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

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  • Nothando Tshuma

    (National University of Science and Technology)

  • Vuyisile Ndebele

    (National University of Science and Technology)

  • Tsepeso Setoboli

    (National University of Science and Technology)

  • Emmanuel Sibanda

    (National University of Science and Technology)

Abstract

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.

Suggested Citation

  • Nothando Tshuma & Vuyisile Ndebele & Tsepeso Setoboli & Emmanuel Sibanda, 2025. "An Analysis of the Impact of Survival Entrepreneurship on Economic Development: A Case Study of the Informal Sector in Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(15), pages 405-414, April.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:15:p:405-414
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