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Enterprise development in Zambia: reflections on the missing middle

Author

Listed:
  • Christine Phillips

    (University of Reading Business School, UK)

  • Seema Bhatia-Panthaki

    (University of Reading Business School, UK)

Abstract

This paper is the result of the analysis of 200 interviews with Zambian enterprise owners during the summer of 2006. It examines the reasons for the lack of growth of micro and small firms and the resulting 'missing middle' in Zambia. The study finds that most enterprise owners are risk takers, have bounded rationality in terms of their understanding of market structure, conduct and performance and rely on inappropriate channels for their information. A second group of enterprise owners who are less risk preferring, and do not have aspirations in terms of firm growth is also identified. Most enterprises in these two groups do not operate on a growth trajectory. Finally there is a very small group of enterprise owners who are truly entrepreneurial. Policy recommendations address issues concerning the need for differentiated targeting to support firm sustainability and growth. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Christine Phillips & Seema Bhatia-Panthaki, 2007. "Enterprise development in Zambia: reflections on the missing middle," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(6), pages 793-804.
    • Handle: RePEc:wly:jintdv:v:19:y:2007:i:6:p:793-804
    DOI: 10.1002/jid.1402
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    References listed on IDEAS

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    5. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12426, December.
    6. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafcharnps & Bernard Gauthier & Jan Willern Gunning & Jean Habarurema & Anders Isaksson & Abena Oduro & Remco Oostendorp & Cathy Pattillo & Mans So, 1999. "Exports of African manufactures: macro policy and firm behaviour," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(1), pages 53-71.
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    Cited by:

    1. Girum Abebe, 2015. "State-inducement Versus Self-initiation: A Comparative Study of Micro and Small Enterprises in Ethiopia," Working Papers 013, Policy Studies Institute.
    2. D'Espallier, Bert & Guérin, Isabelle & Mersland, Roy, 2011. "Women and Repayment in Microfinance: A Global Analysis," World Development, Elsevier, vol. 39(5), pages 758-772, May.
    3. Chmelíková, Gabriela & Krauss, Annette & Dvouletý, Ondřej, 2019. "Performance of microfinance institutions in Europe—Does social capital matter?," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    4. Oscar Chakabva & Robertson Tengeh & Job Dubihlela, 2021. "Factors Inhibiting Effective Risk Management in Emerging Market SMEs," JRFM, MDPI, vol. 14(6), pages 1-12, May.
    5. Osborn, Tom L, 2019. "Africa joins the growth capital revolution: Examining the growth of venture capital in the continent," AfricArxiv 78smp, Center for Open Science.
    6. Seven Ağır, 2023. "The ‘Missing Middle’: A Historical-Institutional Perspective on the Stagnation of Small and Medium Enterprises in Turkey," ERC Working Papers 2305, ERC - Economic Research Center, Middle East Technical University, revised Nov 2023.

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