The 2000–2008 Economic Crisis in Zimbabwe
Status and Survival Strategies of Business Survivors in Rural Areas
DOI:
https://doi.org/10.24086/cuejhss.v8n1y2024.pp107-114Keywords:
Business survivors, Economic crisis, Entrepreneurs, Operations, Survival strategiesAbstract
Between 2000 and 2008, Zimbabwe was hit by one of the devastating economic situations which threatened the lives of businesses and also led to the closure of several businesses. The main purpose of this paper was to trace the survivors of Zimbabwe’s 2000-2008 economic distress and establish the strategies they employ to avert future economic pandemics in the country. A mixed research approach was utilised to carry out the study, with data being collected from a sample of 105 business people and their employees in rural Zimbabwe. A self-designed questionnaire and interview guide were used to solicit data from participants with descriptive and thematic analysis data analysis methods being utilised as data analysis tools. The study revealed that while a significant number of businesses closed their businesses due to the economic downturn some survived and self-rejuvenated and moved on in 2009 when the economy stabilised. The strategies most businesses in rural areas employ to avert effects of future economic distress include among others; 1) diversification, 2) trading in foreign currency, 3) avoiding selling goods on credit, and 4) keeping savings in USD and traditional banks. It was recommended that businesses in rural areas need to manage their businesses in a more professional way so that they do not easily get affected by socio-economic shocks and political upheavals.
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