An Analysis of the Impact of Survival Entrepreneurship on Economic Development: A Case Study of the Informal Sector in Zimbabwe

High unemployment in Zimbabwe has led to the rise of survivalist entrepreneurs. This research examines the impact of survival entrepreneurs on economic development in Zimbabwe. A Dynamic Linear Regression Model is employed to analyse the relationship between self-employment data, serving as a proxy for survivalist entrepreneurship, and GDP per capita, which is regarded as a core measure of economic development. The findings reveal that self-employment has a statistically insignificant relationship with GDP per capita, despite the growing significance of the informal sector within Zimbabwe’s economy. While survivalist entrepreneurship contributes positively by creating jobs and supporting livelihoods, its overall influence on GDP per capita growth remains marginal. To boost the productivity of survivalist entrepreneurs and promote their participation in formal economic activities, the government should streamline business registration processes, reducing bureaucratic barriers and offering tax incentives to encourage formalization. Furthermore, collaboration with private sector entities is essential to provide mentorship, funding, and networking opportunities. Additionally, enacting laws to safeguard the rights of informal entrepreneurs, while extending social benefits, can ensure their gradual integration into the formal economy, unlocking their full potential for extensive economic growth.