.

Group presentation
Assignment 3
Program: BSBE
Level:1.2
Group members
Name Surname Reg number
Amandla Chigwanda C23157386J
Chloe M Tsvakanyi C23155616E
Prisca Maritina C23154823B
Trish Zvomuya C23154530I
Simon Musiiwa C23155254P
Tanatswa Mavurumutse C23156006Q
Blessing Murambadoro C23154490S
Sandra T Funyura C23156240V
Getrude Zimbizi C23157240L
Courage Hove C23157655Y
Tutorial question 12
• Zimbabwean entrepreneurs are not a common site on the list of the
Zimbabwean Stock Exchange. Detail why the situation is like this.
Definition of key terms

• An entrepreneur is an individual who takes on the risk of starting a

new business venture, producing and serving the market.
Entrepreneurs are known for their innovative ideas, willingness to
take risks, and ability to identify opportunities in the market.
• A stock exchange is a centralized marketplace where securities, such
as stocks, bonds, and commodities, are bought and sold. It provides a
platform for companies to raise capital by issuing shares to investors
and for investors to buy and sell these securities.
Introduction
• The Zimbabwean Stock Exchange is a key indicator of the country’s economic health and
development, providing a platform for companies to raise capital and investors to trade securities.
• However, it is notable that Zimbabwean entrepreneurs are not a common site on the list of
companies listed on the exchange. This raises questions about the reasons behind this
phenomenon and sheds light on the challenges faced by local entrepreneurs in accessing and
participating in the stock market.
• The limited presence of Zimbabwean entrepreneurs on the Zimbabwe Stock Exchange (ZSE) can
be attributed to several factors. Zimbabwean entrepreneurs are not commonly seen on the list of
the Zimbabwean Stock Exchange due to several factors that contribute to this situation.
 Economic stability
• The challenging economic environment in Zimbabwe is characterized by hyperinflation, currency
instability and political uncertainty among other factors.
• These conditions create a high level of risk and uncertainty for entrepreneurs looking to list their
businesses on the stock exchange. These factors create a challenging environment for
entrepreneurs looking to start or grow their businesses.
• With a volatile currency and high inflation rates, borrowing money becomes expensive and risky.
The economic environment in Zimbabwe poses significant challenges for entrepreneurs,
impacting their access to funding, growth opportunities, and ability to attract investment.
• The absence of Zimbabwean entrepreneurs from the common list of companies on the stock
exchange underscores the need for structural reforms and stability in order to create a more
conducive environment for entrepreneurship and business growth.
Lack of finance
• The lack of access to capital and financing options further hinders entrepreneurs from meeting
the stringent listing requirements of the stock exchange and expansion of their businesses.
• Lack of finance and capital significantly impact Zimbabwean entrepreneurs, leading to their
absence from the list of companies listed on the Zimbabwe Stock Exchange (ZSE).
• This lack of financial resources limits their capacity to invest in new technologies, expand
operations, or even survive during economic downturns. As a result, many Zimbabwean
entrepreneurs struggle to compete with larger, more established companies that have better
access to funding.
• The lack of finance and capital severely hinders the growth and success of Zimbabwean
entrepreneurs, preventing them from scaling their businesses and ultimately impacting their
ability to list on the ZSE.
Limited number of viable business opportunities
• The limited number of viable investment opportunities in Zimbabwe also plays a role in the
absence of Zimbabwean entrepreneurs on the stock exchange. Many entrepreneurs may choose
to invest their resources in other sectors or countries where there are more stable economic
conditions and better growth prospects.
• The limited number of viable investment opportunities in Zimbabwe can have a significant
impact on Zimbabwean entrepreneurs, as they may struggle to find suitable avenues for
investment and growth. When there are few viable options available, entrepreneurs may face
challenges in accessing capital, expanding their businesses, and achieving sustainable growth.
This lack of investment opportunities can hinder economic development and innovation within
the country.
• The scarcity of viable investment opportunities in Zimbabwe poses significant challenges for local
entrepreneurs, limiting their access to capital and hindering their ability to grow and thrive in a
competitive business environment.
Cultural factors
• Cultural factors may influence the reluctance of Zimbabwean entrepreneurs to list their
businesses on the stock exchange. In some cases, there may be a preference for maintaining
control and ownership of their businesses rather than diluting ownership through public listing.
There may be a lack of awareness or understanding among entrepreneurs about the benefits of
listing on the stock exchange and how it can help them access capital, enhance credibility, and
facilitate growth. Cultural factors play a significant role in shaping the entrepreneurial landscape
in Zimbabwe. One key cultural factor that affects Zimbabwean entrepreneurs is the traditional
emphasis on job security and stability.
• In Zimbabwean society, there is often a preference for formal employment over entrepreneurship
due to the perceived risks associated with starting and running a business. This cultural mind-set
can discourage individuals from pursuing entrepreneurial ventures and instead opt for more
conventional career paths. Cultural norms around family and community expectations can also
impact entrepreneurship in Zimbabwe. Entrepreneurs may face pressure to conform to societal
expectations regarding career choices, which may not always align with pursuing entrepreneurial
endeavours. This pressure to adhere to traditional roles and responsibilities within the family or
community can deter individuals from taking risks associated with entrepreneurship.
Corruption
• Corruption affects Zimbabwean entrepreneurs through bribery and extortion. Entrepreneurs
often face demands for bribes or kickbacks from government officials, making it difficult for them
to operate their businesses without engaging in corrupt practices themselves.
• This not only increases the cost of doing business but also creates a barrier to entry for new
entrepreneurs who may not have the resources to pay these bribes.
• Also corruption undermines the rule of law and erodes trust in institutions, making it harder for
entrepreneurs to enforce contracts and protect their investments.
• The lack of transparency and accountability resulting from corruption can deter both domestic
and foreign investors from engaging with Zimbabwean entrepreneurs, limiting their access to
capital and markets.
Limited regional integration
• Limited regional integration can have a significant impact on Zimbabwean entrepreneurs, as they
may face challenges in accessing new markets, resources, and opportunities.
• Regional integration refers to the process by which neighboring countries come together to
promote economic cooperation, trade, and development.
• When countries in a region integrate their economies, it can lead to increased trade flows,
investment opportunities and harmonization of policies and regulations. In the case of
Zimbabwean entrepreneurs, limited regional integration means that they may not be able to take
full advantage of the benefits that come with being part of a larger economic bloc.
• This can result in reduced access to markets beyond Zimbabwe’s borders, limited opportunities
for collaboration with businesses in neighboring countries, and a lack of exposure to new
technologies and innovations. As a result, Zimbabwean entrepreneurs may struggle to grow their
businesses and compete effectively in the global marketplace.
Conclusion
• A combination of economic instability, limited investment
opportunities, regulatory hurdles, corruption, limited regional
integration and cultural factors contributes to the low presence of
Zimbabwean entrepreneurs on the Zimbabwean Stock Exchange.
References
1.Mlambo, Alois S., et al. “Entrepreneurship in Africa: A Historical Perspective.” The
Oxford Handbook of Entrepreneurship in Africa, Oxford University Press. (Print)
2.Chigumira, Gibson C., et al. “Entrepreneurship Challenges in Developing Economies: A
Case Study of Zimbabwe.” Journal of Innovation & Entrepreneurship, vol. 8, no. 1, 2019.
(Web)
3.Muponda, Godfrey., et al. “The Impact of Hyperinflation on Entrepreneurial Activities:
Evidence from Zimbabwe.” International Journal of Business Management & Economic
Research, vol. 7, no. 4, 2016. (Web)
4.Nyamwanza, Tafadzwa., et al. “An Analysis of Factors Influencing Entrepreneurial
Growth in Zimbabwe.” Journal of Economics & Sustainable Development, vol. 10, no. 2,
2019. (Web)
5.Ncube, Mthuli., et al. “Economic Policy Challenges for Zimbabwe Post-2000.” The
Economy of Zimbabwe: Realities & Prospects, Palgrave Macmillan UK. (Print)