An assessment of the operational challenges faced by small business start-ups in Zimbabwe: a survey of hardware equipment dealers

Abstract

Operational challenges are problems that affect profitability and inhibit the smooth running of business operations in hardware equipment dealing. The problem was that the business start- ups had a financial problem, contributing to other problems which are space constraints, personnel issues and collateral issues. Other challenges included competition and governmental related issues. There was the use of a quantitative method. The survey aimed to identify major operational challenges faced by small business start-ups in hardware equipment, to ascertain the extent to which adequate financial access contribute to overcome other operational challenges, to examine the effects of lack of finance on personnel management, to determine the effect of governmental issues towards competition and to suggest ways to help business start-ups to overcome operational challenges. The pecking order theory, credit rationing theory, complexity theory, perspective and Schumpeter’s theory underpinned the study. A quantitative research was carried out and simple random probability sampling was used with a sample size of to 250 hardware dealers. The positivism philosophy, search strategies, explanatory design and a structured questionnaire were used. The research showed that there was a positive relationship between financial access and entrepreneurial growth. There was a positive correlation between financial access and personnel management. Government had a positive moderating effect on business operations. The findings show that the business start-ups in Zimbabwe in particular hardware dealers greatly faced operational challenges.