The Nexus between the Establishment of an Enabling Environment and Local Economic Development in the City of Harare

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue XI, November 2021 | ISSN 2454–6186

The Nexus between the Establishment of an Enabling Environment and Local Economic Development in the City of Harare

Anesu Mironga
College of Business, Peace, Leadership and Governance, Africa University, Mutare, Zimbabwe

Abstract: The ways in which local governments advance and put into operation their policies on the establishment of a conducive environment for businesses to thrive and flourish has great effect and impact on the development of an area. The main actor in Local Economic Development (LED) is local government and it should support the establishment of a conducive and enabling environment that is developmental and facilitates local businesses to grow and succeed. There should be mutual symbiotic relationships between communities, business and local government for Local Economic Development to take place. The study examined the nexus between the establishment of a conducive and enabling environment and local economic development in the City of Harare. Results from this study should assist local authorities in their quest to provide the best for citizens in terms of service delivery and good governance. The study’s major goal was to see if the creation of an enabling environment could help people succeed. The study’s major goal was to examine the notion that creating an enabling environment leads to local economic development. The study focused on business operators in Machipisa, Mbare Musika and the Central Business District of Harare. The perceptions of these operators and business owners were investigated. A total of 65 business operators were interviewed in the three areas using a structured questionnaire based on Enabling Developmental Environment Scale (EDES). Statistical analysis of data was done through Statistical Package for Social Sciences using descriptive analysis. The results revealed that there is a strong positive correlation (correlation coefficient above 0) between an enabling environment and economic growth. This implies that the more the local governments invest in creating an enabling environment the more economic development is achieved.

Keywords: Local development, Enabling Environment, Local Economic Development, Service Delivery, Good Governance

I. INTRODUCTION

Economies at local levels are shaped by processes and policies such as urbanization, migration, national and global trade and production systems. These dynamisms produce risks and opportunities in local areas, necessitating action through the central government’s and local governments’ implementation of programs and plans aimed at both national and local development.

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