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Entrepreunership And Micro-Finance In Extreme Poverty Circumstances — Challenges And Prospects: The Case Of Zimbabwe

Author

Listed:
  • TENDAI MURISA

    (TrustAfrica, Lot 87, Sacre Coeur 3, Dakar, Senegal)

  • TENDAI CHIKWECHE

    (University of Western Sydney, School of Business, Locked Bag 1797, Penrith South DC, NSW, 1797, Australia)

Abstract

Using an on-going real case study of a micro-finance project modeled on financial inclusion in Zimbabwe, a country with high levels of poverty, we provide real time insights on entrepreneurship and micro-finance in this environment focusing on the nature of challenges faced by entrepreneurs and potential solutions to these challenges. While acknowledging this is a research stream that has dominated micro-finance, our study extends the scope of research beyond Asia and Latin America to include insights from an African market where micro-finance has recorded significant growth yet very few stories are told about these experiences. Our case study provides an opportunity to reflect on emerging and previously held insights in real time using a project that is still in the process of dealing with these challenges. We then go onto illustrate how our inclusive approach to serving the unbanked segment in Zimbabwe has potential for broader contribution to poverty reduction among citizens who are exposed to extreme conditions of poverty. Our paper also outlines an alternative approach of solutions to the challenges faced by micro-finance entrepreneurs, which could be applied by entrepreneurs in environments facing similar challenges.

Suggested Citation

  • Tendai Murisa & Tendai Chikweche, 2013. "Entrepreunership And Micro-Finance In Extreme Poverty Circumstances — Challenges And Prospects: The Case Of Zimbabwe," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1-30.
    • Handle: RePEc:wsi:jdexxx:v:18:y:2013:i:01:n:s1084946713500015
    DOI: 10.1142/S1084946713500015
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    References listed on IDEAS

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    1. Sarah Bracking & Lloyd Sachikonye, 2006. "Remittances, poverty reduction and the informalisation of household wellbeing in Zimbabwe," Economics Series Working Papers GPRG-WPS-045, University of Oxford, Department of Economics.
    2. Elisabeth Rhyne & María Otero, 2007. "Microfinance Matures: Opportunities, Risks, and Obstacles for an Emerging Global Industry," Innovations: Technology, Governance, Globalization, MIT Press, vol. 2(1-2), pages 91-114, April.
    3. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "Governance Matters VI: Aggregate and Individual Governance Indicators, 1996-2006," Policy Research Working Paper Series 4280, The World Bank.
    4. Simon Johnson & Jonathan D Ostry & Arvind Subramanian, 2010. "Prospects for Sustained Growth in Africa: Benchmarking the Constraints," IMF Staff Papers, Palgrave Macmillan, vol. 57(1), pages 119-171, April.
    5. Mr. Markus Haacker & Mr. Gonzalo Salinas, 2006. "HIV/AIDS: The Impact on Poverty and Inequality," IMF Working Papers 2006/126, International Monetary Fund.
    6. Thankom Arun & David Hulme, 2008. "Microfinance – A Way Forward," Global Development Institute Working Paper Series 5408, GDI, The University of Manchester.
    7. Benno J. Ndulu, 2007. "Challenges of African Growth : Opportunities, Constraints, and Strategic Directions," World Bank Publications - Books, The World Bank Group, number 6656.
    8. Ersado, Lire, 2006. "Income diversification in Zimbabwe : welfare implications from urban and rural areas," Policy Research Working Paper Series 3964, The World Bank.
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    Cited by:

    1. Martijn A. Boermans & Daan Willebrands, 2018. "Financial Constraints Matter: Empirical Evidence On Borrowing Behavior, Microfinance And Firm Productivity," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-24, June.

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