Social Venturing and co-operative Entrepreneurship Business Model (SVCE-bm) for Growing MSMEs in Zambia

Abstract

The majority of the Zambian population depend on agricultural industry for their economic livelihood. They own agricultural based micro small and medium enterprises (MSMEs) including smallholder farms or co-operatives. Most of these MSMEs are unproductive and are unable to grow, thereby, failing to raise national food production and rural poverty.

Scholars and business practitioners have converged on the notion that business models are used to create, deliver and capture economic and social value and we believe good business models would bring about rural economic development as the case is with new generation co-operative business models (NGC-bm).

The study objective is to design a generic SVCE-bm for growing MSME in Zambia. The question is: How can SVCE-bm grow MSME and make them competitive on Zambian market, with special interest in supply chain integration policies of farming and agribusiness?

A qualitative study using multiple case study design was used. Open ended and semi-structured questions were administered. Individual and group interviews were used. Attending management meetings and feedback from conference and peer presentations. Secondary data from published company information was used.

The findings from the three cases (Effectiveness of co-operatives for agribusiness, Good performing enterprise with SVCE-bm and Similarities and differences between NGC-bm and SVCE-bm) helped in designing SVCE-bm.

The SVCE-bm needs further piloting and fine-tuning the elements; the model requires supportive policy and regulatory framework; It is be based on appreciative enquiry, Goldratt's theory of constraints – leveraging on existing resources, social capital and tacit knowledge.