Entrepreneurship

-Entrepreneurship refers to a business which is run so as to generate profit

-Occupation refers to any kind of work done in exchange for a regular salary
-An entrepreneur is a person who invests in doing a business
-When doing occupations, people are looking at careers/jobs/employment

Factors affecting Entrepreneurship

-availability of capital
-availability of skilled labour
-availability of markets to sell products
-government policies eg Indigenization policy and Zimbabwe Agenda For Sustainable Socio-
Economic Transformation ( ZIMASSET )
-availability of transport to move workers, raw materials and finished products
-availability of modern technology like computers and computer software
-availability of raw materials eg milk in the production of home- made ice cream
-availability of power supply in the manufacturing of goods

Characteristics of a Good Entrepreneur

-must be skilled or very knowledgeable

-Risk taker- can survive competition
-Fight competition-through advertizing, giving free gifts etc
-Innovative -able to come up with new ideas or being creative, coming up with new products

ADVANTAGES OF ENTREPRENEURSHIP

-Entrepreneurship has various advantages such as:

-creates employment
-reduces poverty since people get money
-improves livelihoods for people
-leads to development of new technology
-reduces unemployment rate
-leads to development of infrastructure
-generation of foreign currency

CHALLENGES FACED BY ENTREPRENEURS

-lack of capital to buy raw materials and pay labour

-lack of skills to run the business
-mismanagement of funds which causes downfall
-lack of raw materials to produce goods
-lack of government support eg failure to provide loans to entrepreneurs
-poor market prices especially when there are many suppliers for example at Tobacco Sales
Floor
-lack of collateral security to borrow loans
-unable to design a business plan which is the roadmap for a business
-long process in registering the company (bureaucracy)

MEASURES TAKEN BY THE GOVERNMENT TO PROMOTE ENTREPRENEURSHIP

-availing loans to the entrepreneurs at low interest rate

-Designing policies like Indigenization policy and Zimbabwe Agenda For Sustainable Socio-
Economic Transformation (ZIMASSET)
-creating markets for entrepreneurs for example commodity markets where primary products are
sold for example the one in Mbare
-giving inputs eg under the Presidential Inputs Scheme eg to farmers
-training entrepreneurs through various training institutions eg Nyahoni Training Centre in
Chikomba and Mushagashe Training Centre in Masvingo

*However, the government lacks foreign currency to import cheap raw materials
-the government lacks adequate capital to give entrepreneurs
-most people are negative on entrepreneurship. It is viewed as something for failures in life.
FORMS OF ENTREPRENEURSHIP

-there are forms such as:

1. Sole trader/ independent trader/ sole proprietor
2. Partnerships
3. Corporations

a) SOLE TRADER

-Sole means one

-sole traders are business people who operate individually
-capital is usually raised from personal or own savings
-sole trade is very easy to run because decision making is fast
-they need less capital volumes
-they are usually located near customers
-They have few legal formalities eg Trading Licenses
-can deal with selling groceries, farm produce or other services
-business usually employs relatives

*However, sole traders usually charge high prices for their products
-they usually lack capital for expansion eg to expand a retail shop or expanding the farm
-their businesses usually die with founders ( the death of the owner usually causes a downfall to
the business )
-they usually suffer from unlimited liability due to limited capital
-they lack specialization which can reduce sales
b) PARTNERSHIPS

-A partnership is an association of 2 to 20 people who join to do business

-these members are called partners
-A partnership is bigger than a sole trader
-it falls under the private sector
-it is formed guided by a partnership deed ( a written agreement )

-the partnership deed has the following information:

1. Name of the partnership
2. names of partners
3.duties of each member
4. how conflicts are solved

-there is general and limited partnership

ADVANTAGES
-raise more capital than a sole trader
-skills can be put together
-better decisions can be made because of numbers
-allows specialization

DISADVANTAGES
-Decision making is slow due to numbers
-Conflicts can lead to dissolution of the partnership
-limited in raising large capital volumes
-can lack continuity as one partner dies or is bankrupt
-sleeping or dormant partners do not actively contribute to the running of the business

c) CORPORATIONS

-These are bigger enterprises with headquarters in one country and branches in several countries
-example includes British Broadcasting Corporation
-other corporations include Unilever, Bata, Econet and Lonhro
-if these corporations exist in different countries, they are termed multinational corporations

ADVANTAGES
-Have very large capital volumes
-employ a very large number of people
-earn foreign currency to the host country
-lead to development of new technology
-improves government revenue through tax paying

DISADVANTAGES
-Exploit local labour in host country (employed for poor salaries and poor working conditions)
-causes stiff competition which then causes death of local industries
-causes retrenchment of workers if the company relocates (moves to the other country)
-more profits are repatriated to the mother (parent) countries

ROLE OF ADVERTIZING IN ENTREPRENEURSHIP

Def: Advertizing means persuading customers to buy the products

*has functions such as ;
-launch new products in the market
-remind customers of other products introduced back
-to fight competition from other suppliers of the same products
-attract customers so that they buy products
-fight adverse publicity by other people and the media
-to increase profits
-to increase sales
-to recruit employees through newspaper advertisements
-to inform customers on prices, how to use products and where to find them.

*Entrepreneurs can be classified as

1. Formal business
2. Informal business
-These are again termed sectors of employment

a) Formal Business

-these are large enterprises which are registered with the registrar of companies
-this type of business operates under rules and regulations
-has written code of conduct
-is well organized
-usually employs skilled labour
-has many workers (employees)
-examples include all Ministries in Zimbabwe eg;
1. Ministry of Primary and Secondary Education
2. Ministry of Mines and Mining Development
3. Health and Child Care
-workers have regular salaries
-have regular working hours eg from 8am to 4pm
-there is high job security

*Job security is a condition when workers are assured that they will remain employed by
the same employer
-helps in planning purposes
-improves standard of living of the worker and family
-raises social status
-leads to job satisfaction

DISADVANTAGES

-they require large capital volumes to set up

-usually only skilled labour and ignores semi-skilled and unskilled labour
-difficult to run since they are too big
-they are usually corrupt

b) Informal Sector Business

Def: these are small enterprises which are not registered with the registrar of companies
-they are an opposite of formal businesses
-they are usually individually owned or family owned
-usually employs relatives
-can employ semi-skilled and unskilled labour
-needs low capital volume ton start
-can be found at home (backyard industry)
-has irregular working hours
-has irregular salary
-poorly organized
-they are easy to form
-create employment for many people
-include enterprises like:

1. Brick moulding
2. Welding
3. Carpentry
4. Production of freezits

DISADVANTAGES

-have limited capital volumes

-have limited space for expansion due to lack of capital
-lack of collateral security to obtain bank loans
-mismanagement of business due to lack of appropriate skills in business

GENDER AND OCCUPATIONS

-the focus is to study the employment structure in different organizations based on whether one
is male or female
-in Africa and in Zimbabwe to be specific, men usually get better employment than women
especially before independence
-this is due to patriarchy
-Patriarchy is a system where males are more dominant than females
-women usually do housework

Def: Housework refers to duties done at home whether paid or unpaid

-include –cooking
-gardening
-washing
-fetching firewood
-ironing
-nursing babies
-cleaning the yard
-women’s jobs are usually undermined (looked down upon)
-most women are under domestic work due to factors like :
1. they are socialized to be indoors
2 religion teaches them not to participate in public
3. nature- women bear and nurse children for example they do breast feeding
4. women are weak and cannot do heavy work as compared to men eg working underground in
mines
5. fear or lack of confidence in themselves due to socialization

-most industries employ males as compared to females

-where there is equality in employment, men are found in most important positions eg
Headmasters, Ministers, Managers and Inspectors
-this is called gender discrimination in employment
-Def: Gender discrimination is the unequal treatment of one sex at the expense of the other
-women are discriminated in terms of employment mainly because of culture
-men and women doing the same job can get different salaries with women being underpaid
-in industries, women do the menial and least paid jobs such as
1. sweeping
2. cleaning
3. feeding patients in hospitals
4. office orderly
5. cooking (breakfast and lunch)

GOVERNMENT INTERVENTION

-the government has improved the condition of women

-the government is trying to promote gender equality in occupations
-the government has enacted:
1. The Equal Employment Act- this ensures that men and women must be equally considered in
all forms of employment for example when they apply for jobs
2. Equal Pay Act- ensures that men and women doing the same type of work must be equally
paid
3. Maternity Leave- females are now allowed to go for maternity leave while receiving their
normal salary

METHODS OF GENDER EMPOWERMENT

-Educating people ie both men and women

-emancipation of women through development projects like Cross Border Trading, Command
Agriculture and Poultry
-Awareness campaigns
-Use of legislations such as Equal Pay Act

CONFLICT MANAGEMENT AT WORKPLACE

- Conflicts are disagreements mainly between employers and employees (workers)or between
employees themselves or departments
-conflicts include quarreling and fighting

CAUSES OF CONFLICTS/ SOURCES OF CONFLICTS

1. Leadership style- employer can use autocracy that is excluding workers in decision making
2. Low wages or low salaries for the employees can cause conflicts also
3. Poor working conditions for example long working hours, lack of safety at work eg use of
dangerous machines
4. Abuse of office- is when employers exploit the employees eg male managers asking for sexual
favours from female employees
5. Unequal distribution of resources between departments eg vehicles. Organizations have
departments such as Production, Marketing, Quality Control, Human Resources etc
6. Incompatible personality- some personalities do not match at workplaces and this can create
conflicts
6. Poor communication for example by the supervisor to the employees (workers)
7. Change in organizations - some workers who cannot adapt to change can find it difficult to
adjust to new job requirements thereby causing conflicts

HOW TO SOLVE WORK RELATED CONFLICTS

-Training in conflict management

-equitable distribution of resources at work across departments
-Arbitration - finding a third party to solve conflicts such as Workers’ Unions
-Educating workers so that they can prevent conflicts and must be able to do conflict resolution
-Actively involving workers in decision making on anything that affect them (Use of Democracy
at work)
-Collaboration – taking ideas from different employees and use them for effective operation of
the work

WORKERS’ UNIONS / TRADE UNIONS

-Def: These are organizations with an objective of protecting the interests of workers
(employees) negotiating their problems with employers
-Examples include
1. Zimbabwe Teachers Association (ZIMTA)
2. Progressive Teachers Union of Zimbabwe (PTUZ)
3. Zimbabwe Commercial Farmers Union (ZFCU)
4. Food and Allied Workers Union of Zimbabwe (FAWUZ)

FUNCTIONS

-negotiating with the employers on the behalf of the workers for example negotiating on issues
of salary increases and working conditions
-act as a channel of communication between employers and employees
-helping individual members on work related issues eg suspensions
-help employees with informed decision making skills
-provide legal aid in case of disputes with the employer
-Arbitration – acting as third party in resolving disputes between employer and employee

Problems faced
-limited membership causes limited capital for growth
-divide and rule tactic by the employer disrupts achievements
-poor management skills affect workers negatively
-poor legal representation can lead workers to lose their jobs
-disunity among members causes failure of the workers’ unions

STRIKE

Def: Is a temporary stoppage of work by employees to express work related grievances.

-For example the one by Zimbabwean Teachers in January 2019
-Strike is sometimes called job action

Causes of Strike

-poor salaries
-long working hours
-wild salary deductions
-lack of leave days
-lack of off days
-abuse of office eg using harsh words by the employer to workers

Solutions

-motivate workers through free housing and transport benefits

-include them in decision making on anything which affect their lives at work
-give them allowances
-increase salary for them
-improve working conditions
-give workers leave and off days
-use of legislations to prevent strikes for example Section 65:3 of the Zimbabwean Constitution
has a provision to control strikes

UNEMPLOYMENT

Def: Is a condition of people who are eligible to work but are without jobs.
-Unemployment rate refers to the percentage of those not working but officially defined as
looking for work.
-Underemployment means being employed at a skill level below the expected one based on
one’s education level and expertise

Causes of unemployment

-lack of the required skills

-disability
-Gender-usually women are left out
-employee values- some people are very selective when it comes to employment
-rapid population growth
-high rate of technological advancements eg technology causes automation
-corruption – where the poor cannot do anything to acquire jobs
-incompatible curriculum with the demands of the job market
-industrial closure due to inflation and mismanagement by the administrators

Effects of unemployment

-low living standards

-increase in crime rate like theft and prostitution
-family breakdown
-causes poverty that is deprivation from basic need like decent shelter
-increases HIV and AIDS
-causes drug abuse especially by the youths (juvenile delinquency)
-causes brain drain which negatively affect national development

Solutions to unemployment

-land redistribution to the citizens

-use of command agriculture
-government must support entrepreneurs
-training in entrepreneurship
-making the curriculum compatible with the demands of job market
-Government to provide Unemployment Benefits for example this led to the formation of the
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