The rise of informal entrepreneurs in Zimbabwe: evidence of economic growth or failure of economic policies?

Esinath Ndiweni, Hendrika Ariaantje Lena Verhoeven

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Abstract

This paper investigates whether the rise in the number of informal
entrepreneurs in Zimbabwe is linked to economic growth or failed government
policies. It argues that for the past 30 years informal economic activities have
proliferated at an unprecedented rate as a response to socio-political and
economic challenges and thus became a default position, for many to escape
debilitating poverty. It draws from the literature, the experiences of one of the
authors who is a Zimbabwean and views of interviewees. The major finding
is that the contribution of informal traders in Zimbabwe cannot result in
sustainable development nor can it significantly increase economic growth.
The paper concludes that the rise in informal sector business is rather indicative
of a lack of accountability for the plunder of resources and its attended
consequences and failure of government economic policies. Finally, it proposes
the adoption of social entrepreneurship approaches to address social problems.
Original languageEnglish
Pages (from-to)260-276
JournalAfrican Journal of Accounting, Auditing and Finance
Volume2
Issue number3
DOIs
Publication statusPublished - 1 Jan 2013

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