According to Fisher (2009) a literature review is an account of what has been published on a topic by accredited scholars and researchers. It forms the foundation on which an article is built Its purpose is to assist to develop an insight into relevant previous research and trends that have emerged.The intention of this section will be to provide a general understanding of some of the theoretical knowledge that will be applied in this paper.
1 THE ECONOMIC NATURE OF ENTREPRENUERSHIP
According to Schumpeter (1934) economic development can be directly attributed to the level of entrepreneurial activity in a country. Bird (1989) adds that Entrepreneurial businesses ...view middle of the document...
Mill stressed the significance of entrepreneurship for economic growth and claims that entrepreneurship required a special skill, (Schumpeter, 1951).
ENTREPRENEURIAL DEVELOPMENT THEORY MODEL
PERIOD TOPICS AUTHORS AND RESEARCHERS
1. What entrepreneurs do 1700- (1950) From an Economic Perspective Cantillon,Say,Schumpeter
2. Who entrepreneurs are 1960 – (1980) From a behaviorist perspective Weber,McClelland,Rotter,De Vries
3. What entrepreneurs do 1980 From a management science perspective (finance,marketing,operations,human resources) Drucker ,Mintzberg
4. What support is needed, by entrepreneurs (1985) From a social perspective, including economists, geographers and sociologists Gartner,Welsh,Bygrave,Reynold
5. What entrepreneurial activities are and what competencies are required to perform them 1990 - From an entrepreneurship perspective Timmons,Vesper,Brockhaus, Marshal
Source: Fillion (1991)
Timmons (2000) believes entrepreneurship is the process of creating or seizing an opportunity and pursuing it, regardless of the resources currently controlled. Watson (2000) adds that the distinguishing factors of entrepreneurs are mainly innovation, opportunity recognition and business growth. Hisrich and Peters (1998) see the entrepreneur as someone creating something new with value by devoting time and effort, assuming the risks accompanied by the creation and receiving the resulting rewards of monetary and personal satisfaction and independence. According to Lumpkin and Dess, (1996), the essence of entrepreneurship is creation. Wickham (2003) stresses that entrepreneurship is about “creating and managing vision and communicating that vision to other people.Through a vast literature review, the author realises that Entrepreneurship is fundamentally about identifying opportunities independently or within a corporate system that are profitable and are convertible into a new business or into a new way of doing things, the concepts of Innovation, Growth and Risk Taking create the backdrop of which the discipline is founded.
4 CHALLENGES AFFECTING ENTREPRENEURS AND SME’S IN ZIMBABWE
In Zimbabwe, the SME sector has faced a variety of constraints that hinder its growth and development. The principal areas of concern affecting the development of the SME sector identified by various studies include:
• Limited access and cost of finance.
• Lack of marketing skills and market knowledge, inadequate management and entrepreneurial skills.
Sources of Finance are the main challenge for most Zimbabweans and the current economic environment does not assist in mitigating this challenge. Most Zimbabweans have to save their money to start up a business and that process of saving usually is too long to keep a window of opportunity open.
Sources of start-up finance by firm size
Micro Small Medium Large Mean
Own savings 90% 80% 58% 52% 71%
Friends/relatives 13% 2%
bank loan 3% 14%