Zimbabwean entrepreneurship’s competitiveness in face of international trade in the manufacturing sector: a case of Ledger Paints

Abstract

The Zimbabwean economy is in a transition from multinational conglomerates dominated economy into a locally owned entrepreneurial system. However although fairly new, local entrepreneurship now owns the gateway to Zimbabwean competitiveness in the global market hence this study sought to assess its competitiveness going into the future. The research sought to analyses the competitiveness of local entrepreneur’s products as compared to international products brought by international trade into the local market. This was prompted by the fact that locally manufactured products are being out competed by imports, thus destroying local business. so the study was aimed at better understanding the competition imposed by foreign products to the local market, the reasons for international product preference by the local customers, the challenges confronting local entrepreneurs restraining their competitiveness and the strategies that needs to be employed going in to the future to enhance local entrepreneurship’s competitiveness. Using qualitative research methodology a descriptive and case study research design was used while interviews and focus groups were the research instruments applied. The respondents were the management, employees and customers of ledger Paints. The findings show that local products are not competitive as compared to foreign ones mainly due to higher local prices against high quality low priced imports and this was caused by the economic challenges that the country is facing. The research concluded that Zimbabweans customers in the manufacturing sector prefers international products and that this was mainly due to their lower pricing and the status they accord local customers. It was also concluded that the economic environment is the major challenge to local entrepreneurial competitiveness and that the number one strategy to turn around local competitiveness would be through economic policy reforms and at corporate level innovative cost reduction strategies were also noted to be the most effective of strategies. Recommendations were made on how best local products can become competitive on the market and these include government revisiting its economic policies and reengaging with the investing and market community and also that at corporate level product, process and organizational innovation must be part of the corporate culture so as to reduce costs and upgrade local product quality.