adminON 1 May workers from different sectors and industries converged at various venues in their respective cities, towns and growth points to celebrate Workers Day despite a myriad of challenges confronting labour.
The challenges are not only unique to Zimbabwe but are common to a number of countries in the developing world, whose economies continue to suffer stunted growth for various reasons.
Most developing countries are grappling with high unemployment rates as opportunities on the job market continue to dwindle at the same rate as closure of companies.
Yearly, tertiary institutions continue to churn out thousands of graduates, most of whom may end up roaming the streets jobless, with some turning to the informal sector for employment.
It remains debatable whether working in the informal sector can or cannot be regarded as employment, but Zimbabwe could be a perfect case study of how the sector has been a vital cog of the economy, sustaining livelihoods.
Industry in Zimbabwe has been crippled as a result of the economic sanctions imposed on the country by the West and the negative and flatly false
images of the country portrayed to potential investors by media outlets hostile to the country.
Undercapitalitisation of local industry and lack of Foreign Direct Investment (FDI) are some of the challenges the country has had to contend with for more than a decade now.
These have also been given as the reasons for industry’s failure to grow.
Labour has been hardest hit by these challenges as many have been left jobless, some enduring paltry earnings while others have gone for months without being paid.
It has become more apparent with each passing year that Western investors, due to their misinformation, are reluctant to set up enterprises in the country and create employment in the process.
That being a fact, there is a need for the nation to self-introspect and look from within for alternative homegrown solutions to de-industrialisation and high unemployment rate among other problems haunting the economy.
Locals should thus be challenged to take up the space left by Western investors and set up enterprises that can sustain the economy and compete internationally.
Government has also made efforts to counter the biting unemployment, setting up a fund to help youths start their own businesses, but bureaucracy has seen a number of youths struggling to access the funds.
While Government makes efforts to create employment, citizens also have to take it upon themselves to resuscitate industry by setting up enterprises.
It is critical to look at how developed countries have managed to create and promote investment by indigenous people, investment which has sustained their economies and micro economies of citizens. We can take a leaf from their book.
Various strategies and concepts have been explored by other countries in efforts to create sustainable economies that are run by indigenous investors.
One such concept that has been used in other countries and has proved useful in setting up successful business ventures that help reduce unemployment is the Business and Technology Incubation.
A basic definition of business and technology incubation is that it is the provision of necessary support services to a business idea or technology venture to enable it to realise its potential. The support services range from provision of office space or research facilities, administration, accounting, marketing and finance to projects in incubation. Once a project is accepted into an incubation programme, the incubator takes on the responsibilities of nurturing the project to sustainability.
Business and technology incubation might be a relatively new concept in Zimbabwe but it has been successfully used in the starting up of business enterprises in developed countries.
The United States of America has over 1 000 incubators whose annual turnover spills into billions of dollars. China, Japan, South Korea, India, Brazil are some of the countries that have successful incubation programmes.
Africa, Ghana, Nigeria, Kenya, South Africa and Uganda are just a few countries that have incubation programmes.
This concept came about after realisation that most brilliant business ideas were struggling to take off while some crash-land soon after take off owing to lack of financial and technical support.
Global Appeal for Accelerated Youth Empowerment and Development, (GAAYED) chief executive officer Mr Glorious Makumbe, whose organisation has started a business and technology incubation project in Gweru believes that initiative is the most apt strategy for youth empowerment and employment creation.
“Most businesses crumble because of lack of support. A number of people come up with brilliant business ideas which may never come to fruition owing to a number of factors, chief among them lack of capital. Some business units fold because of lack of technical expertise. Business and Technology Incubation offers support services to a business idea to enable it to realise its full potential. We offer support services that range from provision of office space or research facilities, administration, accounting, marketing and finance to projects while they are in incubation until they grow into fully fledged enterprises,” he said.
Mr Trust Chikohora, a Gweru-based economic analyst, who is also secretary general of the Comesa Business Council and a past president of the Zimbabwe National Chamber of Commerce put his weight behind business and technology incubation saying the concept could be useful in Zimbabwe.
“I think it is a noble concept. It has worked in other countries especially in the developed world so I’m optimistic that it can also work here. I applaud the young guys who have come up with the initiative, it’s a great initiative,” he said.
His assertion was backed by Economics lecturer at the Midlands State University Mr Martin Charumbira who added that most start-up businesses in the country fold because of lack of necessary expertise on the part of the owners.
“Most start-up businesses fail or fold mainly because the owners lack requisite expertise. Business incubation could help fill that gap and assist most of such start-ups to thrive and grow big,” he said.
Mr Makumbe argues that financing youth projects without providing the necessary support infrastructure was a half-baked solution that has limited finance.
“Business and Technology incubation helps to reduce the default rate of beneficiaries by providing requisite accounting, administration and financial management for projects in incubation. Current funding is limited as most funds for youth give loans of up to $5 000 which is inadequate for youth projects that require more levels of capitalisation.
“It would be a nightmare in the current scenario for a young person to have a project that requires over $100 000. Where do they knock? The banks would require collateral which youths do not have. So where is the hope for our enterprising young people with dreams of starting businesses that are relatively large,” he said.
Research on business and technology incubation shows that it has been able to address such challenges. Many incubators assist incubatees within their programmes access alternative sources of financing that include equity partners and venture capitalists. Incubators will assist the start-up companies access the favourable source of finance that enhances their viability.
Furthermore, incubators assist start-up companies to settle their tax requirements and create a banking history. The banking history then places them in a favourable position to access new funding. Incubators also provide legal support and assist in new market access.
Youths often face challenges of office space for their projects, constraints on communication and administrative capacity during the start-up phase therefore, business and technology incubation helps in addressing such challenges associated with start-up.
There is therefore massive room to integrate business and technology incubation in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset).
Bongani Ndlovu