Entrepreneurship support can help grow Zimbabwe’s economy

All of these challenges are characteristic of the informal sector. Coupled with all of these, are government policies on increased taxes and ill-timed market liberalisation which has meant that some entrepreneurs have been forced out of business or leading to static business growth.

In recent years, all over the world, the promotion of entrepreneurship as an insurrection to solving numerous economic and social challenges facing developing countries has been receiving significant attention by, governments, policy makers and the academic fraternity.

Notwithstanding the attention that has been given, little has been done in trying to empower aspiring entrepreneurs and those in practice other than scuttlebutt street talk that has hyped on the topic. With the said magnitude of awareness there is now need to take a huge leap forward through providing support to aspiring entrepreneurs.

Entrepreneurship is the ingenious act of spotting an economic gap and marshalling the available resources in an efficient manner to move into that gap. It leads to investment and job creation. It besides being the most imminent way of solving both the social and economic woes bedevilling developing countries like Zimbabwe, a little has been done for its promotion but a lot has been done for its awareness.

A lot has been done in encouraging entrepreneurship by the Government, civic society, academic institutions and the corporate world. Why then does it seem like little change has been felt since such calls has been made for such a long time? Lest we change our approach to solving the problem, then the status quo won’t be averted.
Zimbabwe needs entrepreneurial education from a tender age supported by entrepreneurial promotion at a ripe age. By this I mean, pupils have to be taught entrepreneurship in schools and they then find the support they need to start-up as they are maturing.

An array of challenges, is affecting aspiring entrepreneurs in their savvy and zeal to establish successful enterprises that can change quite a good number of livelihoods in the country. Main constraints include negative interference in markets, such as over-regulation and bureaucracy by Government arms, especially in the process of registering a new start-up.

This kind of interference is also being exerted by larger enterprises in the form of monopolies, collusion and unfair trade practises. In such cases, the government has to intervene to maintain fair competition for the protection of start-ups and promotion of entrepreneurship.

Due to the said challenges, too many entrepreneurs are currently working in the informal sector of the economy. Few businesses are registered. Many of their businesses suffer from fluctuating production and have difficulties accessing capital and wider markets, poor infrastructure and other amenities and a lack of structured land tenure system.

The introduction of innovation and new products and services by entrepreneurs thrives in an environment where governments create the enabling atmosphere. This can be achieved through the use of institutional and policy objectives to establish the best conditions possible enabling individuals to bet on the future with the goal to creating value. Empowering people to take entrepreneurial initiatives and helping them to build formidable businesses has been one of the most effective ways of reducing poverty and putting peoples life into their own hands.

Entrepreneurship can only flourish in Zimbabwe if the government can help in removing the barriers to business start-up. The Government can also encourage start-ups through the use of an incentive-based structure of taxation and regulation that rewards initiative and calculated risk-taking. Simple rules of registration allow businesses to start up quickly and get on with the task of providing goods and services to the market thereby contributing to the GDP of the country.

The level of regulation affects whether entrepreneurs make the positive choice of entering the formal economy instead of the informal. A positive choice will ensure more revenue to the government in terms of tax inflow and the plight of the people will also be uplifted as more wealth is created and more jobs are also created.

A stronger culture needs to be promoted among those who are not entrepreneurs especially the youth are an important target group in this cause. They can be encouraged to think about business ownership as a career option and to combine it with technical skills. Promoting such a culture among youth can be effected through the education and training system.
The Government can then take part in making the environment conducive for small business that can go a long way in poverty reduction through the development of vibrant and productive small enterprises.