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Small Businesses in the Economic Development

In: Business and Management

Submitted By dindin
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Even though small businesses in Zambia may not generate as much money as large establishments, they are a very important component of and a major provider to the strength of the Zambian local economy .This paper discusses the roles of small businesses in the economic development of Zambia. It aims to shed light on some of the challenges faced by most Zambian entrepreneurs as well as explain how entrepreneurs can develop for themselves a competitive advantage. It will further go on to identify and explain some entrepreneurial characteristics of our local entrepreneurs, while finally shedding light on how business opportunities are created.

Role of Small Businesses in Zambia’s Economy

According to the June 2010 Zambian Business Survey, it was noted that 80 % of the private sector in Zambia are small businesses with less than 50 employees. “These firms constitute the bulk of private sector employment in Zambia, employing 73% of the total labor force”. (Conway and Shah, JUNE 2010). Small businesses such as car washes, Beauty parlors, restaurants and small scale farmers open way for new employment opportunities and serve as building blocks of Zambia’s largest establishments. Not only do these small businesses offer employment opportunities, they also in turn assist in addressing some of Zambia’s key economic challenges such as Poverty reduction as well as increasing Government revenue collection. Additionally, small businesses in the agricultural sector add enormously to the nation’s food security.

Challenges Faced By Zambian Entrepreneurs Granting small businesses are playing a major role in the economic development of our country, however Entrepreneurs are still facing some challenges and restrictions such as inadequate access to capital in form of bank loans (due to the large collateral that is required when you want to get a loan),…...

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