By Michelle Munatswa
In recent years, the support of entrepreneurship as a solution to numerous economic and social challenges faced by Zimbabwe has been receiving significant attention by the government, policy makers and the academic fraternity.
Entrepreneurship is being recognised by government officials throughout the world not only as “a key mechanism for enhancing economic development, particularly in regions where entrepreneurial activity was once vibrant and is now lagging”, but also as “a good solution because it provides a relatively non-controversial way to increase the proverbial pie, creating jobs and enhancing per capita income growth” (Shane, 2005, p. 1).
Therefore, empowering people to take entrepreneurial initiatives and helping them to build formidable businesses has become one of the government`s mandates in enhancing the economy.
This is so because entrepreneurship is one of the most effective ways of reducing poverty in a country and putting people’s lives into their own hands.
However, the introduction of innovation and new products and services by entrepreneurs thrives in an environment where the government creates 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.
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 as there 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 initiated 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.