Challenges and strategies to survive in Zimbabwe’s hostile business environment: The case of manufacturing firms in Harare

Abstract

The quantitative study sought to ascertain the strategies that manufacturing firms adopted in order to survive in Zimbabwe’s hostile business environment. The survival of a firm in such an environment depends on its capacity to deal with a number of challenges that threaten its survival. Through factor analysis the main challenges being faced by the 192 manufacturing firms that were identified through stratified random sampling are cheap imports, liquidity crunch, corruption, political instability, inadequate infrastructure and restrictive labor regulations. The underlying strategies that are being used to survive include downsizing, partnerships, offshore financing, alternative sources of water and power, and retrenchments. The results of the study can serve as a guide to policy makers in their endeavor to formulate policies of formalising the informal sector.