Asia Abdul Simwaya Income Generating Activities in Zambia. A case study of Entrepreneurs and

143 Pages·2017·4.61 MB·English

Asia Abdul Simwaya

Income Generating Activities in Zambia.
A case study of Entrepreneurs and SMEs in Masala Market, Ndola.

Master’s thesis in Development Studies – Specialising in Geography
Trondheim, November 2017
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ABSTRACT
Due to the introduction of globalisation and free markets, coupled up with structural
adjustment programmes in Zambia, markets have produced several opportunities and threats
for entrepreneurs and small and medium scale enterprises. Whilst people lost their
employment due to structural adjustments, it was up to them to find ways and means of
sustaining their well-being, hence the engagement in entrepreneurship and small and medium
scale enterprises.

The thesis aimed at gaining knowledge about entrepreneurship and small and medium scale
enterprises, dwelling on the different types of activities that both men and women engage in.
Various qualitative methods such as semi-structured interviews, focus group discussions,
observation and secondary sources were used to collect data. The data was further analysed
qualitatively, and conclusions were reached upon. This research had a total number of 14
participants, divided into 7 men and 7 women involved in entrepreneurship and small and
medium scale enterprises.

The study showed that people mainly engaged in entrepreneurship due to lack of employment
opportunities. In addition, due to structural adjustment programmes, many parents lost their
jobs, hence affecting the children’s welfare by them being kicked out of schools due to non-
payment of school fees. This led many to either stop school or not gain any education or
skills training, therefore, the only thing left was for them to be part of the informal sector.

The study realised that engaging in entrepreneurship and small and medium scale enterprise
was a way to help business owners sustain their livelihoods and the family’s.
Entrepreneurship and small and medium scale enterprise was seen to be a poverty alleviation
tool.

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DEDICATION

This work is dedicated to all my hardworking participants that took part in this research. I
also dedicate this to my husband and entire family for the immense love and support I
received during this study.

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TABLE OF CONTENTS
DEDICATION
  iii

ABSTRACT
  iii

ACKNOWLEDGEMENTS
  xi

TABLE
 OF
 CONTENTS
  vii

LIST OF FIGURES
  xi

ABBREVIATIONS
  xv

1.0 INTRODUCTION
  1

1.1 Problem statement
  3

1.2 Motivation for the research
  4

1.3 Relevance of the study
  4

1.4 Aim for research
  5

1.5 Specific objectives
  5

1.6 Research questions
  5

1.7 Outline of the study
  6

2.0 SOCIO-ECONOMY AND DEMOGRAPHY OF THE RESEARCH CONTEXT
  7

2.1 Geographical Location and Demography of Zambia
  7

2.2 Geographical Map of Zambia
  8

2.3 Description of study area
  8

2.4 Field Site
  9

2.5 Political Status
  9

2.6 Economic Status
  10

2.7 Entrepreneurship in Zambia
  13

2.8 Importance of entrepreneurship and SMEs
  14

2.9 Challenges Faced by Entrepreneurs and SMEs in Zambia
  16

2.10 Other related studies
  17

2.11 Summary
  19

3.0 METHODOLOGY CHAPTER
  21

3.1 Case study approach
  21

3.2 Researching from a gendered perspective
  22

3.3 Field sites
  22

3.4 Sampling
  24

3.5 Research Participants
  25

3.6 Gaining access
  26

3.7 Methods of datan collection
  28

i.
  Observations
  28

ii.
  Interviews
  29

iii.
  Focus Group Discussions
  32

iv.
  Secondary Data
  34

3.8 Data handling
  35

3.9 Ethical considerations
  35

3.10 Informed concent
  36

3.11 Anonymity, confidentiality and privacy
  38

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3.12 Trustworthiness and validity
  39

3.13 Positionality and reflexivity
  40

3.14 Challenges faced in the field
  42

3.15 Summary
  45

4.0 THEORETICAL PERSPECTIVES AND CONCEPTS
  47

4.1 Understanding Entrepreneurship and SME’s
  47

4.1.1 Different characteristics of Entrepreneurship
  48

4.2 Entrepreneurship and SME’s
  48

4.3 Gender and Entrepreneurship
  51

4.4 Entrepreneurship and poverty
  54

4.5 Analytical approach
  56

4.6 Summary
  57

5.0 ANALYSIS AND DISCUSSION
  59

5.1 Why get involved in entrepreneurship/SME
  59

5.2 Lack of employment
  59

5.3 The role of Education
  63

5.4 To provide household needs
  66

5.5 Summary
  68

6.0 ENTRY IN TRADE
  71

6.1 Types of activities/trade
  71

6.2 Motivation\reason for choice of business
  73

i.
  Survival strategy
  73

ii.
  Lack of Formal paid employment
  74

iii.
  Desire for more profits/ returns
  74

iv.
  Mentorship
  74

v.
  Interaction and idea sharing
  76

6.3 Source of Funding
  76

6.4 Criteria of loan grants
  78

6.5 Characteristic Skills for entrepreneurs and SMEs
  79

6.6 Are there gender differences in the trades?
  81

6.7 Summary
  83

7.0: BEING AN ENTREPRENEUR
  85

7.1 Challenges faced by SMEs
  85

7.1.1 Chinese Traders
  85

7.2 Seasonal foods
  87

7.3 Transportation
  89

7.4 Access to funds
  90

7.5 Capital
  92

7.6 Thefts and vandalism
  95

7.7 Summary
  95

8.0 SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUDING REMARKS.

  97

8.1 Empirical findings
  97

8.1 Recommendations
  98

8.3 Concluding remarks
  99

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REFERENCES
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APPENDIX A: Consent Form
  111

APPENDIX B: Norwegian Centre for Research Data (NSD) Ethics
  112

APPENDIX C: Research Participants (pseudonyms)
  116

APPENDIX D: Interview guide
  117

APPENDIX E: Pictures from fieldwork: August – October 2016
  119

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