Even though small businesses in Zambia may not generate as much money as large establishments, they are a very important component of and a major provider to the strength of the Zambian local economy .This paper discusses the roles of small businesses in the economic development of Zambia. It aims to shed light on some of the challenges faced by most Zambian entrepreneurs as well as explain how entrepreneurs can develop for themselves a competitive advantage. It will further go on to identify and explain some entrepreneurial characteristics of our local entrepreneurs, while finally shedding light on how business opportunities are created.
Role of Small Businesses in ...view middle of the document...
Entrepreneurs may also face challenges with exploiting technologies as well as the inability to take advantage of the policies and programs for SME’s that are set up around the country, these would include Zambia Development Agency, The Zambian Entrepreneur and Citizen Economic Empowerment Commission.
Developing a Competitive Advantage
As defined by Investopedia, a competitive advantage is “An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition”. (Investopedia, n.d.) With this definition we will be able to understand just how a small business can develop for itself a competitive advantage. The two core types of competitive advantage strategies that can be used are comparatibe advantage and differential advantage. Comparative advantage also known as cost advantage is the ability a business has to produce goods or services at a cost lower than its compeditors or to yield a larger margin on sales. A differential advantage is seen when the products or services of a business differ from its compeditors. In order to have a competitive advantage, a small business must create for itself an edge over its competitors as well as have the ability to generate greater value for the firm and its stakeholders .
Characteristics of the Zambian Entrepreneur
Andrew Patricio and Stefanie Neyland who are Small Business Experts at BizLaunch.com stated that “Being an entrepreneur requires much more than just big ideas. A true entrepreneur is a rare breed; it’s someone who possesses a unique cocktail of traits, skills and characteristics that enable them to beat the odds and go after their dreams full throttle” .(Patricio and Neyland, 2013). This is the attitude that most if not all Zambian entreprenuers possess. Some characteristics that these entrepreneurs posses are as follows, Being goal orriented which requires them to set goals with strategic planning, they are also very commited to their business seeing failure as an chance to future triumph . Furthurmore they are opportunity oriented and focus their time on opportunities and not assets, they is also a very big element of confidence and optimisim that...