Informal Entrepreneurship as a Poverty Alleviation Mechanism in Zimbabwe: Challenges and Prospects

Abstract

Informal entrepreneurship is a source of livelihood which provides employment and income to poor households in Chitungwiza Municipality in Zimbabwe. The dominant entrepreneurial activities are street vending, foreign currency exchange, urban farming, and home industries and cross border trading. The research approach that underpins this study is a triangulation of qualitative and quantitative. A semi-structured questionnaire and an interview guide were the instruments used in collecting data. The study sample was made up of 156 respondents that comprised informal entrepreneurs, social workers, municipal officials and community development practitioners from Chitungwiza Municipality. The findings revealed that few informal entrepreneurs are benefitting whereas the majority are failing to improve household income due to stiff competition, limited funding, poor infrastructure and harsh municipal policies. The paper recommends that the government of Zimbabwe should build infrastructure (shelters) for the informal entrepreneurs in their designated area of work.