Chronicle Editor
Natasha Chamba, Business Reporter
THE Confederation of Zimbabwe Industries (CZI) has advised companies to integrate corporate entrepreneurship as a strategy to achieve organic growth and securing long–term business sustainability.
CZI president Mr Sifelani Jabangwe said corporate entrepreneurship, a process used to develop new businesses, products, services or processes inside of an existing organisation, was a viable model to creating value and generating new revenue growth through entrepreneurial thought and action.
He said corporates that have embraced the approach have been able to set desirable contexts for innovation and growth within their operations.
“Corporate entrepreneurship sets the context for innovation and growth. It provides a systems view of the resources, processes and environment that are needed to support, motivate and engage the organisation in entrepreneurial thinking and action,” said Mr Jabangwe.
He added that corporate entrepreneurship helps companies to diversify and was key for the development of the economy in the context of an upper middle-income vision by 2030.
Mr Jabangwe said Econet Wireless Zimbabwe was a good example of a company that thrives on embracing corporate entrepreneurship.
The Econet group recently approved the demerger and independent listing of its SmarTech arm, Cassava Smartech Zimbabwe Limited (CSZL) and runs several viable subsidiary businesses.
Mr Jabangwe said more jobs will be created following the creation of new companies by Econet.
He said corporate entrepreneurship was also beneficial in terms of removing monopolisation in the market. As such, organisations with strong entrepreneurial orientations statistically perform better and achieve higher levels of productivity, innovation and financial returns, said Mr Jabangwe.
“Corporate entrepreneurship is, however, a risky proposition. New ventures set up by existing companies face innumerable barriers. Emerging businesses seldom mesh smoothly with well-established systems, processes, and cultures. Yet success requires a blend of old and new organisational traits, a subtle mix of characteristics achieved through what we call balancing acts. Unless companies keep those opposing forces in equilibrium, emerging businesses will flounder,” he said.
— @queentauruszw
derick.khumalo