Support to youth entrepreneurship in the informal sector: a case of Lusaka’s Kamwala trading area, Zambia

Abstract

This study aimed at exploring the nature of youth entrepreneurship support in Kamwala Trading Area of Lusaka, Zambia. The objectives that guided the study were: to establish the nature of business activities that youths in the informal economy engage in; to explore the kind of government support youths have access to; and to understand the opportunities and challenges associated with government support in promoting youth entrepreneurship. A case study research design using qualitative approaches was used to conduct this study. The sample composed of 21self-employed youths aged between 26 and 35 years and 3 key informants. All participants were selected using purposive sampling techniques. Data was collected using an interview guide and analysed thematically. Findings of the study were that youths in Kamwala trading area engaged in trading of consumer goods and services such as restaurants, hair salons, tailoring, sale of perishables like fruits and vegetables and non-perishables such as footwear, phones and phone accessories. The study established that capital (money), patience, determination, being good to customers and having access to trading space are necessary requirements for the success of these businesses. The study revealed that youth entrepreneurs have access to loans and trading space as support from the government. However, the officials reported that they provide support such as skills development, training, mentorship and networking.Further, the youths indicated that the government should continue giving them loans because they are more effective in growing their businesses while the officials from the government argued that skills development was very important because skills do not diminish and that when one is empowered with skills they have the ability to execute business opportunities. The study established the nature of the registration process, competition and high interest rates on loans as some of the challenges associated with government support. The study recommended that the government should ensure that the programs and policies meant for youth run businesses are viable and accessible. It was also recommended that the government should put in place a mechanism of accountability on how resources are disbursed to ensure intended beneficiaries have access to the support. Key Words: Youth Entrepreneurship, Government support