The evolution of urban entrepreneurship in Zambia

Abstract

Zambia is a former British colony. It gained independence in 1964 and now ranks as one of the middle lower income countries even though it has dropped from a higher ranking at independence. This history has had a bearing on entrepreneurship development in the country. This chapter discusses urban entrepreneurship in Sub-Saharan Africa (SSA), in general, and Zambia in particular. The chapter further elaborates the social-political factors that have shaped the entrepreneurial landscape of Zambia, and the status quo of entrepreneurial activities in four main urban and large cities in the country. The last section provides an empirical showcase of factors influencing the location decision of entrepreneurs in one of the urban cities, Kitwe. The lessons learned from this chapter are: first, historical events in the urban, institutional environment shape entrepreneurial activities of the present day; second, the four main urban areas in Zambia have developed distinctive types of entrepreneurial activities; and third, besides institutional factors, entrepreneurs make deliberate, personal choices for establishing firms in certain urban locations, primarily driven by the attitude towards avoiding tax, perceived levels of institutional corruption, size of the informal business activities and the overall satisfaction and comfort of the entrepreneur in having the business in the residential areas where they reside.