Impact of Entrepreneurial Activities on Employment Creation

A Case Study of Gweru

Abstract

The government is struggling to look for solutions to the unemployment challenge and one approach has been the promotion of self-employment through entrepreneurship.  Since 2000 onwards capacity utilization has been shrinking resulting in colossal retrenchments both in the private and public sector. As a result the majority both skilled and unskilled labour in underperforming economies survive on informal sector activities. Therefore the paper investigated the impact of entrepreneurship activities on employment creation, a case study of Gweru Central Business District. Descriptive design was employed to collect data using an open ended questionnaire and it was supported by purposive sampling technique. The sample consisted of 350 people out of the entrepreneurs in Gweru urban. Data was collected using an open ended questionnaire.The study revealed that entrepreneurship activities create employment and contributed significantly to the development of the Zimbabwean economy. Nonetheless, entrepreneurs are constrained in their maneuvers because of lack of financial support and infrastructure. Given their significance to the economy, the paper suggests that these businesses should be assisted by the relevant stakeholders to graduate from informal to formal sector. This will boost rapid economic growth.