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Entrepreneurship and leadership
Thandazile Mpofu
October 02, 2007

http://www.cipe.org/programs/women/essayresults.php

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This essay was submitted for the Center for International Private Enterprise 2007 essay competition, "engaging youth in reform." Mpofu received an Honourable Mention in the Entrepreneurship and Leadership category for this essay.

Introduction

Zimbabwe is my home in the southern part of Africa, whose name means 'Houses of Stone.' To many this title may not seem an apt description for a country that is in serious economic and social decline - an inflation rate of 3371.9% as at 30 April 2007; the HIV/AIDS pandemic affects 18% - 20% of the population and results in approximately 3000 deaths per week; about 80% of the population is living below the poverty line. However, the sturdy resilience and fortitude with which my countrymen meet these difficulties on a daily basis makes them, in my opinion, true Houses of Stone.

The Self-Employment Solution

As a result of the country's hardships, many Zimbabweans have opted to migrate to other lands seeking greener pastures. However, there are many still who remain. The formal sector has absorbed into employment only a small number of these and as such, Zimbabwe has an unemployment rate of 80 %. The need to survive has forced numerous citizens, of all ages, to seek self employment.

Very commonly commodity broking is the chosen line of business. In many instances the brokers take advantage of the discrepancies that exist in the economy. Our Government often intervenes in the market using price controls to counter the effects of rising inflation. The result is the emergence of a parallel/black market and in the case of foreign currency, this has developed into a dominant and thriving force. Commodity brokers commit financial resources to source and purchase goods in short supply. Taking advantage of the high market demand, the goods are then resold for a premium. Whilst statistics are not available, a significant number of citizens have become rich in a short space of time due to these commodity broking activities.

Of course, not all commodity broking operations are outside the parameters of the law. Cross border trading is another form of business that many Zimbabweans have undertaken. Typically, the trader will sell goods that are unavailable in the country or goods that can be purchased more cheaply from other countries.

Until recently, cross border trading had synergies with flea market enterprises, being a key supply of the goods sold there. The informal nature of flea markets meant that goods could be sold much cheaper than in conventional shops. This, in addition to providing imported and therefore more attractive commodities, made flea markets popular amongst Zimbabwean shoppers. Following the Government's major exercise to clear slum areas across the country (known as Operation Murambatsvina or Operation Restore Order) in 2005, flea markets exist to a lesser extent. However, they continue to provide viable livelihoods to some people.

Youth - Pillars of Entrepreneurship

Youth unemployment is one of the most formidable problems facing the country and the pattern of unemployment by age reveals that young Zimbabweans have the highest unemployment rates. One can therefore conclude that the youth makeup the majority of the people in the country's self-employed or informal sector. The youth drive and maintain entrepreneurship. Through resilience and the determination to survive, they have developed a keen knowledge of the environment, discovered opportunities and exploited these successfully.

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