Analysing How Corruption Affects Entrepreneurs in the Democratic Republic of Congo

Authors

  • David M. Kashala Cape Peninsula University of Technology image/svg+xml Author
  • Ravinder Rena Cape Peninsula University of Technology image/svg+xml Author

DOI:

https://doi.org/10.51137/wrp.ijarbm.840

Keywords:

Corruption, Entrepreneurs, Drc Governance Tied, Monetary And Running Forces, Emotional And Calculated Forces, Competitive And Marketplace Forces, Persistence Tactics And Casual Systems.

Abstract

This paper investigated the effects of corruption on business owners in the Democratic Republic of the Congo (DRC). It asserts that a hidden tax imposed by corruption is an omnipresent barrier that impedes the business performance and scaling operations. The study used well-known political science and sociology theories such as Max Weber’s Theory on Neo patrimonialism where the authority is employed through individual association rather than official system. This study used a country case study on how corruption affects entrepreneurs. Qualitative and quantitative research methodologies were used. The chosen sample of participants from Kinshasa’s streets completed structured questionnaires. Face-to-face interviews were conducted with the participants to complement data from the questionnaires. Data was analyzed through descriptive statistics. The findings confirm the effects of corruption on business activities, market distortion and unfair competition, higher operating costs due to informal payments, limited access to contracts and financing, and weak institutional support for entrepreneurs in the DRC. These factors drive numerous businesses toward the unregulated economy, reduce employment opportunities, and diminish the impact of small businesses on economic development in the DRC. This highlights the urgent necessity for more effective anti-corruption measures to promote a stable business climate.

References

Adomako, S., & Nguyen, N. P. (2024). Responsible entrepreneurship, social innovation, and entrepreneurial performance: does commitment to SDGs matter?. Business Strategy and the Environment, 33(5), 4887-4900.

Agapitova, N, Amah, M.C.A, & Tinsley, E. (2020). Social entrepreneurship for inclusive growth in the Democratic Republic of Congo. World Bank Group.

Alexandre, Ali Bitenga (2018). “Perception of Corruption by Traffic Police and Taxi Drivers in Bukavu DR Congo: The Limits of Moral Analysis.” Journal of Contemporary African Studies 36, no. 4 (October 2): 563–74. https://doi.org/10.1080/02589001.2019.1583323.

Alfaro, E. (2022). Understanding the Corruption Perceptions Index. In V. Charles & A. Emrouznejad (Eds.), Modern Indices for International Economic Diplomacy (pp. 233–270). Springer International Publishing. https://doi.org/10.1007/978-3-030-84535-3_9.

Amadi, L., & Ekekwe, E. (2014). Corruption and development administration in Africa: institutional Approach. Africa Journal of Political Science and International Relations, 8(6),163-174.

Amegavi, G. B., Quarshie, A., & Mensah, J. K. (2022). Mitigating corruption in Sub-Saharan Africa: Does heterogeneity in corruption levels matter? Public Integrity, 24(2),

Amoah, C., & Steyn, D. (2023). Barriers to unethical and corrupt practices avoidance in the construction industry. International Journal of Building Pathology and Adaptation, 41(6),85 -101.

Anderson, P. (2023). Cobalt and corruption: The influence of multinational firms and foreign states on the Democratic Republic of Congo. Journal for Global Business and Community, 14(1).

Arieff, A. (2025). Conflict surge in Eastern Democratic Republic of Congo: Issues for Congress (CRS Report No.IN12495). Congressional Research Service. https://crsreports.congress.gov/product/pdf/IN/IN12495

Asomah, J. Y. (2020). Can private media contribute to fighting political corruption in sub-Saharan Africa? Lessons from Ghana. Third World Quarterly, 41(12), 2011-2029.

Baker, T., & Nelson, R. E. (2005). Creating something from nothing: Resource construction through entrepreneurial bricolage. Administrative Science Quarterly, 50(3), 329–366.

Basem, E., & Saeh, M. (2024). The impact of corruption on some aspects of the economy. International Journal of Economics and Finance, 5(8), 1–10. https://doi.org/10.5539/ijef.v5n8p1.

Bertelsmann Stiftung’s Transformation Index (BTI). (2014). Democratic Republic of the Congo Country Report. Retrieved on May 08, 2019

Brazys, S., & Kotsadam, A. (2020). Sunshine or curse? Foreign direct investment, the OECD anti bribery convention, and individual corruption experiences in Africa. International Studies Quarterly, 64(4), 956-967

Breen, M., & Gillanders, R. (2024). Money down the drain: Corruption and water service quality in Africa. Governance, 37(1), 119-135.

Bullough, A., Renko, M., & Myatt, T. (2014). Danger zone entrepreneurs: The importance of resilience and self efficacy for entrepreneurial intentions. Entrepreneurship Theory and Practice, 38(3), 473–499.

Business Anti-corruption Portal. (2018). DR Congo Corruption Report.

Ceva, E., & Ferretti, M. P. (2021). Upholding public institutions in the midst of conflicts: the threat of political corruption. Ethics & global politics, 14(3), 1961379.

Chêne, M. (2010). Overview of corruption and anti-corruption in the Democratic Republic of Congo (DRC). Transparency International No. 257. U4 Anti-Corruption Resource Centre. Bergen: CMI. Available at: https://assets.publishing.service.gov.uk/media/57a08af3e5274a27b2000875/expert-helpdesk-257.pdf Last accessed: 24.12.2018

CPI (2024). Corruption Perception Index 2024. Transparency International https://www.transparency.org/en/countries/democratic-republic-of-the-congo

Creswell, J. W, & Plano Clark, V. L. (2018). Designing and conducting mixed methods research. Sage publications.

De Soto, H. (1989). The other path: The invisible revolution in the third world. Harper & Row.

Emid, A. (2018). Democratic Republic of Congo: rich nation, risk nation. Global Finance. Available at: https://www.gfmag.com/magazine/may-2018/dr-congo Last accessed: 26.07.2019

Epaphra, M., Massawe, J. (2017). Corruption, governance and tax revenues in Africa. Business and Economic Horizons, 13 (4), 439–467. doi: http://doi.org/10.15208/beh.2017.31

Eshun, J., & Baah, J. A. (2020). What Does Recent Survey Data Say About the Effect of Corruption on Poverty in Africa. Journal of Economics, Management and Trade, 25(6), 1-13

Fagbadebo, O. (2019). Corruption and the Challenge of Accountability in the Post-Colonial African States. Journal of African Union Studies, 8(1), 9-32.

Fayad, N. M. (2023). Evidence on the impact of corruption on economic growth: A systematic literature review. BAU Journal - Creative Sustainable Development, 4(2). https://doi.org/10.54729/2789-8334.1105.

Fombad, C. M, & Steytler, N. (2020). Corruption and constitutionalism in Africa. Revisiting control measures and strategies. Oxford University Press.

Gans-Morse, J., Borges, M., Makarin, A., Mannah-Blankson, T., Nickow, A.,and Zhang, D.(2018). Reducing bureaucratic corruption: Interdisciplinary perspectives on what works. World Development, 105:171–188.

Goel, R. K. and Nelson, M. A. (2010). Causes of corruption: History, geography and government. Journal of Policy Modeling, 32(4):433–447.

Harnois, Y. G., & Gagnon, S. (2022). Fighting corruption in international development: a grounded theory of managing projects within a complex socio-cultural context. Journal of Advances in Management Research, 19(5), 677-712.

Harnois, Y. G., & Gagnon, S. (2023). Killing a Country and Getting Away with It: Neopatrimonialism and Incurable Corruption by Political Elites Linked to International Development Aid. Journal of Developing Societies, 39(3), 289-326. https://doi.org/10.1177/0169796X231178568

Hope, K. R. (2023). Channels of corruption in Africa: An analytical review and assessment of trends in economic and financial crimes. In K. R. Hope, Corruption, sustainable development and security challenges in Africa (pp. 35–56). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-32229-7_3.

Hugo, T. (2023). The curse of a colonial institution, not resources: Colonialism and kleptocracy in Congo. MUNDI, 3(1), 1–26. https://tuljournals-qa.non-proxied.tulinfra.page/index.php/mundi/article/view/744/519.

International Monetary Fund. (2022). Good governance in Sub-Saharan Africa. https://doi.org/10.5089/9781513584058.07.

Johnston, M. (2005). Syndromes of Corruption: Wealth, Power, and Democracy. Cambridge University Press.

Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291.

Kashala, D. M. (2026). An entrepreneurial framework to achieve economic growth and reduce poverty in the Democratic Republic of Congo. Doctoral thesis, Cape Town: Cape Peninsula University of Technology.

Khan, M. (2024). Corruption and entrepreneurial intentions. Journal of Business Research.

Kimenyi, M. S., & Mbaku, J. M. (2019). Institutions and collective choice in developing countries: applications of the theory of public choice. Routledge.

Koeswayo, P. S., Handoyo, S., & Abdul Hasyir, D. (2024). Investigating the relationship between public governance and the Corruption Perception Index. Cogent Social Sciences, 10(1), 2342513. https://doi.org/10.1080/23311886.2024.2342513.

Kohnert, D. (2024). Prospects and challenges for the export of rare earths from Sub-Saharan Africa to the EU. SSRN. https://ssrn.com/abstract=4687731

Kongolo, N. M. (2017). Problématique de la bancarisation de la paie des salaires des agents et fonctionnaires de l’etat en rdc. Institut Supérieur Pédagoqique.

Krueger, A. O. (1974). The political economy of the rent-seeking society. American Economic Review, 64(3), 291–303.

Kubbe, I., Baez-Camargo, C., & Scharbatke-Church, C. (2024). Corruption and Social Norms: A New Arrow in the Quiver. Annual Review of Political Science, 27.

Kwon, I. (2014). Motivation, discretion, and corruption. Journal of Public Administration Research and Theory, 24(3):765–794.

Lambsdorff, J. G. (2003). How corruption affects productivity. Kyklos, 56(4), 457–474. https://doi.org/10.1046/j.0023-5962.2003.00233.x.

Lee-Jones, K. (2020). Anti-Corruption Resource Centre. The Democratic Republic of Congo: overview of corruption and anti-corruption. Transparency International. Available at: https://www.u4.no/publications/democratic-republic-of-congo-over

Lohaus, M., & Bussmann, M. (2021). The politics of survival or business as usual? Exploring the effects of armed conflict on corruption. Journal of International Relations and Development, 24(1), 149-170.

MacLachlan, K. (2018).“Corruption and conflict: hand in glove.” NATO Review, December 6, 2018. https://www.nato.int/docu/review/articles/2018/12/06/corruption-and-conflict-hand-in-glove/index.html, accessed on August 15, 2024.

Mamo, D. K., Ayele, E. A., & Teklu, S. W. (2024). Modelling and analysis of the impact of corruption on economic growth and unemployment. Operations Research Forum, 5(2), 36. https://doi.org/10.1007/s43069-024-00316-w.

Mongane, C. E., Aganze, K. I. (2017). Disposition on young people to become entrepreneurs in Bukavu town- Democratic Republic of Congo. International research symposiu. Available at: https://www.researchgate.net/publication/324151789_Disposition_of_Young_People_to_become_Entrepreneurs_in_Bukavu_town-Democratic_Republic_of_Congo Last accessed: 03.04.2021

Mongi, C., & Saidi, K. (2023). The impact of corruption, government effectiveness, FDI, and GFC on economic growth: New evidence from global panel of 48 middle-income countries. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-023-01509-0.

Mu, Q., & Zhao, Y. (2024). Transforming entrepreneurship education in the age of artificial intelligence. Resources Data Journal ONLINE ISSN, 3, 2–20. https://doi.org/10.50908/rdj.3.0_2.

Mushigo, B. H., Kanyurhi, E. B., & Mbonekube, W. B. (2019). Relation entre la Microfinance et la Performance Perçue des PME : Rôles Médiateur et Modérateur de l’Opportunité Entrepreneuriale et de la Prise de Risque. Finance Contrôle Stratégie, 22–4. https://doi.org/10.4000/fcs.3746.

Muslim, M., & Mais, R. (2023). The interplay between transparency, accountability, and corruption: A contemporary discourse. Advances: Jurnal Ekonomi & Bisnis, 1, 332–343. https://advancesinresearch.id/index.php/AJEB/article/view/268/14.

Mvondo, S. (2015). National-level corruption risks and mitigation strategies in the implementation of REDD+ in the Democratic Republic of Congo: An overview of the current situation.

Myint, U. (2000). Corruption: causes, consequences, and cures. Asia Pacific Development Journal, 7 (2), 33–58.

Ndlovu-Hlatshwayo, E., & Msimango-Galawe, J. (2023). The Critical Success Factors for Entrepreneurial Coaching in South African Business Incubators. Jurnal Maksipreneur: Manajemen, Koperasi, Dan Entrepreneurship, 13(1).

Neudorfer, N. S., & Theuerkauf, U. G. (2014). Buying war not peace the influence of corruption on the risk of ethnic war. Comparative Political Studies, 47(13), 1856-1886.

Nguyen, T. M., Tran, Q. T., Nguyen Thi, Q. N., & Doan, H. P. (2025). Local corruption and corporate risk-taking: new evidence from an emerging market: TM Nguyen et al. Asian Journal of Business Ethics, 14(1), 285-302.

North, D. C. (1990).Institutions, Institutional Change and Economic Performance. Cambridge University Press.

Nwoye, J. (2024). Entrepreneurship development and poverty alleviation in the society (a study of young men and women entrepreneurs in Lagos State). In International Journal of Research in Marketing, Entrepreneur and Management (Vol. 9, Issue 2).

Nye, J. S. (1967). Corruption and Political Development: A Cost Benefit Analysis. American Political Science Review, 61(2), 417-27. http://dx.doi.org/10.2307/1953254

Ogbari, M. E., Folorunso, F., Simon-Ilogho, B., Adebayo, O., Olanrewaju, K., Efegbudu, J., & Omoregbe, M. (2024). Social Empowerment and Its Effect on Poverty Alleviation for Sustainable Development among Women Entrepreneurs in the Nigerian Agricultural Sector. Sustainability (Switzerland), 16(6). https://doi.org/10.3390/su16062225.

Olaoye, O., Ibukun, C. O., Razzak, M., & Mose, N. (2023). Poverty prevalence and negative spillovers in Sub-Saharan Africa: a focus on extreme and multidimensional poverty in the region. International Journal of Emerging Markets, 18(9). https://doi.org/10.1108/IJOEM-01-2021-0028.

Rahmé, M.; & Walsh, A. (2022). Corruption Challenges and Responses in the Democratic Republic of Congo. The Institute of Development Studies and Partner Organisations. Report. https://hdl.handle.net/20.500.12413/17614

Rose-Ackerman, S. (2002). ‘‘Grand’’ corruption and the ethics of global business. Journal of Banking & Finance,26(9), 1889-1918. http://dx.doi.org/10.1016/S0378-4266(02)00197-8

Ruankaew T. (2016). Beyond the Fraud Diamond International Journal of Business Management and Economic Research (IJBMER), Vol 7(1),2016, 474-476; p. 476

Ryvkin, D. and Serra, D. (2019). Is more competition always better? An experimental study of extortionary corruption. Economic inquiry, 57(1):50–72.

Senu, O. (2020). A critical assessment of anti-corruption strategies for economic development in sub-Saharan Africa. Development Policy Review, 38(5), 664–681. https://doi.org/10.1111/dpr.12442.

Serra, D. (2012). Combining top-down and bottom-up accountability: evidence from a bribery experiment. The journal of law, economics, & organization, 28(3):569–587.

Shleifer, A., & Vishny, R. W. (1993). Corruption. Quarterly Journal of Economics, 108(3), 599–617.

Titeca, K, & de Herdt, T. (2019).“Failed State? How the DRC Continues to Deliver Public Services.” The Conversation. http://theconversation.com/failed-state-how-the-drc-continues-to-deliver-public-services-122055.

Trabelsi, M. A. (2024). The impact of corruption on economic growth: A nonlinear evidence. Journal of Social and Economic Development. https://doi.org/10.1007/s40847-023-00301-9.

Transparency-International (2023). Corruption perception index. https://www.transparency.org/en/cpi/2021.

Treisman, D. (2000). The causes of corruption: a cross-national study. Journal of public eco- nomics, 76(3):399–457.

Treisman, D. (2007). What have we learned about the causes of corruption from ten years of cross-national empirical research? Annual review of Political science, 10(1):211–244.

Uddin, I., & Rahman, K. U. (2023). Impact of corruption, unemployment and inflation on economic growth: Evidence from developing countries. Quality & Quantity, 57(4), 2759–2779. https://doi.org/10.1007/s11135-022-01481-y.

Ugur, M. and Dasgupta, N. (2011). Evidence on the economic growth impacts of corruption in low-income countries and beyond: a systematic review. EPPI-Centre Social Science Research Unit, Institute of Education, University of London, pages 1–134.

United Nations (2023) The sustainable development goals report - special edition. https://unstats.un.org/sdgs/report/2023/. Accessed 16 Dec 2024

United Nations Development Programme (2023) Global multidimensional poverty index (MPI). Unstacking global poverty. Data for high impact action. New York. https://hdr.undp.org/content/2023-global-multidimensional-poverty-index-mpi

Van Veldhuizen, R. (2013). The influence of wages on public officials’ corruptibility: A laboratory investigation. Journal of economic psychology, 39:341–356.

Vian, T. (2019). Anti-corruption, transparency and accountability in health: Concepts, frameworks, and approaches. Global Health Action, 13, 1694744. https://doi.org/10.1080/16549716.2019.1694744

Warf, B. (2019). Geographies of Sub-Saharan African corruption. In Global corruption from a geographic perspective. GeoJournal Library, vol 125. Springer, Cham. https://doi.org/10.1007/978-3-030-03478-8_5.

Wenyah, S. (2022). Anti-corruption initiatives in Africa’s public sector. In K. Ogunyemi, I. Adisa, & R. E. Hinson (Eds.), Ethics and accountable governance in Africa's public sector, Volume I. Palgrave Studies of Public Sector Management in Africa. Palgrave Macmillan, Cham. https://doi.org/10.1007/97.

Weber, M. (1978). Economy and Society. University of California Press.

Williamson, O. E. (1985). The economic institutions of capitalism. Free Press.

Williams, C. C., & Shahid, M. S. (2016). Informal entrepreneurship and institutional theory: Explaining the varying degrees of (in)formalization. Entrepreneurship & Regional Development, 28(1–2), 1–25.

World Bank Group (2024). Worldwide Governance Indicators. Data Bank https://www.worldbank.org/en/publication/worldwide-governance-indicators

World Bank. (2024). Enterprise Surveys: Democratic Republic of Congo. World bank publishing.

Yasa, A. R. (2020). From Security Sector Reform to Endemic Corruption. Journal of Strategic Security, 13(3), 99-119.

Zhang, M., Zhang, H., Zhang, L., Peng, X., Zhu, J., Liu, D., & You, S. (2023). Corruption, anti-corruption, and Economic development. Humanities and Social Sciences Communications, 10(1), 434. https://doi.org/10.1057/s41599-023-01930-5.

Downloads

Published

2026-08-01

Issue

Section

Original Research Paper

How to Cite

Kashala, D. M., & Rena, R. (2026). Analysing How Corruption Affects Entrepreneurs in the Democratic Republic of Congo. International Journal of Applied Research in Business and Management, 7(9). https://doi.org/10.51137/wrp.ijarbm.840