the motives of zimbabwean entrepreneurs: a case study of harare
TRANSCRIPT
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ISSN: 2343-6662 ISSN-L: 2343-6662 VOL. 25, No. 7(3), May 2016
The Motives of Zimbabwean Entrepreneurs: A Case Study of Harare
Gerald Munyoro1, Mukai Chikombingo2 and Zivanai Nyandoro3
1, 2 Graduate Business School, School of Business Science and Management, Chinhoyi University
Technology, Zimbabwe 1Email: [email protected] 2Email: [email protected]
3School of Marketing & Management, Coventry University, Priory Street, Coventry, United
Kingdom 3Email: [email protected]
1Correspondence: [email protected]
Received: 13th May, 2016 Revised: 27th May, 2016 Published Online: 31st May, 2016
URL: http://www.journals.adrri.org/
[Cite as: Munyoro G., Chikombingo, M., and Nyandoro Z., (2016). The Motives of Zimbabwean Entrepreneurs: A
Case Study of Harare. Africa Development and Resources Research Institute Journal, Ghana: Vol. 25, No. 7(3), Pp. 1-
13, ISSN: 2343-6662, 31st May, 2016.]
Abstract
This study investigates the factors that motivate entrepreneurship and the nature of the relationship
between internal and external factors that influence individuals to engage in entrepreneurial activities in
Zimbabwe. There has been phenomenal growth in entrepreneurial activities over the past decade as the
informal sector eclipsed formal in terms of employment numbers as the Zimbabwean economy continued
to decline. The entrepreneurial phenomena and its attendant characteristics is investigated from the pre-
to the post-independence era. A sample of one hundred (100) entrepreneurs operating within the
transport, retail and educational sectors based in Harare were interviewed using a self-administered
questionnaire. Content analysis was used to analyse the data. The study findings showed internal factors
that motivate entrepreneurship that include the desire to do something new, quest for personal
independence and need for achievement and recognition, dissatisfaction with paid jobs and dead-end
career prospects. External motivational factors include; the aspiration to earn more money, exploiting
available opportunities and resources and, enhancing personal status and growth. The main
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recommendation is that government and key stakeholders should develop a national framework in order
to enhance the entry and long-term survival of aspiring and established entrepreneurs.
Keywords: entrepreneur, motive, entrepreneurial activities, external factors, internal factors, economy,
developed economies
INTRODUCTION
Many nations globally have been promoting entrepreneurship whose positive contributions to economic
growth are well documented. Contributing to the discourse, Bekmirzaeva (2013) suggests that small
businesses constitute over nighty percent of global enterprises. Deakins and Freel (2009) underscore that
entrepreneurs are leaders willing to take risk and exercise initiative, taking advantage of market
opportunities by planning, organizing, and employing resources. Quite significantly, this view is
applicable to entrepreneurs both locally and globally. More so, this can be generalised that Zimbabwean
entrepreneurs who continue to shape the economic well being of the nation.
Schneider (2007) is of the opinion that in developing countries small businesses are not only a major
contributor to the overall trade activities of a country, but also employs a sizeable part of the population.
Interestingly, in many developed countries such as American, Asian and European economies, central
governments play pivotal roles in crafting policies that support entrepreneurs. It can be noted that in a
number of ways, such views are applicable to entrepreneurs both locally and globally. Mauchi et al (2011)
opined that the current state of the Zimbabwean economy is a cause for concern for young people as they
are confronted with the major problem of unemployment.
Despite the emergence of black entrepreneurs during the pre and post 1980 independence eras there is
lack of empirical evidence on factors that drive and motivate entrepreneurship activities. This research
explores the motives of Zimbabwean entrepreneurs, in particular how government, stakeholders and
development partners can proffer and offer relevant support to sustainable initiatives by entrepreneurs.
This study, therefore, sought to answer the following research questions: (a) what are the factors that
motivate entrepreneurial activity in Zimbabwe? (b) How can the internal and external factors be used in
developing a national framework for entrepreneurship development in Zimbabwe?
LITERATURE REVIEW
It is significant to understand the term ‘entrepreneurship’ before embarking on issues related to area
under discussion. Thus Humbert and Drew (2010) suggest that there remains no consistency in what
defines entrepreneurship despite sizeable research having been made in respect of entrepreneurship
hence no commonly agreed definition has been reached at as stated by Kobia and Sikalieh (2010).
Smallbone and Welter (2006) are of the opinion that entrepreneurship entails an individual’s commitment
to capital accumulation and business growth while the definitions by Schumpeter (1934) infer
innovativeness and job creation characterised by taking risk and motivated by achievement as argued by
Kent (1985). Risk in entrepreneurship is well articulated by Kuritiko and Hodgetts (2004) who observed
that the process requires the willing to take calculated risks in terms of time, the ability to formulate an
effective venture team, the creative skill to marshal needed resources and to recognise opportunity where
there is chaos. Therefore, in this study entrepreneurship can be described as the implementation of an
individual’s talent using resources (material or immaterial) available and expanding the use of any such
resources in future.
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Theories of entrepreneurship
Scholarly theories continue to emerge on the field of entrepreneurship hence the importance of theoretical
frameworks in the development of the field cannot be overemphasised. Noteworthy is that the theories
have their foundation in psychology, economics, sociology and management among other disciplines. In
this research, five entrepreneurship theories will be discussed namely: Resource-based, economic,
sociological, opportunity-based and biological theories, psychological and entrepreneurial innovation
theories.
Resource-based entrepreneurship theories
The importance of financial, social and human resources is stressed by Aldrich (1999) and Davidson and
Honing (2003) given that the aspects enhance the individual’s ability to detect and act upon discovered
opportunities. Alvarez and Busenitz (2001) argue the resource-based theory of entrepreneurship
stipulates that access to resources by founders is an important predictor of opportunity based
entrepreneurship and new venture growth.
Human capital entrepreneurship theory
Becker (1993) elaborated that the human capital approach allows for an empirical application as it
borrows from optimal investment theory by highlighting income distribution. The underlying factors of
the human capital theory as argued by Becker (1975) are experience and education as supported by
Chandler and Hanks (1998) who observed that the knowledge gained from education and experience
represents a resource that is heterogeneously distributed across individuals and understanding
differences in opportunity identification and exploitation. Scuchtz (1971) suggests that the theoretical
concept of the theory is basically derived from investment theory in physical capital using marginal
analysis where agents decide in a dichotomous way on whether the expected returns of going
entrepreneurial will be higher than being an employee. Therefore, Kim et al (2003) come to the conclusion
that human capital factors are positively related to becoming a nascent entrepreneur.
Financial theory of entrepreneurship
These theories suggest that people with financial capital are able to acquire resources to effectively exploit
entrepreneurial opportunities and set up a firm to do so as suggested by Clausen (2006) while empirical
research has shown that the founded of new firms is more common when people have access to financial
capital as stated by while Blanchflower et al (2001). Though significant, a huge number of authors contest
this view indicating that the number of entrepreneurs started new ventures and firms without much
capital and financial capital is not significantly related to the probability of being promising
entrepreneurs as pointed out by Hurst and Lusardi (2004). In this sense, capital cannot be necessarily
ruled out but to a greater extent the ability to identify and commit oneself to new opportunities has been
seen as key entrepreneurial features of individuals as interpreted by Casson (1982), Kirzner (1973) and
Schumpeter (1934).
Social capital entrepreneurship theory
Literature shows that to a greater extent, access to larger social ties help in business start-ups. As
suggested by Shane and Eckhardt (2003) in this case an individual may have the ability to recognise that a
given entrepreneurial opportunity exist, but might lack the social connections to transform the
opportunity into business start-up. Furthermore, Classen (2006) states that entrepreneurs are surrounded
by a larger social network structure that constitutes a significant proportion of their opportunity
structure. Aldrich and Cliff (2003) and Garner et al (2004) make assertions that it is important for
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emerging founders to have access to entrepreneurs in their social network, as these people represent a
kind of cultural capital that growing ventures can draw upon in order to detect opportunities.
Economic entrepreneurship theories
The economic entrepreneurship theories are deeply rooted in the classical and neo-classical theories of
economics as well as the Austrian Market Process. The cited theories conduct an exploration of economic
factors in bolstering entrepreneurship behaviour and attitudes.
Classical theory
According to Cantillon (1755), this theory does not view the entrepreneur as a production factor as such,
but an agent that takes on risk and thereby equilibrates supply and demand in the economy. Ricardo
(1817) asserts that celebration of the virtues of free trade, specialization and competition was the core
aspect of the classical theory. The British industrial revolution which took place in the mid-1700 and
ended around 1830s gave birth to the theory. Say (1803) portrays the classical movement as one which
saw the entrepreneur taking the leading role in the production and distribution of goods in a competitive
marketplace. In Murphy et al (2006) classical theorists’ three modes of production are revealed as land,
capital and labour although the shortcoming of this theory is that it failed to explain the dynamic
upheaval by entrepreneurs of the industrial age.
Neo-classical theory
Neo-classical theorists such as Alfred Marshall developed on the criticisms that emerged regarding
classical theories. Bula (2012) noted that Alfred Marshall introduced an innovation function of an
entrepreneur by continuously seeking opportunities to minimize costs and ultimately maintaining
equilibrium in the economy through perfect competition. Marshal et al (2006) argued that the importance
of exchange coupled with diminishing marginal utility created enough impetus for entrepreneurship in
the neo-classical movement. The shortcomings of this theory were related to perfect competition not
allowing innovation and entrepreneurial activity among other issues of importance. Criticism on the neo-
classical movement also gave birth to the Austrian Market Process.
Austrian Market Process
Schumpeter (1934) influenced the APM model as he brought forward the dimension that concentrated at
human action in the context of an economy of knowledge. In other words, Marz (1991), states that
Schumpeter hardly denied that the process of accumulation is the ladder to social power and social
prestige; but he thought the very mainspring of the exercise of the entrepreneurial function is the
powerful will in asserting economic leadership. Aghion and Howitt, (1997) postulate that the model’s
core aspect is profit brought about by reward and inducement to innovations as well as risk taking in
entrepreneurial activities. Murphy et al (2006) indicate the fact that knowledge is communicated
throughout a market system, innovation transpires and entrepreneurs satisfy market needs. Kirzner
(1973) noted that the earlier neo-classical framework did not explain such a process but assumed perfect
competition, carried closed-system assumptions, traced observable fact data and inferred repeatable
observation-based principles. The AMP model circumstantially denied the cited assumptions as stated by
Acs and Audretsch (1988) who observed that fraud, deception, taxes and controls also contribute to
market system activity.
Sociological entrepreneurship theory
According to Ruef (2001) enterprises can be formed as a result of teams with three principles underlying
team formation distinguished: choice on the basis of homophily, purposive choice, and choice
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constrained by context or opportunity structure. Society thus becomes the basis for the analysis of
sociological entrepreneurship theory as stated by Landstrome (1998). Kamm et al (1990) also note that
much of the literature is based on the assumption that teams are a deliberate choice of a lead
entrepreneur or set of founders. In addition, readers are exposed to Reynolds (1991) who identified four
social contexts that relate to entrepreneurial opportunity namely social networks which build social
relationships; life stage context which involve analysing life situations and characteristics; experiences of
people and their sociological background as push factors to become an entrepreneur and lastly
population ecology whereby environmental factors play a role on the success of an entrepreneur. Bird
(1989) explains that there are psychological benefits derived from relationships between team members
unlike solo entrepreneurs who bear the burden of decision making and face consequences while
entrepreneurial teams spread the responsibility across individuals.
Psychological entrepreneurship theory
The psychological entrepreneurship theories put emphasis on personal characteristics in the
understanding of entrepreneurship as cited by Landstrom (1998) who suggested that the level of analysis
in psychological theories is the individual. In this part of the study the point of departure is going to be
personality traits; need for achievement and locus of control.
Personality traits theory
To the trait theorists there are enduring inborn qualities or potentials of the individual that naturally
make him an entrepreneur according to Simpeh (2011). Adding to the comprehension of the discourse,
Coon (2004) defines personality traits as stable qualities that a person shows in most situations. Although
no commonly agreed set of traits/inborn qualities is existent from the literature available, this model
generally gives an understanding into traits or inborn qualities by way of pinpointing characteristics
associated with an entrepreneur. Simpeh (2011) suggested that some of the characteristics or behaviors
associated with entrepreneurs are that they tend to be more opportunity driven (they nose around),
demonstrate high level of creativity and innovation, and show high level of management skills and
business know-how. A critical dimension in understanding the traits is also the issues of optimism which
is naturally adopted by entrepreneurs. Furthermore, such entrepreneurs are also defined by their
emotional resilience, great mental energy, commitment, and focus, the desire to challenge and change the
status quo among other positive traits. Despite lacking empirical research evidence, the traits theory can
be best understood through a closer look at one’s characteristics/behaviors and making a general
conclusion that one has the inborn qualities to become an entrepreneur.
Locus of control
One of the early propagators of the locus of control concept in the 1950s is Julian Rotter. The locus of
control is referred to as the individual’s perception about the underlying main causes of events in his/her
life as suggested by Rotter (1966). Through inference, a locus of control concept is hinged on the belief of
a relationship between what is known as the internal control orientation on whether the result of human
actions solely rely on what they do internally or on events outside human beings’ control external control
orientation. Several thinkers among them (Cromie, 2000; Koh, 1996; Robinson et al., 1991) have
documented empirical findings that conclude that the internal locus of control is an entrepreneurial
characteristic. Rauch and Frese (2000) also found that business owners have a slightly higher internal
locus of control than other populations. In a student sample, internal locus of control was found to be
positively associated with the desire to become an entrepreneur Bonnett and Furnham (1991).
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Need for Achievement theory
The need for achievement theory as propounded by McClelland (1961) pointed out that human beings
have a natural inclination or need towards success, accomplishment, excellence or achievement.
McClelland (9161)’s observation is a somewhat amplified version of Pervin (1980)’s argument that the
trait model focuses on enduring inborn qualities and locus of control on the individual's perceptions
about the rewards and punishments in his or her life. What can be deduced from these suggestions is that
the inborn inclination towards achievement and excelling drives the entrepreneurial thought processes.
Yet Johnson (1990) categorically noted the gap in research evidence propping up the achievement
motivation theory and entrepreneurship. Still, Shaver and Scott (1991) submitted that achievement
motivation may be the only convincing personal factor related to new venture creation. Mohar, et al
(2007) strengthened the line of argument and concluded that risk taking and innovativeness, need for
achievement and tolerance for ambiguity had positive and significant influence on entrepreneurial
inclination.
Entrepreneurial innovation theory
In giving depth to the aspect of entrepreneurial innovation Schumpeter (1947) noted that it was the doing
of new things or the doing of things that are already done in a new way. Mckeown (2008) viewed Peter
Drucker as the entrepreneurship guru who understood innovation to be an essential instrument used by
entrepreneurs to exploit change as an opportunity, further Drucker argued that innovation is a discipline
on its own that is capable of being learned as well as practiced. Amiri and Marimaei (2012) viewed
entrepreneurship as a key competency creativity and innovation. Further studies by Christensen and
Bower (1995) also necessitate what is termed disruptive innovations which are predominantly
intimidating to existing market leaders because they represent competition coming from an unexpected
direction. Bula (2012) asserts that the gurus of innovation argue that an experiment may fail but one has
to keep on trying until success is realized.
Opportunity-based entrepreneurship theory
Entrepreneurs identify opportunities, assemble required resources, implement a practical action plan,
and harvest the reward in a timely, flexible way Sahlman and Stevenson (1991) hence the opportunity-
based entrepreneurship approach provides a wide-ranging conceptual framework for entrepreneurship
research according to Fiet (2002). Shane (2000) argues that the opportunity based theory is anchored by
names such as Peter Drucker and Howard Stevenson. Drucker (1985) noted that entrepreneurs exploit the
opportunities that change in technology and consumer preferences a view that contradicted Schumpeter
(1934) who argued that entrepreneurs do not cause change. Wiklund (1998), Zahra (1991) and Stevenson
(1983) suggest that entrepreneurial firms base their strategies solely on opportunities that exist in the
environment, using opportunities as a starting point for developing strategies. Developing the
opportunity construct, Shane and Venkataraman (2000) put forward that entrepreneurship involves the
nexus of two phenomena: the presence of lucrative opportunities and the presence of enterprising
individuals.
Biological entrepreneurship theories
According to Eagley (1995) cited in Bula (2012) several of the academic theories of gender differences
offer explanations based on deeply seated cultural or even biological differences between men and
women. In this regard, most literature construes gender differences as aspects affecting the
entrepreneurial process. Schumpeter (1999) further suggests that risk has long been a central concept in
the entrepreneurship literature observed by various scholars. Authors generally agree that
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entrepreneurial activities involve risk-taking however, Brockhaus (1980) Aldrich and Wiedenmeyer
(1993) and Gartner (1989) in Bula (2012) assume that research has failed to consistently find risk-taking
propensity to be a trait distinguishing entrepreneurs from others. Powell and Ansic (1997) studied
business decision-making and their research came to a conclusion that women prefer lower risks than
men, especially in financial contexts. Consistent with this view are Sexton and Bowman-Upton (1990),
whose study also found evidence that indicated a lower preference for financial risks among female than
among male entrepreneurs.
Analysis of theories of entrepreneurship
Examining and evaluating the theories of entrepreneurship inculcates depth in the overall research
outcomes of this study. Developing nations, Zimbabwe included are in the present day more concerned
about how to make the best of entrepreneurship among its citizenry. The reflection attained from the
above discussion shows that entrepreneurship as a field has significant and an assortment of pertinent
theories. Indeed, Zimbabwean entrepreneurs conform to the economic, psychological, sociological,
anthropological, opportunity-based, biological and resource-based theories found from a body of
empirical research evidence. To a greater extent, entrepreneurial innovation in the country’s is lacking in
what Hak choi (2008) would suggest that the innovation process in less developed countries (LDC)s is
often that of imitating and adapting, instead of the traditional notion of new product or process discovery
and development.
Having defined the term ‘entrepreneurship’ as well as discussing the theories of entrepreneurship, it is
also important to understand the history of entrepreneurship in general and Zimbabwe in particular.
Thus the ever evolvement of entrepreneurship globally has been necessitated by the innovative nature of
conducting businesses in the business world. The earliest theories of entrepreneurship were developed by
Cantillon around 1725 as suggested by Smith and Chimucheka (2014). This means that the study on
entrepreneurship stretches back to the 17th and 18th centuries seen through the works of Cantillon and
Adam Smith and the great depression era of the 1930s which led to the downfall of world economies as
noted by Romer (2003). As Acs and Audretsch (2008) argue that contemporary theories of
entrepreneurship generally focus on the recognition of opportunities and the decision to exploit them. It
is also important to note that this study will only concentrate more on the history of entrepreneurship in
Zimbabwe rather than globally as the study tries to understand what motivates Zimbabweans to start
their own business an area which has not been researched on as literature suggest.
With reference to Zimbabwe, the evolvement of Zimbabwean entrepreneurship is well noted. The
discussion covers the periods in which black Zimbabweans started participating in the economic
development of the country and these periods are divided eras. The first one being Pre independence
entrepreneurship era of 1950s-1980s and up to present. This is important as it will give the background of
what motivates Zimbabweans to start their own business as discussed earlier on in the study.
Pre independence entrepreneurship (1950s-1980)
This era which is largely referred to as colonial Rhodesia, was characterised by various socio-economic
and political ills that led to gross marginalisation of blacks. Sanders et al (2005) correctly put forward the
notion that dominant reasons or motives why individuals participate in entrepreneurial activities are
primarily based on individuals who perceive a business opportunity or view entrepreneurship as their
last resort and thus feel compelled to start businesses because other work options are either nonexistent
or unsatisfactory. Ndiweni and Verhoeven (2013) concur with this argument and note that in other
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marginalized parts of the country individuals are involved in entrepreneurship as a protest against the
government (the Smith Regime in this instance) whose role has little relevance to their lives. Ndoro (1996)
however observed that as part of the legacy of colonial rule, most of the activities in the informal sector
were deemed to be illegal. In that respect, communities seek to redress social grievances through
economic creativity as articulated by Hagen (1957); Shapero and Sokol (1982).
First Decade after independence entrepreneurship (1980- 1990)
Maphosa (1998) brought to the fore the idea that building on cultural values of self-reliance,
independence, and pride, some communities prefer to survive in spite of the government. This has been
seen to be a key driver of entrepreneurship in this category given the history of colonial rule. Despite the
nation’s attainment of independence in 1980; glaring inequalities between blacks and whites; the
inheritance of minority-focused policies and regulations greatly affected the economic performance such
that blacks continued to seek for the redress of the existing inequalities through venturing into
entrepreneurial activities. Mazingi and Kamidza (2011) suggested that as a result of racial factors, the
whites who constituted 4% of the country’s population controlled over 90% of the economy in terms of
owning the means of production while blacks who accounted for 96% of the population only controlled
10% of the economy. The Riddel Commission of 1981 as suggested by Ndiweni and Verhoeven (2013)
reviewed about 28 Acts which prohibited informal activities and recommended that they be repealed, a
development which opened opportunities for entrepreneurs. The conclusion that can be drawn in this
instance is that small businesses and entrepreneurial activities were used as critical tools of reversing the
vestiges of the colonial past.
Second Decade entrepreneurship (1990-2000)
As earlier alluded, the lack of viable alternatives compelled many to engage in informal activities in spite
of several challenges that characterise this sector such as: lack of security; organisation; recognition; social
protection and legal representation; lack of government and institutional support and inaccessible
resources as argued by Ngundu (2010). The adoption of the Economic Structural Adjustment Program
had major repercussions on the country’s economic performance thus the major alternative still was to
adopt entrepreneurial skills. Kamidza et al (1999) agree that inadequacies of ESAP included lack of
stakeholder consultations during the design of the programme; lack of national ownership; failure to
factor in the likely impact of exogenous factors particularly drought; a combination of frictional and
structural vulnerability; and skewed access to resources. Saunders (1996) stated that the working class
bore the brunt of ESAP, as public expenditure on healthcare declined by 39% in 1994-95, inflation
averaged over 20%, and over 55,000 Zimbabweans lost their jobs.
Third Decade entrepreneurship (2000-2010)
Large businesses in this era continued to muscle out small businesses because of the capability to acquire
cutting age technological equipment that is a necessity in the ever changing economic environment. The
fast track land reform also took off in year 2000 coupled with many economic changes. Fundira (2007)
noted that some Zimbabwean businesses benefited from the situation by taking advantage of poor
enforcement of financial regulations to exploit ordinary Zimbabweans through criminal strategies such as
money laundering, as in the case of ENG Capital. Despite such misgivings entrepreneurship through
small businesses continued to thrive. Literature on entrepreneurship is also littered by assumptions that
entrepreneurs always thrive and become successful which is not necessarily true considering the case of
Zimbabwe. Coupled by dynamic economic trends, motivations also seem to be more inclined to the
dynamic environment.
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Zimbabwean entrepreneurship from 2010 to date
The Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) economic blueprint
introduced in 2013 is the current economic policy being undertaken by Zimbabwe. According to the Zim
Asset document, Zimbabwe experienced a deteriorating economic and social environment since 2000
caused by various factors such as land reform, declining economic growth, hyperinflation, poor
performance of revenue inflows, high debt among others. The continued collapse of the formal sector in
Zimbabwe in the last decade has also contributed to the growth of entrepreneurial skills and the
mushrooming of small businesses as other work options remain inexistent. Matsvai et al (2014) added on
to this argument and stated that as a result of the economic meltdown, industrial capacity utilization
declined dismally, companies closed, and thus giving birth to a thriving informal sector. Matsvai et al
(2014) also attributed the economic underperformance to political developments and government policies
which played a pivotal role in the adverse movements in economic variables in Zimbabwe since the turn
of the new millennium. Another dimension is brought about by Yamamoto (2014) who argued that
exacerbating this situation was the perception that independent entrepreneurs were persecuted, rather
than encouraged, by the government.
Having looked at the history of entrepreneurship in Zimbabwe, it is also significant to discuss what is
motivation and its implications on entrepreneurship. As Murali (2013) suggests, motivation implies an
inner state that causes a person to act towards the attainment of goals and it is a dynamic force setting a
person into motion or action. Motivation is an internal psychological feeling which has influence on the
likelihood of exploiting entrepreneurial opportunity as stated by Shane (2003). Furthermore, McClelland
(1985) argues that motivation is based on the capacity to derive satisfaction from establishing,
maintaining and restoring positive relationships with others. As Zimmerman and Chu (2013) suggest,
one recurring area of interest in the study of entrepreneurship is what motivates individuals to become
entrepreneurs. It is not surprising, therefore to note that it is very significant to study entrepreneurial
motives in order to foster entrepreneurship because motives influence the entrepreneurial process as
noted by Shane (2009).
That said, empirical evidence from the likes of Yalcin and Kapu (2008)’s study which was centred on
Kyrgyzstan entrepreneurs, shows that the desire to earn more money and the lack of appropriate job
opportunities were key motivators. In addition, Robichaud et al. (2001)’s study indicates that motivation
of entrepreneurs falls into four distinct categories: Extrinsic rewards; independence/autonomy; intrinsic
rewards and family security. According to Swierczek and Ha (2003) small enterprise owners in Vietnam
are more motivated by challenge and achievement than the necessity for a career and economic security
while Fulop (1994) found that Hungarian entrepreneurs were motivated by opportunity, independence,
money, achievement, power and necessity. Filipino entrepreneurs were found to be motivated by the
desire to earn more money and to be independent as stated by Chu et al (1998). In the African context,
Chu et al (2007) concluded that Kenyan and Ghanaian entrepreneurs are motivated by increasing their
income and creating jobs for themselves and are the leading factors motivating them to become business
owners and to be (Fatoki 2010) autonomous, creative and raise capital. Therefore, most appearing
motivation factors in literature are: independence, money, achievement, opportunity, work related
motivations and work related reasons. As rightly observed by Herron and Sapienza (1992) excluding
motivation from the study of business creation results in an incomplete theory. That said, this is not a true
reflection of what happens in other part of the world such as Africa in general and Zimbabwe in
particular. There are no studies on what motivates an entrepreneur from a Zimbabwean perspective
hence the need to do the research in this area.
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METHODOLOGY
A survey design was used in the study to identify the factors that motivate entrepreneurs and how the
factors can be used to develop a national entrepreneurship framework in Zimbabwe. Given the limited
time and budgetary constraints, qualitative research designs are much easier to plan and carry out
(Berkwitts and Inui, 1998). Silverman (2011) states that qualitative techniques are extremely useful when a
subject is too complicated to be answered by a simple yes or no hypothesis. The population of the study
comprised two thousand (2000) entrepreneurs in Harare registered with the Ministry of Small and
Medium Enterprises Development and crossed-checked with databases from the Zimbabwe National
Chamber of Commerce, Confederation of Zimbabwe Industries, Institute of Directors and Small
Enterprise Development Corporation (SEDCO). The study was based in Harare the capital city where
most of the economic activities occur as inferred by Bailey (1987) and Singleton et al (1993). One hundred
(29 transport sector, 32 retail sector and 17 education sector and 22 other sectors) randomly sampled
entrepreneurs operating in Harare, participated in this study. The age range of participants ranged from
20 years to 70 years. The data that was collected included demographic, behavioural and attitudinal
(Marchington and Wilkinson, 2005). A self-administered questionnaire was used to collect data in this
study. Questionnaires are effective in collecting primary data (Robson, 2001). In addition, secondary data
was collected from text books, journals, newspapers and the internet. As Wegner (2002) points out that
data is divided into primary and secondary data. The use of questionnaires in qualitative and
quantitative research design is noted by Moore (2006) and Rickinson and Hay (2008). Content analysis
was used to analyse the data and the process involved grouping and categorising data into themes
(Munyoro, 2014).
RESULTS AND DISCUSSIONS
The study established that the majority of respondents were at least 30 years with 30.4% being aged
between 30-40 years, 39.1% between 40-50 years while 5.8% between 60 and 70 years. Only 2.9% were
aged 20 years and below while 21.7% were between 20 and 30 years. Zeroing in on the age component
gives one the conclusion that entrepreneurs above forty years are more established, experienced and well
to do individuals whose businesses have evolved and can be traced back to the early 90s. Persons aged 20
years and below are still to learn the ropes and have an uphill task to become more involved in
entrepreneurial activities with only 2,9% being observed, whereas the 21.7% representation of persons
between the ages of 20 and 30 is quite significant. Given that persons under the age of 40 are highly
regarded as the country’s future, a higher percentage of their sustainable involvement would be sufficient
to push the economic agenda. In this regard, Nyoni (2004) suggested that investment levels are not
sufficient to generate employment for the 300 000 school leavers on an annual basis while Mauchi et al
(2011) adds that gone are the days, when in Zimbabwe, education used to be a guarantee for any type of
job.
The greatest proportion of the respondents were in the retailing business (31.88) followed by 28.99% in
the transport sector, 20.29% in other sectors and 17.39% in the education sector. 1.45% of the respondents
did not answer to the question pertaining their age. The retailing sector can be traced back to the pre-
independence and still thrives in the post-independence era hence diversion in this sector has been
minimal. Kanyenze (2006) found that after independence, in an effort to keep the industry on its feet
there had been a robust practice of import substitution which had allowed a bit of both creativity and
innovation. This undoubtedly marked the rise of cross border trading which to a larger extent sustained
the retailing sector. The transport sector also has significant representation in this study and likewise has
been a sector dominated by black Zimbabweans. Entrepreneurship in education has risen to become a
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new venture creation that gained much attention in the mid 1990s and has seen a handful of schools
being established to date. Sixteen motives of entrepreneurship were presented on the questionnaire
which sought to establish why entrepreneurs venture into businesses among other factors that inhibit the
establishment of a business such as lack of finance. From data gathered, the motives of Zimbabwean
entrepreneurs were found to be strongly centred on 8 themes listed as follows: To earn more money;
Desire to be my own boss; Availability of opportunities; Personal Growth/satisfaction; Lack of a job or
career; Dissatisfaction with current job; To do something new and the Need for achievement or
recognition.
FINDINGS
In this study, establishing the motives of Zimbabwean entrepreneurs is a critical component in the
understanding of how entrepreneurship can be enhanced for the greater benefit of the economy. The fact
that the economy of Zimbabwe is currently facing a myriad of challenges has generated interest on what
measures the country could come up with in-order to cushion the economy. Various bodies of literature
especially the theories were found to be informative and further broaden the scope of the
entrepreneurship field. Zimbabwean entrepreneurial motivations generally follow the economic,
psychological, sociological, anthropological, opportunity-based, biological and resource-based theories.
Looking at the history of Zimbabwean entrepreneurship shows that the pre and post-independence eras
have seen the field transforming due the different socio-economic settings. The analysed data indeed
confirmed that motives are quite significant although they do not follow a uniform pattern, a
development which has a bearing on the lifespan of entrepreneurial activities.
Driven by the outcomes of the data gathered, the major themes drawn from this study are presented as
follows:
Internal factors
As established in the research findings, these features are internal to entrepreneurs or people in general
and are thought to influence people to start their own businesses. Enterprising is significantly regarded to
be an act by an individual; hence it is considered that any human being involved in entrepreneurship has
some force within him/herself that drives entrepreneurial strength. Bridge et al (2003) are of the opinion
that these factors are motives one is born with hence the argument in entrepreneurship field that
entrepreneurs are born but not made. This research revealed that entrepreneurial motives are not
mutually exclusive or inseparable but are used as a way of presenting the internal issues that drives one
to become an entrepreneur. Listed below are the internal factors found in this study in their order of
importance.
Desire to do something new.
As suggested by the results of the study, the desire to do something new, was identified as influential and
one of the guiding principles of entrepreneur, a view also supported by Deakins and Whittam (2000) who
noted that it is worth bearing in mind that the start-up and development process can concur over a
considerable period of time and what it means is that initial business ideas take time to formulate. This is
not surprising looking at yesteryear entrepreneurs such Aiden Mwamuka who started his business not
only to be independent but also to introduce new methods. In a way Mr. Mwamuka was the first to
pioneer high standard services in black communities in Harare and this was exactly what motivated Mr.
Mwamuka to be in business (Wild, 1997). Indeed, companies such as Bell Lab, IBM, Marks and Spencer
Procter and Gamble, 3M and many others around the world came as a result of the desire to do
something new (Drucker, 2004).
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To be independent in life/ to be my own boss
The evidence in this research suggested that most people want to be their own boss just as the evidence in
literature on entrepreneurship shows the same. This is supported by (Deakins and Whittam, 2000) who
noted that entrepreneurs are driven by the desire to be independent, to be their ‘own boss’ and to achieve
a growth in business in particular and the economy as a whole. Again another perfect example back in
history is Mr. Mwamuka who wanted to prove a point that he was capable of running a business and
making decisions independently without any superior as was the case when he was teaching. Relatedly,
people from minority groups whether in Zimbabwe or other countries were found to have started their
own business because that is the only way they could show that they can be their own boss. The popular
Gazaland in Harare that is dominated by the Shangani people from Chipinge is a case in point in this
regard.
Dissatisfaction with present job.
Evidence from this research also showed similarities to motives of entrepreneurship in South Africa and
Nigeria. It can be observed that in the past ten years, large companies have eliminated more jobs than
they have created making the uncertainty affect workers’ confidence and dissatisfaction. The landmark
July 2015 supreme court ruling that allowed employers to terminate employment on a three-month notice
exacerbated the situation in the case of Zimbabwe. The implication of such situations including the given
examples is that dissatisfaction with one’s current job in most cases leads to entrepreneurship. On the
other hand, entrepreneurs with their years of experience in a certain industry can be able to see some
shortcomings of that industry and may decide to introduce new ideas that can result in the introduction
of new products and service that obviously will benefit the market, society and the country as was the
case with Econet CEO Strive Masiiwa.
Lack of a job or career.
From the above discussion it also follows that lack of a job or career as suggested by the findings of the
research coerces people to become entrepreneurs. Respondents were found to have become
entrepreneurs by default given the paralysed industry and lack of formal occupation in the country. They
however exhibited the energy and stamina to satisfy their goals and persistency to establish ways of
generating income despite economic hardships. As discussed elsewhere in this study, entrepreneurs’
ambition to satisfy themselves influences the degree to which they seek to create something great,
important and significant to themselves and to the world at large.
Need for achievement or recognition
The results of this study clearly show that entrepreneurs are determined to start businesses to gain
approval, recognition and achievement. It is clear from the empirical evidence of entrepreneurs in U.S.A
that having a successful business brings a feeling of achievement. Examples of such entrepreneurs
internationally are Steve Jobs (Apple accessories) Mark Zuckerberg (Facebook) and Bill Gates (Microsoft)
to mention a few. Going back to the Zimbabwean history Denis Makomva, a trained builder, went into
business because he wanted to be recognised by the community as a successful businessman. He got this
nickname ‘King of African business men’ because he wanted to be recognised by the African and white
communities. He could only write his name despite his success in running his business empire (Wild,
1997). Most entrepreneurs strongly want to break new ground by offering new products and services
thus they feel that by starting a new business they are offering a valuable service to their customers.
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External factors
Having looked at the factors that are internal to people that are thought to influence entrepreneurs to
start businesses, this section therefore looks at the external features that motivates an entrepreneur to
start a business as elaborated below.
To earn more money/money.
The most popular motive in this research was found to be the prospect of monitory rewards through
starting businesses. This supports Fatoki (2010) and Yalcin and Kapu (2008) who suggest that most serial
entrepreneurs are motivated by the need to generate extra money or monetary profits. That said the fact
still remains that for an entrepreneur, having your own business can result in financial independence and
this is an enormous achievement for most people especially when the economy is in a period of decline as
has been the situation in Zimbabwe since 2000. Back in time, Jane Maruta is also a known example of an
individual who despite all the challenges she faced managed to set up a firewood sales point in
Ardbennie Road in Harare. This is supported by Wild (1997) who noted that the study on Jane
demonstrates how Jane struggled to secure her freedom from poverty.
Availability of opportunities and Resources
Most entrepreneurs in this research indicated that their decision to start businesses was as a result of
opportunities and availability of resources, a distinct feature as suggested by Stevenson (1990) and Shane
and Venkataraman (2000) who stated that the availability of resources such as capital, human assets, raw
material, infrastructure and utilities play a big role in motivating an entrepreneur. The same view can be
bolstered by the fact that a number of small firms started at Chiadzwa in Manicaland as a result of the
availability of diamonds while the youth were specifically considered since the government was
motivating the starting of businesses as a result of the availability of natural resources (Government
publications, 2013). The case of Mr Boka is also significant in that the availability of natural resources
such as gold and valuable agricultural land that motivated him to be an entrepreneur. What it means is
that Boka saw the opportunities in the availability of natural resources and decided to start businesses in
the related areas and this move made him one of the richest entrepreneurs in Zimbabwe (Wall Street
Journal, 2010).
Personal growth/ satisfaction
With reference to the findings of this research entrepreneurs were also found to be daring enough to do
what they genuinely enjoyed and achieve inner satisfaction and growth. As supported by McClelland
(1961), many entrepreneurs are motivated to do what they do as a result of attaining self-satisfaction;
hence the need to perform difficult and challenging tasks as Strive Masiiwa of Econet has shown.
Noticeably, even if they fail at times with reference to this study, the addiction to solve thorny issues and
the inherent and complex challenges of starting a company is what keeps them inventing and growing.
RECOMMENDATIONS
Education on entrepreneurship
Academic knowledge and training skills should be ushered to prospective entrepreneurs in the
mainstream education curricular. Harnessing entrepreneurial skills, attitudes and behaviours in schools,
universities and vocational training centres dotted across the country is critical in realising new
opportunities thus there is need for adequate preparation before one can start a business. Such new
prospects quite significantly mitigate youth unemployment, marginalisation, poverty and social trials
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and tribulations. A practical approach towards grooming entrepreneurs from the younger generations
also entails greater benefits in the long term. Therefore, seminars, training programmes, conferences,
advocacy programs and workshops can nurture the rewards of entrepreneurship. Interestingly, Mauchi
et al (2011) concluded that there is strong evidence that entrepreneurship education is still in the early
stages of development whilst Zimbabwean tertiary institutions still predominantly adhere to traditional
teacher- centered methods of delivery and assessment.
Promotion of an entrepreneurial culture
The Zimbabwean policy makers and government at large should provide an enabling environment for
entrepreneurs as well as to encourage the cultivation of an entrepreneurial culture amongst the
population. This can be done through review of the education curriculum, giving subsidies to the
entrepreneurs, establishing ideal business policies and finally initiating mechanisms that are flexible and
more accessible especially to women and youth. Lourenco et al. (2013) stress that the development of an
entrepreneurial mind-set and/or enterprising skills is on the agenda for developing graduates in order to
enhance their employability
Encouraging policies
Regulation policies in any sector have the potential to nurture or stall the economic involvement and
progress in any given country. The slow pace at which entrepreneurship in Zimbabwe is moving is
attributable to stringent policies. Government, stakeholders and development partners should champion
the deregulation of such policies that are deemed restrictive by entrepreneurs. Such policies include the
restrictive labour laws whose prescribed minimum wages for employees inhibit the formal setting up of a
business since upcoming entrepreneurs depend on low wage employees. Continued review of the ease of
doing business should be implemented. Other laws such as the Shop Licensing Act, Liquor Act, Food and
Food Standards Act, the Second Hand Goods Act, the Banking Act and the Customs and Excise Act may
have been approved to standardise and police activities in the small business sector however, the same
laws have often usher in tangible hindrances to the functions of entrepreneurs intending to start
businesses.
Criteria or instruments that govern support for entrepreneurs
Drawing ideas and expanding thoughts from all the factors that were found to motivate entrepreneurs, it
may be wise for the government and interested parties to come up with a criterion that includes the
assessment of motives when offering support to entrepreneurs. This enables the government at large to
identify which businesses are sustainable and the individuals with the potential of staying in business
over a considerable period of time. Another observation made is that the integration of support through
practical assessments and exercises of entrepreneurs in-order to do away with the depletion of talent and
the fully exploit the existing talent pool is critical.
Entrepreneurial mentorship
Support for entrepreneurs can be rendered through mentorship programs that rope in successful role
models like Devine Ndlukula of Securico, Phillip Mataranyika of Nyaradzo, Strive Masiyiwa of Econet
and Shingi Mutasa of TA Holdings. Such programs can include twinning of the said successful
entrepreneurs with emerging entrepreneurs where the former provide experience based education on
starting, running and building sustainable businesses. Again, policy makers and supporting agencies
should facilitate the holding of such programs and take the initiative of seeking guidance and direction
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on behalf of entrepreneurs. At a lower level, families, friends and relatives should offer unrelenting
support to new ideas, innovations and creativity brought about by entrepreneurs.
Entrepreneurial innovation
With Drucker (1985) in mind, entrepreneurs in the developing world are more of imitators than
innovators while Schumpeter (1999) described them as creative imitators. Though the two descriptions
are not entirely true with respect to all Zimbabwean entrepreneurs, it is necessary to note that less
innovation in the strictest sense can be identified due to a number of reasons. As a response to the
challenge of lack of innovation, this study observed the need to embrace newer technologies at
government level and putting in place infrastructure in that regard. Mobile technologies, social media,
machinery and information communication technologies are the cornerstone of the creation of newer
innovations by entrepreneurs who subsequently produce new products and services. Entrepreneurs
should therefore benefit and be able to tap on the information to undertake commercial projects that
benefit the country.
CONCLUSIONS
It is clear from various discussions that emanated from this research that entrepreneurs come from
different backgrounds hence the diversity of the motives that leads one to become an entrepreneur. The
motives discussed particularly in relation to Zimbabweans also explain the reasons why some businesses
are a huge success than others. Such variety in mentality and motivation also interestingly draws a
demarcation between why entrepreneurs fail while others succeed. The motives found in this study were
grouped between internal and external factors. Given the prevailing economic problems, most
entrepreneurs were found to be conducting businesses with the primary motive of earning money to
cater for varying resource and financial responsibility; a view understood both in the context of
established and new entrepreneurs. Youth entrepreneurship is also constrained by lack of financial
access, experience, unfavourable policy conditions and lack of entrepreneurial education. Going forward,
a practical curricular on entrepreneurship in schools, colleges and universities can advance the
enhancement of entrepreneurial skills and their contribution to economic development.
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