Entrepreneurship In Developing Countries In Africa: A Case For Malawi

• Type Assignment
• Downloads639
• Pages12
• Words3058

1. Introduction

Need help with assignment? Our expert writers provide top-quality assistance for all subjects, ensuring plagiarism-free work and timely delivery. Get professional guidance to boost your grades and academic success. Contact us today for reliable and affordable assignment help!

1.1 Problem Statement

Malawi is to be the poorest country in Africa and faces some potential challenges for entrepreneurship management due to a lack of innovation, unemployment, social issues, economic growth, regional developments, and market competition. The Malawi government takes several initiatives like young youth entrepreneur’s development programs, and entrepreneurship supportive programs by which the government tried to boost economic growth. However, there exists a potential missing link problem between the adoptions of those government-supportive programs for boosting the growth of entrepreneurs.

1.2 Research Objectives

• The main research objectives of this research proposal will be as follows.
• To identify the key challenges faced by entrepreneurs in Africa by focusing on Malwai regions.
• To compare the entrepreneurship challenges in rural and urban regions of Malawi for entrepreneurship management.
• To identify the government programs taken by the Malwai government in Africa to support entrepreneurial activities.
• To identify the missing link problems between the associated entrepreneurship challenges and the government initiatives.

1.3 Research Questions

• What will be the key challenges for entrepreneurs in Africa focused on Malawi regions?
• What will be the missing link problems between the associated entrepreneurship challenges and the government initiatives?

1.4 Research Hypothesis

• Null Hypothesis: In Africa, entrepreneurship in Malawi faced several business challenges for new entrepreneurship management.
• Alternative hypothesis: In Africa, entrepreneurship in Malawi does not face any business challenges for new entrepreneurship management.
• Null Hypothesis: The Government program on youth entrepreneurship management solves the missing link for entrepreneurship challenges in Malawi.
• Alternative Hypothesis: The Government program on youth entrepreneurship management does not solve the missing link for entrepreneurship challenges in Malawi.

1.5 Research rational

Entrepreneurship is considered the key pillar for enhancing the growth of an economy. Based on a 2019 survey in Malawi, it is found that there exist approximately 1.6 million enterprises of MSME in Malawi that also face several challenges. An increase in entrepreneurship helps to increase job creation by which the unemployment rate of the economy can be controlled. However, there exist almost 1.8 million employed people who also face challenges in developing entrepreneurship skills. In Malawi, there exist almost 74% of enterprises belong to micro-enterprise categories. Only, 23% of enterprises belong to small enterprises. It is found that only 3% of enterprises belong to medium enterprises. It is found that SMEs in Malawi regions face several challenges of lack of financial resources, inadequate level of business knowledge and skill, and inadequate financial resources, all are the key problems which are faced by entrepreneurs in Malawi. Therefore, analysis of this problem and key challenges will help to understand the required business solutions, the entrepreneurs in Malawi can easily overcome these types of problems. Most of the time it also found that there businesses or enterprises in Malawi fail due to a lack of capital access or interventions with the local markets. Therefore, this research study of entrepreneurship in Australia by considering the special case study of Malawi plays an important role. Therefore, the study of the identification of those key business challenges and link with those government initiatives for identification of the business problems and potential solutions to entrepreneurship challenges in Africa by considering the special focus on Malawi regions.

1.6 Research Significance

Entrepreneurship helps to extract and create economic values that consist of potential risks by which economic growth varies. The business operation costs are also higher in Malawi for which the entrepreneurship faced challenges for business operations. Market competition, higher level operational cost, lack of government intervention and support, and management of funds are the key challenges that create the major problems. Malawi is considered the poorest country which also faces a lot of structural and economic challenges. Therefore, due to lower levels of investments, and infrastructure problems, credit costs with higher levels are the key sources of higher employment rates for which the entrepreneurship in Malawi faced huge levels of business challenges. The increase in involvement of governments or NGOs will help the entrepreneurs in Malawi to fill the identified gap for challenges faced by entrepreneurship. However, it is shown that the Malawi government adopts some incubation programs like “Zantchito Entrepreneurship and Access to Finance Project” by collaborating with “United Development Program (UNDP)” to support the young entrepreneurs from the Malawi region.

2. Literature Review

The literature review section is essential in exploring the theoretical and empirical insights on how entrepreneurship management can foster economic growth, particularly in the context of youth entrepreneurship in Malawi. This section critically examines the existing studies that discuss the role of social networks, government initiatives, and entrepreneurship models in overcoming challenges faced by youth entrepreneurs in Malawi. It also highlights the importance of these factors in boosting the overall economic development of the region.

2.1 Introduction

The literature review section plays a vital role in developing the theoretical concepts regarding how entrepreneurship management will play an important role in boosting economic growth. This section will also provide a supportive analysis regarding the government initiatives in Malawi for boosting the youth entrepreneurship management challenges.

2.2 Empirical study

According to Kamninga et al. (2021), critically discussed the role of social networks in developing youth entrepreneurship mindsets. The author focused on the Malawi region to discuss the urban entrepreneurship challenges faced by the Malawi region. The author followed the primary research analysis and collected the dataset from a total of 1500 youth population in the Malawi region who belong to the 15-35 years group (Kamninga et al. 2021). The author highlights that social networks are highly associated with job creation levels. Demographic dividends are another major problem for which the rural Malawi regions face associated unemployment for entrepreneurship management. The author also highlights the role of the youth settlement in Malawi regions.

According to Kumdana, (2020), discussed the key role played by social networks in managing MSME entrepreneurship in different regions of Malawi. The author highlighted that the youth population of the Malawi region does not have any adequate training programs for entrepreneurship management or the credit access process. Therefore, the authors highlight the sections on how the entrepreneurs in Malawi developed the necessary financial resources for investing in entrepreneurship management skills. The authors also highlighted that social networks play a key role in boosting this crisis and developing economic growth. The authors chose the primary research analysis procedures by developing the interviews focused on a few regions of the Southern part of Malawi, Blantyre districts, and Mpemba (Kumdana, 2020). The authors here considered the Church members and the Bank Nkhonde for the financial resource management for entrepreneurship management. The authors also highlighted the limited involvement of women in enterprise management due to their lack of skills. The author also highlighted that most of the population in Malawi belongs to the below-poverty level and approximately 84% population in Malawi belongs to the Southern African region. The Malawi government also adopted the “Malawi National Youth Policy (2013)” programs by which the youth population of Malawai can receive the benefits from resources.

Figure 2: Gender-wise entrepreneurs in Malawi

The author highlighted that Malawi is the lowest-income country that faced several problems and challenges, due to lower income and inadequate resources. The author also found that almost 83% population in Malawi faced problems with skill mismatch with entrepreneurship. The age group of the 15-29-year-old population faces education problems and skill mismatch problems due to a lack of government initiatives for which the required labor demand is not satisfied in Malawi (Kumdana, 2020). The public sector or the government’s role is negotiable for which the labor cannot identify the required skill management for entrepreneurship development. The financial challenges and inadequate social networks are also associated with the informal sectors of African economics. Finally, the author highlighted the role of the Malawi government (GoM) and different types of policy programs to motivate the Youth population for entrepreneurship management.

2.3 Model and Theories

The theories and the model are two important factors in analyzing the entrepreneurship challenges by which the entrepreneurs in Malawi regions can overcome the associated problems of youth development programs.

Theories

There exist different types of entrepreneurship theories like the “Theory of innovation entrepreneurship”, “Theory of Sociological entrepreneurship”, and physiological entrepreneurship theories Economical entrepreneurship is the key theory that will help to address the key challenges faced by entrepreneurs in Malawi.

The “Economical Entrepreneurship Theory”

The theory of economic entrepreneurship plays an important role by the entrepreneurs in Malawi overcome the associated challenges of limited capital resources and investment challenges in entrepreneurship management in the Malawi region (Machado and Davim, 2022). Adoption of these theories will help to identify the economic framework and overall entrepreneurial process by which Malawi can overcome the financial resource management challenges, capital resource management, etc. This theory plays an important role by which the entrepreneurs can easily adopt the incentives to improve the gain and profitability.

Figure 3: The theories of the economics entrepreneurship

This theoretic approach will also help to identify the entrepreneurial behaviors based on the different periods of the classical, and the neo-classical analysis.

Innovation theories

The innovation theories are another popular theory developed by Schumpeter that help to identify the associated problems and the challenges faced in entrepreneurship management in Malawi regions (Zidana et al.2020). The Key theory of this theoretical approach is to identify the conventional challenges that are associated with entrepreneurship management in Malawi.

Figure 4: The innovation theory in Entrepreneurship

By adopting the above steps, Malawi will overcome the challenges faced in entrepreneurship management. The Youth will also learn how entrepreneurship management helps to improve project management in the Malawi region.

Model

There also exists another type of entrepreneurship models that help to overcome the challenges faced by entrepreneurship management in Malawi regions (Goslin et al.2021). Different types of models like the “Big Five Personality”, “Social marginality model”, and psychodynamic model are some popular models by which the entrepreneurship challenges can be overcome in Malawi regions.

Psychodynamic model

The Psychodynamic model is another popular model in entrepreneurship management that will provide the required benefits to overcome the entrepreneurship challenges faced in entrepreneurship management in Malawi regions (Gondwe et al. 2020). This type of model will boost the rural and urban population of the Malawi region which also encourages the youth populations to adopt entrepreneurship management.

Social marginality model

The model of Social marginality is another important theory that will also help to improve the social attributes for entrepreneurship management in Malawi regions. Adoption of these types of theories will also help to increase the social interaction levels among the youth populations in the Malawi region (Farace et al. 2020). This type of theory will also help to manage the entrepreneurship challenges faced in the Malawi region.

Therefore, these are the above theories and models that will help to overcome the entrepreneurship challenges faced in the Malawi regions.

2.4 Literature Gap

The literature gap helps to identify the future research area on how entrepreneurship management plays an important role in boosting economic growth. Kumdana, (2020) in his paper discussed how the role of social networks play an important role in managing entrepreneurship in Malawi. However, the author did not highlight the challenges faced in rural Malawi. The author also does not discuss the missing link between government youth entrepreneurship programs faced in the urban and rural Malwai regions in African countries. Similarly, Kamninga et al. 2021identify the social networks' role for entrepreneurship management in the Malawai region but the author did not highlight the role of NGOs or government enterprises for overcoming the challenges of entrepreneurship.

3. Methodology

The methodology outlines the steps and processes employed to research the challenges faced by entrepreneurs in Malawi. It covers the philosophical approach, research design, data collection methods, and analysis tools that will be used to address the research objectives. The methodology section is crucial for explaining how the research will be conducted and how it will provide insights into the entrepreneurial management issues in Malawi.

3.1 Method Outline

method outline focuses on the framework that will guide the research. It specifies the research philosophy (positivism) to identify challenges in entrepreneurial management, followed by a deductive approach to investigate the key problems entrepreneurs face in Malawi. The research will use a quantitative design, utilizing primary data through surveys and interviews to gather information. The method outline provides a clear direction for the research, helping to systematically address the issues related to entrepreneurship management in Malawi.

3.2 Research philosophy

Malawi is one type of landlocked country that belongs to the South African region, which faced huge challenges in developing entrepreneurship due to higher credit costs, lack of credit access, higher taxes, and poor infrastructure (Mwastika, 2021). Therefore, this research proposal proposes to use the positivism philosophy by which the main challenges faced by developing countries for entrepreneurship management can be improved. Using the positivism philosophy, the key challenges like credit access challenges, entrepreneurship management, and poor business services faced by the entrepreneur can be easily identified.

3.3 Research approach

The two types of research approaches deductive approach and the inductive approach are the two main research approaches that help to develop consistent planning in the entire research analysis.

Figure 5: research approach

Therefore, using the deductive approach can help to identify the key challenges and benefits of entrepreneurial management in Malawi, from the developing countries of Africa (Kuang, 2020). Using this deductive approach will also address the hypothetical observation of key challenges associated with entrepreneurial challenges in developing nations in Africa.

3.4 Research design

Figure 6: Research Design

The research design will help to identify the scientific blueprint of how Malawi faced entrepreneurial challenges due to different types of factors like higher tax revenues, poor business management situations, and lack of efficient and skilled labor (Mwatsika, 2021). Therefore, this research proposal proposes to use the quantitative design framework, by which the key entrepreneurship challenges can be correlated in entire analytical methods. The usage of the quantitative design will also help to relate the scientific analysis and the major factors that are associated with entrepreneurial management in the Malawi region of African countries.

3.5 Research Strategy

The primary data analysis method will help to address key areas for which Malawi experienced main challenges from entrepreneurship. Therefore, the interview and survey strategies will be the ideal approach to analyze entrepreneurship management by highlighting the special case of Malawi. 

3.6 Research Method

This research study will follow the primary research analysis with the quantitative research design. Therefore, this research study will follow the mono-research method. Usage of the mono-research method will help to focus on the consistent analysis of how the case of Malawi identifies the entrepreneurship challenges in African countries (Ndala and Pelser, 2021). This research study also proposes to use the quantitative research design for which the mono research method will be the most appreciated method for identifying the focused research analysis to find out the key factors in entrepreneur management analysis.

3.7 Data Analysis Tool

The primary research analysis on entrepreneurship challenges in the case of Malawi will be analyzed based on 30 survey questionnaires’. Different types of tools will be used like Excel, graphical analysis, chart representations, SPSS analysis, etc. (Bohwasi, 2020). The correlation will also help to address the challenges and the business growth in the entrepreneur sector of Malawi. The

3.8 Research limitation

This research study will focus only on the primary research analysis. Therefore, this will create research limitations from the theoretic aspects. This research study will not adopt the mixed method for which there creates a lack of theoretical analysis.

The limited time frame will be another major research limitation that will also create challenges for entrepreneurship management in the Malawi region. This present research study will also propose to follow the primary research analysis process for which this research analysis will also face financial management challenges (Chasukwa et al. 2023). This research study also took only 30 sample sizes among which the entire survey analysis of the missing link between the government youth improvement policies in entrepreneurship management can be easily identified. However, this sample size will be also limited to find out the proper “missing link” faced between adoption of the entrepreneurship management in the rural and the urban regions of Malawi.

3.9 Time Plan

Figure 7: Project libre

4.0. Expected Outcomes

Therefore, the above research analysis expects the key challenges of financial resources management, investment challenges will be the main challenges faced by the entrepreneurs in Malawi regions. This research study will also address the Government initiatives of Malawi (GoM) for overcoming entrepreneurship management.

Need help understanding business law, corporate ethics, or business economics? Our business assignment help provides detailed solutions for each aspect of your course, helping you excel academically.

References

Book

• Machado, C. and Davim, J.P. eds., 2020. Entrepreneurship and organizational innovation. Springer International Publishing. Retrieve from https://link.springer.com/content/pdf/10.1007/978-3-030-19289-1.pdf [Retrieve on: 10.02.2024]

Journals

• Bohwasi, P., 2020. African business models: An exploration of the role of culture and family in entrepreneurship. African Journal of Social Work, 10(1), pp.109-115.
• Farace, S., Lavadera, G.L. and Mazzotta, F., How does gender affect the adoption of different typologies of innovations? The case of Malawi.
• Gondwe, S., Kasiya, S., Maulidi, F. and Munthali, G.T., 2020. Assessment of youth employment initiatives in Malawi: Implementation realities and policy perspective. FARA Research Report 5 (6): Pp32.
• Goslin, A., Kluka, D.A. and Nessel, K., 2021. Entrepreneurial intent and orientation in cohorts of a university-accredited sport business management certificate program in Malawi. International Sport Business Management: Issues and New Ideas, pp.181-192.
• Kamninga, T.M., Masanjala, W.H., Bangara, B.C. and Mwale, M.L., 2022. The Role of Social Networks on Youth Migration, Settlement and Entrepreneurship in Malawi. Migration Letters, 19(1), pp.29-40.
• Kuang, X., 2020. THE INFORMAL LEARNING PROCESS AS ENTREPRENEURIAL LEARNING WITHIN RURAL COMMUNITIES-Insights from a case study in rural Malawi.
• Kumdana, J., 2020. The role of social networks in supporting micro and small entrepreneurship in Malawi.
• Mwastika, C., 2021. Perceptions of entrepreneurship in Malawi: a country context understanding of entrepreneurship. International Journal of Entrepreneurial Knowledge, 9(2), pp.49-62.]
• Mwatsika, C., 2021. Implications of the understanding of Entrepreneurship in Local Economic Development in Malawi. Journal of Development and Communication Studies, 8(2), pp.1-20.
• Ndala, N.N. and Pelser, T., 2020. Exploring the entrepreneurship policy-making and outcomes undertaken by public institutions involved in entrepreneurship development in Malawi. Journal of Contemporary Management, 17(se1), pp.1-21.
• Zidana, R., Kaliati, F. and Shani, C., 2020. Assessment of Youth engagement in agriculture and agribusiness in Malawi: Perceptions and hindrances. J. Entrep. Manag, 9, p.19.

Articles

• Chasukwa, M., Kayuni, H., Dulani, B. and Chiweza, A.L., 2023. Identity Entrepreneurs and Cultural Framers in Contemporary Ethnic Identity Mobilisation in Malawi. The African Review, 1(aop), pp.1-22. Retrieve from https://brill.com/view/journals/tare/aop/article-10.1163-1821889x-bja10053/article-10.1163-1821889x-bja10053.xml [Retrieve on: 10.02.2024]