings are indicative that using economic systems adapted to the social norms and infrastructure provide greater economic growth in West Africa.
