By Clive Siachiyako
For decades, d
evelopment structures of developing economies largely ignored the role of entrepreneurship in economic development and wealth creation. Zambia’s economic development structure for instance steepened towards attracting foreign investment mainly in mining and manufacturing sectors and support industries. But economic dynamics show that the ticket to faster and broader income growth is through entrepreneurial innovation. New economic systems put a premium on “adaptive efficiency,” which refers to the ability of institutions to innovate, continuously learn, and productively change.As markets fragment, technology accelerates and competition comes from unexpected places, learning, creativity, and adaptation have become the principal sources of competitive advantage in many industries. Enabling constant innovation needs to become the goal of all organisations committed to prospering. These efforts need to be proactive and designed for the long term. Government and business leaders need to challenge all economic sectors and institutions to become cultures of innovation. The consequences for any sector that does not respond to this challenge are low productivity, stagnant living standards, and reduced opportunity for its citizens, Empretec Zambia has noted.
Background of Empretec
Entrepreneur and Technology (Empretec) is a new programme in the Zambia. The programme is an integrated capacity-building programme of the United Nations Conference on Trade and Development (UNCTAD) and is coordinated by the Zambia Development Agency. The programme promotes the creation of sustainable support structures that help promising entrepreneurs build innovative and internationally competitive small and medium 
sized enterprises (SMEs). It encourages the formation of mutually beneficial business linkages among SMEs and Trans-national Corporations (TNCs). As a result, it contributes to the creation of a dynamic private sector and an open entrepreneurial culture. It is therefore a vital complement to effective macroeconomic policies and enabling legal and regulatory framework.
The term Empretec is a Spanish acronym for emprendedores (entrepreneurs) and tecnologìa (technology). It was first introduced in Argentina in 1988, with the core objective of holding entrepreneurship training workshops. These entrepreneurship training workshops encourage individual entrepreneurs to focus on their role as entrepreneurs and challenge them to critically examine their personal strengths and weaknesses and learn how to sustain their businesses. Since inception, the Empretec programme has been initiated in twenty-seven countries, assisting more than 80 000 entrepreneurs through local market-driven business support centres.
sized enterprises (SMEs). It encourages the formation of mutually beneficial business linkages among SMEs and Trans-national Corporations (TNCs). As a result, it contributes to the creation of a dynamic private sector and an open entrepreneurial culture. It is therefore a vital complement to effective macroeconomic policies and enabling legal and regulatory framework.The term Empretec is a Spanish acronym for emprendedores (entrepreneurs) and tecnologìa (technology). It was first introduced in Argentina in 1988, with the core objective of holding entrepreneurship training workshops. These entrepreneurship training workshops encourage individual entrepreneurs to focus on their role as entrepreneurs and challenge them to critically examine their personal strengths and weaknesses and learn how to sustain their businesses. Since inception, the Empretec programme has been initiated in twenty-seven countries, assisting more than 80 000 entrepreneurs through local market-driven business support centres.
Programme Methodology
The Empretec programme strives to identify and reinforce entrepreneurial competencies that are associated with successful traits, through self-assessment and individual transformation and business stimulation activities during entrepreneurship training workshops. These ‘motivation achievement’ workshops encourage individuals to focus on their role as entrepreneurs and challenge them to critically 
examine their personal strengthens and weaknesses. This is meant to provide an opportunity for participants to become more familiar with personality competencies of successful entrepreneurs, strengthen and enhance those personalities in themselves, and eventually be able to apply the personalities in their own businesses.
The training method is highly interactive. It involves structured exercises, group dynamics, diagnostic tools, business events and other activities, which are designed to challenge the participants to focus on such issues as their ability and willingness to seek and attain continuous improvements in quality, efficiency, growth, and profitability. This is achieved through learning by doing. The training enables participants to become aware of the need for continuous improvement as a competitive strategy in every aspect of their business.
Successful graduates of the programme obtain a clear vision of what they want to do with their businesses in the short and long term. In the words of many participants, Empretec is a "culture of entrepreneurship" common to entrepreneurs who are open minded, forward thinking, look for win-win situations, want to improve and "speak the same language". Therefore, they trust each other and are more likely to do business among themselves.
Generally, Empretec is a programme that focuses on improving the core entrepreneurial behaviours of business owners that influence their conduct, and above all, the results of their business.
examine their personal strengthens and weaknesses. This is meant to provide an opportunity for participants to become more familiar with personality competencies of successful entrepreneurs, strengthen and enhance those personalities in themselves, and eventually be able to apply the personalities in their own businesses.The training method is highly interactive. It involves structured exercises, group dynamics, diagnostic tools, business events and other activities, which are designed to challenge the participants to focus on such issues as their ability and willingness to seek and attain continuous improvements in quality, efficiency, growth, and profitability. This is achieved through learning by doing. The training enables participants to become aware of the need for continuous improvement as a competitive strategy in every aspect of their business.
Successful graduates of the programme obtain a clear vision of what they want to do with their businesses in the short and long term. In the words of many participants, Empretec is a "culture of entrepreneurship" common to entrepreneurs who are open minded, forward thinking, look for win-win situations, want to improve and "speak the same language". Therefore, they trust each other and are more likely to do business among themselves.
Generally, Empretec is a programme that focuses on improving the core entrepreneurial behaviours of business owners that influence their conduct, and above all, the results of their business.
Target Beneficiaries
Empretec does not define its target group by assets, turnover, or number of employees. The beneficiaries are identified on the basis of both their personal entrepreneurial competencies and their innovative approach to business. The direct beneficiaries of the Empretec programme include existing SMEs that have a track record of good business performance, potential entrepreneurs with promising business ideas, and start-up companies with good bankable project proposals. It is expected that the individual development of the entrepreneurs that takes place during an entrepreneur training workshop will lead to SME growth, linkages with larger enterprises including transnational corporations (TNCs), job creation, increased investment, and regional economic development.
neurs with promising business ideas, and start-up companies with good bankable project proposals. It is expected that the individual development of the entrepreneurs that takes place during an entrepreneur training workshop will lead to SME growth, linkages with larger enterprises including transnational corporations (TNCs), job creation, increased investment, and regional economic development.To effect the programme activities in Zambia, UNCTAD recently trained eleven local empretecos (trainer of trainers) to spearhead the activities of the programme in the country. The eleven were drawn from the Zambia Development Agency, International Labour Organisation, Zambia Chamber of Small and Medium Business Associations, Young Women Christian Association, Future Search, and the Technical Educational, Vocational and Entrepreneurship Training Authority. The training was meant to help the Empretec Zambia Programme to get organised and established before it could start running on its own. Zambia Development Agency will coordinate all the programme activities in the country.
Economic Hope through the Triangle of Hope
Currently, the real challenge of investment promotion agencies is being close to investors. They are struggling to be major partners of investors, taking care of their business needs and sustaining their future development plans.
Being close to investors means being able to provide a conducive environment that match investors’ activities. This requires a strong political support. It requires legal, regulatory and institutional reforms necessary in the creation of a conducive investor environment and a myriad of other essentials.
Being close to investors means being able to provide a conducive environment that match investors’ activities. This requires a strong political support. It requires legal, regulatory and institutional reforms necessary in the creation of a conducive investor environment and a myriad of other essentials.
Keeping in conformity with these demands, Zambia has been implementing various sector reforms intended to create a conducive environment for the private sector to thrive. In this regard, recent expenditure frameworks are gravitated towards infrastructure development. These initiatives are meant to create a firm foundation for economic growth for the country by having an improved investment and business environment in Zambia. Among the most prominent of these reforms are the Private Sector Development Programme, Financial Sector Development Plan and the Strategic Action Initiative for Economic Development, commonly referred to as the Triangle of Hope (ToH).
The genesis of the Triangle of Hope dates back to January 2005 when the Zambian government asked the Japan International Cooperation Agency (JICA) for help in investment promotion. In agreement, JICA engaged a Malaysian consultant to come up with terms of promoting investment for Zambia under the Action for Africa programme. This gave birth to the Strategic Action Initiatives for Economic Development or simply the Triangle of Hope.
The core of ToH is to assist in the creation of an environment in which the private sector creates more jobs and generate greater wealth in Zambia. The initiative takes after the Malaysian and Far Eastern Experience with economic development. It illustrates how Malaysia, a multi racial nation and basically raw material exporter in the early 1960s was convulsed in racial violence in 1967 and threatened to become another basket case Developing Nation. It brings lessons on how by stint of national unity, political will, civil service efficiency and private sector dynamism the nation within 10 years, Malaysia became the worlds largest exporter of electronic semiconductors and the 3rd largest country in the world exporting room air conditioners. To bring to effect the Malaysian Miracles, the initiative encourages the creation of a conducive investment and business environment by government for the private sector to increase its levels of investment. The Zambian government committed itself to the parametres of the initiative in trying to increase private sector investment flows. The government thus pledged to provide the required environment for the attainment of the Triangle of Hope targets.
These requirements include the provision of efficient, effective public services and facilities and performance-based and time-bound incentives. This involved private sector reforms like the streamlining of government approval and licencing procedures, and transparent incentives to all prospective investors.
The Triangle of Hope investment promotion initiative employs the Quadrant Strategy to attain the ultimate objective of job and wealth creation. The entry point into the four stages is about putting in place the best investment and business environment through improved policies, streamlined government machinery, rules, regulations, laws and incentives that conform to international best practices. These reforms embrace all government functionaries in order to have well-coordinated investment promotion information packages on the services, facilities and incentives government offers. The strategy is meant to help Zambia offer the competitive advantage that drive down the cost of doing business in the country.
The second stage looks at how government and private sector entities interested in accessing capital through joint ventures or technology and equipment should prepare Project or Business Profiles. Further, government is mandated to develop and implement an investment promotion strategy where the information on available business opportunities in the country will be distributed to investors at home and abroad. And lastly, the Quadrant Strategy mandates government agencies to use knowledge gained on the best practices to facilitate the quick implementation of approved projects through the entire government system from national level to the grassroots level so that jobs and wealth can be created at all levels. This would in turn give businesses in Zambia attain profits in being in a globally competitive environment and thereby contribute to the expansion of the Zambian economy.
The implementation process of the ToH involved the formation of task forces composed of members of the civil service and the private sector. The task forces were mandated to prepare recommendations for cabinet consideration on the creation of favourable business environment. The ToH steering committees that were formed included those for the agriculture, banking and finance, education, health, mining, multi-facility economic zones, micro and small enterprises, among others. The aim for inclusiveness was to generate the sense of belo
nging by all stakeholders.The Triangle of Hope has since increased the spirit of collaboration among government agencies and cooperating partners in dealing with programmes that are aimed at improving the environment for doing business in Zambia. Such efforts are expected to stimulate further collaborations in pursuing strategies that make Zambia an all weather investment destination. The private sector development programme has since already dedicated resources for the identification of land banks that will be used for various business purposes. The ToH itself has also been given another lease for three years by JICA having came to an end last year. The net effect of the programme is the creation of business-oriented environment in the country.
Joint Ventures: A Tool for Zambian Businesses’ Growth
“You can resist an invading army, but you cannot resist an idea whose time has come,” think-tanks remark. Today, the concept of joint ventures is such an idea.
The triumph of joint ventures is driven by profound market economic changes. A trio of the market economic demands (efficiency, innovativeness and creativity) is dictating joint ventures at a cracking pace. Even micro and small enterprises register highly on the profit score card when they join forces, and they reach markets that were once the privilege of giant businesses.
Joint ventures provide abundant business reasons, such as complementary capabilities and resources. The initiative offers affluent platforms for business growth and it has become an important strategic option for many businesses. Due to the increase in receptive business strategies to the market economy, businesses are now operating in a world without borders even amid cultural and language barriers. And these changes require firm business muscles to remain afloat.
It is against this backdrop that the Zambia Development Agency (ZDA) finds a niche in promoting Greenfield investments through joint ventures between local and foreign investors. The Agency considers forging such strategic partnerships with Zambian companies is one of the ways in which foreign companies can set up their operations in Zambia. The nature of these joint ventures is co-ownership of a business, where there is joint decision making. The partnership is formed on the basis of each bringing assets into the business, in the form of capital, expertise or technology.
A joint venture refers to a contractual arrangement, subject to joint control, whereby two or more companies pool their resources together and collaborate in carrying out a business activity without necessarily creating a separate entity. The parties may also agree to share the risks involved but the degree to which they do so will vary depending on the particular structure of the venture they have chosen. Such companies can agree to share capital, technology, human resources, risks and rewards under shared control.
The form of a joint venture can be determined by a number of factors including the nature and size of enterprise, the anticipated length of the venture, the identity and location of the parties and the commercial and financial objectives of the participants. Regardless of the determinants of the partnership, ZDA assists interested investors in identifying joint venture partners and offering matchmaking services for investors seeking cooperation in the areas of capital, technology, management and marketing. The Agency also advises and participates in the negotiation of joint ventures.
Businesses form joint ventures for many reasons which include business expansion, development of new products or moving into new markets. Other benefits to the host economy include the introduction of new technology, the establishment distribution set ups and available financial resource. Contacts are also established within the host economy, a trend which can help to smoothen the process of setting up operations. The joint ventures are also meant for growth, stability and survival of the businesses from economic uncertainties. When businesses join forces, they attain strong potential for growth and can have innovative ideas and products. This entails that businesses gain more resources, greater capacity, increased technical expertise and access to established markets as well as distribution channels.
Although the setting-up of a joint venture depends on what is to be achieved by the parties involved, there are three basic structures that can be used. These are being a limited liability company (a corporate vehicle); a partnership or limited partnership (an unincorporated vehicle); or a purely contractual co-operation agreement. This entails that businesses of any size can use joint ventures to strengthen long-term relationships or to collaborate on short-term projects.
The formation of a joint venture can be complex. However, successful joint ventures offer affluent business break through opportunities such as access to new markets, distribution networks, and increased business capacity; as risks are shared with a partner. Thus the intensity of business risks is reduced. Partners also have greater access to resources, including specialised staff and technology. The joint ventures offer partners channels by which they can reduce costs, increase productivity, enhance reputation and licence to operate. The partners also access local knowledge/ or and integrate into foreign markets – while at the same time helping to create economic opportunity in underdeveloped regions.
Expanding and accelerating business partnership activities should therefore be a shared priority to increase the growth platform for the domestic economy that could have otherwise remained stagnant. In this view, ZDA creates awareness among Zambian businesses to enable them participate in joint ventures. The objectives of the Agency are to enable Zambian businesses understand the concept of joint ventures, acquire skills to manage the selection and negotiation of such initiatives and identify capacity challenges in forming those joint ventures. ZDA often conduct workshops to educate businesses on the selection of a joint venture, negotiating for it, preparing documents and on the registration process of such joint ventures with the Agency’s mandated division.
Such joint venture workshops provide valuable and enriching experience for Zambian businesses to learn more about the joint venture concept. Thus, anyone interested in a joint venture can visit the ZDA so that they can fill in a standard application form and submit their business profile and business plan as per requirement. ZDA will then present such information to interested foreign or local investors through various media such as its website and in its publications that are sent to various missions abroad.
The triumph of joint ventures is driven by profound market economic changes. A trio of the market economic demands (efficiency, innovativeness and creativity) is dictating joint ventures at a cracking pace. Even micro and small enterprises register highly on the profit score card when they join forces, and they reach markets that were once the privilege of
giant businesses.Joint ventures provide abundant business reasons, such as complementary capabilities and resources. The initiative offers affluent platforms for business growth and it has become an important strategic option for many businesses. Due to the increase in receptive business strategies to the market economy, businesses are now operating in a world without borders even amid cultural and language barriers. And these changes require firm business muscles to remain afloat.
It is against this backdrop that the Zambia Development Agency (ZDA) finds a niche in promoting Greenfield investments through joint ventures between local and foreign investors. The Agency considers forging such strategic partnerships with Zambian companies is one of the ways in which foreign companies can set up their operations in Zambia. The nature of these joint ventures is co-ownership of a business, where there is joint decision making. The partnership is formed on the basis of each bringing assets into the business, in the form of capital, expertise or technology.
A joint venture refers to a contractual arrangement, subject to joint control, whereby two or more companies pool their resources together and collaborate in carrying out a business activity without necessarily creating a separate entity. The parties may also agree to share the risks involved but the degree to which they do so will vary depending on the particular structure of the venture they have chosen. Such companies can agree to share capital, technology, human resources, risks and rewards under shared control.
The form of a joint venture can be determined by a number of factors including the nature and size of enterprise, the anticipated length of the venture, the identity and location of the parties and the commercial and financial objectives of the participants. Regardless of the determinants of the partnership, ZDA assists interested investors in identifying joint venture partners and offering matchmaking services for investors seeking cooperation in the areas of capital, technology, management and marketing. The Agency also advises and participates in the negotiation of joint ventures.
Businesses form joint ventures for many reasons which include business expansion, development of new products or moving into new markets. Other benefits to the host economy include the introduction of new technology, the establishment distribution set ups and available financial resource. Contacts are also established within the host economy, a trend which can help to smoothen the process of setting up operations. The joint ventures are also meant for growth, stability and survival of the businesses from economic uncertainties. When businesses join forces, they attain strong potential for growth and can have innovative ideas and products. This entails that businesses gain more resources, greater capacity, increased technical expertise and access to established markets as well as distribution channels.
Although the setting-up of a joint venture depends on what is to be achieved by the parties involved, there are three basic structures that can be used. These are being a limited liability company (a corporate vehicle); a partnership or limited partnership (an unincorporated vehicle); or a purely contractual co-operation agreement. This entails that businesses of any size can use joint ventures to strengthen long-term relationships or to collaborate on short-term projects.
The formation of a joint venture can be complex. However, successful joint ventures offer affluent business break through opportunities such as access to new markets, distribution networks, and increased business capacity; as risks are shared with a partner. Thus the intensity of business risks is reduced. Partners also have greater access to resources, including specialised staff and technology. The joint ventures offer partners channels by which they can reduce costs, increase productivity, enhance reputation and licence to operate. The partners also access local knowledge/ or and integrate into foreign markets – while at the same time helping to create economic opportunity in underdeveloped regions.
Expanding and accelerating business partnership activities should therefore be a shared priority to increase the growth platform for the domestic economy that could have otherwise remained stagnant. In this view, ZDA creates awareness among Zambian businesses to enable them participate in joint ventures. The objectives of the
Agency are to enable Zambian businesses understand the concept of joint ventures, acquire skills to manage the selection and negotiation of such initiatives and identify capacity challenges in forming those joint ventures. ZDA often conduct workshops to educate businesses on the selection of a joint venture, negotiating for it, preparing documents and on the registration process of such joint ventures with the Agency’s mandated division.Such joint venture workshops provide valuable and enriching experience for Zambian businesses to learn more about the joint venture concept. Thus, anyone interested in a joint venture can visit the ZDA so that they can fill in a standard application form and submit their business profile and business plan as per requirement. ZDA will then present such information to interested foreign or local investors through various media such as its website and in its publications that are sent to various missions abroad.
A very good article. I can relate to the essence.
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