Entrepreneurship Development in Malawi

This project explores the challenges of youth entrepreneurship and unemployment in Malawi. It examines factors affecting youth entrepreneurship, obstacles faced by Malawian entrepreneurs, and government initiatives to promote entrepreneurship and reduce unemployment. The project utilizes a mixed-method approach, combining quantitative and qualitative data collection techniques, including surveys, observations, and focus groups.

Entrepreneurship
Development in Malawi

Table of Contents
TASK 1.1 Selecting a research question with aims and objectives.................................................3
TASK 1.2 Factors that contribute the process of successful research question...............................4
TASK 1.3 Justify research question.................................................................................................4
TASK 2.1 Conduct research to find literature.................................................................................5
The importance of Youth Entrepreneurship in Malawi...................................................................5
TASK 2.2 Undertake critical review of the literature......................................................................7
TASK 3.1 Evaluate techniques for use of quantitative data............................................................8
TASK 3.2 Evaluate techniques for use of qualitative data..............................................................9
TASK 4.1 Evaluate research methodologies for research question.................................................9
TASK 4.2 Choose appropriate methodology for research questions.............................................10
TASK 4.3 Justify methodology selected for research question.....................................................12
TASK 5.1 Record findings, literature review and methodology...................................................12
TASK 5.2 Summarise the findings using suitable methods..........................................................13
TASK 5.3 Present the findings using suitable methods.................................................................13
TASK 5.4 Critically analyse the findings......................................................................................14
REFERENCES..............................................................................................................................15

TITLE: “Entrepreneurship Development in Malawi”
TASK 1.1 SELECTING A RESEARCH QUESTION WITH AIM AND OBJECTIVES
Introduction
Entrepreneurship promotes skills and talent in youth with the aim of creating and
organising sustainable and efficient business which has ability of offering permanent
employment and job opportunities. In Malawi unemployment is high, which gives a chance to
rethink on the economic stability. It embraces a new idealism in youth which has a good
potential that can turn the status into quo sound. In order to improve quality of life there should
be growth and development. Growth occurs due to consumption of existing goods and services
and development is introduced not by the creation of new goods but also with new goals and
processes. Thus, entrepreneurship could help in achieving entrepreneur's goals by contributing to
innovative growth (Ager, 2015). Malawi is facing various problems in order to reduce
unemployment. Proper mentorship and training sessions are required to set up business, taxes
and its registration process for SMEs. This will assist in reforming and improvising intellectual
property rights. In this research there is focus on improvisation of youth entrepreneurship and
ways to reduce unemployment.
AIM: To analyse the methods which Malawi Government can implement to improvise Youth
entrepreneurship and for reducing Unemployment.
Research question-
What can Malawi Government do to improve Youth Entrepreneurship and reduce youth
unemployment?
TASK 1.2 Factors that contribute the process of successful research question
This is to ascertain suitable area of research, I am intending to emphasize on the elements
which Government is facing to reduce unemployment and enhance youth entrepreneurship. The
interest is related to my current role and management team. This research ensures motivation and
drive to achieve wide vision on the related topic. Delivery of change and identification of
motivating factors has also been core to my career which will help in the research work and
develop my knowledge and skills (Chirwa and Chinsinga, 2014). This research is important as it
would help me develop my skills and knowledge related to the topic. Research questions are
developed to change views and opinions along with motivation developed in workforce. In order
to deliver change in Malawi necessary skill sets are developed for rebounding of workforce.

Research Question:
What Malawi Government can do to improvise Youth entrepreneurship and reduce
Unemployment
Title: “Entrepreneurship Development in Malawi”
Problem
1. Factors affecting Youth Entrepreneurship.
2. Obstacles are faced by Malawi Entrepreneurs.
3. Measures taken by Malawi Government to improve Youth Entrepreneurship and reduce
youth unemployment.
Hypothesis
Currently Malawi is facing unemployment due to which Government is conducting various
programmes and sessions to bring out potential from Youth. The focus is on encouraging youth
to engage in entrepreneurship so that they can contribute in Malawi's economy.
Focus
According to the implemented measures of investigation for addressing this casual research
question, various methods are applied, practice and review has been taken into consideration
within Malawi Council that focuses on the promotion of youth entrepreneurship.
Time scale
From August 2018 to October 2018 with review research project will end with the end of each
stage. This monitoring will be done by Global Entrepreneurship Executives of Malawi.
Methodology
Relevant books, internet search and papers are used to utilise literature review. This
would further be support public sector, cloud research and various other specialist web data.
Focus groups and surveys of human resources department and management of Malawi Council
provides reliable data which is further analysed and used for research work (Phiri, 2015). Finally,
reliability and validity will be proved against these particular methodologies so that desired
result can be achieved. Sources data is analysed at every stage of information of data.
TASK 1.3 Justify research question
Rationale
I selected this question because I have a particular interest in this topic. It focuses on
critical issues and factors responsible for the unemployment of the Malawi's population.

Government should increase Vocational educational training and Technical Entrepreneurship
institutions for the development of the country. It is also responding to some of the gaps which is
related to the coordination of stakeholders in the sub sector. For it youth it is important to get
educated, to enter into the workforce and make respectable living for themselves and their
families. By setting up small enterprises, they would rather participate actively in the society and
would contribute to the national development by paying taxes (Phiri, 2016). Training to current
workforce would face some challenges to perform workforce skill sets audits and training
budgets.
TASK 2.1 Conduct research to find literature
The importance of Youth Entrepreneurship in Malawi
According to the Caporale and Gil‐Alana, (2018), entrepreneurs are important in order to
motivate, cultivate and remunerate national asset of Malawi. They change the face of economy.
Their innovations improve standard of living which results in creating wealth with their
entrepreneurial ventures. They also prosper society and create various types of job opportunities.
Entrepreneurs are also responsible for creating social change by offering new goods and services
and break away from tradition and indirectly support freedom by minimizing dependence on new
technologies and obsolete systems. This would further lead to greater economic freedom,
improved quality of life and morale. They continuously nurture ventures by other like-minded
individuals. They support to local charities and invest in community projects. New markets are
developed due to improved and innovative products, services or technology. Furthermore, it
results in higher earnings and increased employment which contribute to better national income
through tax revenue and greater government spending.
To analyse factors affecting youth entrepreneurship in Malawi
Malawians are struggling hard to earn enough money to improve their standard of living
and for this they are facing youth employment crisis. As per the view of Chigunta, (2017), in
2013, only 11.3% of the working population was in formal employment. Various factors like
social structure, age, attitude towards work, achievement and time and risk affect youth
entrepreneurship are affecting youth entrepreneurship in Malawi. Social structure is formed by
proportions, distribution and number in community. In Malawi society consists of middle class
and poor people mostly. Poor community do not have self-confidence and youth cannot believe
that they can reach at top. On the other hand, age also matters a lot for creating a full-fledged

environment of entrepreneurship. As compared to young individuals, elderly think that
businesses can be started only by youth. Similarly, Malawians do not have any urge to invest
neither society consider time as money.
Evaluation of the obstacles faced by Malawi Entrepreneurs.
There are various hurdles faced by Malawi Government to reduce unemployment and
promote entrepreneurship. According to the Mwatsika (2015), they meet lots of financial
problems to grow their businesses. This is because the country has not yet started promoting
SMEs because no one is interested in talking about them. Most inconvenient truth and striking
truth was the revelation from the Malawian banks for the definition of SMEs. Another factor that
can be considered is the lack of government support and political will to protect the intellectual
property of innovations and great ideas. Then, Malawian entrepreneurs are not getting possible
access in the international markets. They are regularly importing instead of exporting and
government is has not yet declared any policies to support any entrepreneurs and localised
organisations so that they can become stable with other counterparts in other African nations.
Lastly, most of Malawi entrepreneurs cannot write business plan properly. They do not know
what they have to do with their money. This is due to lack in the education system.
Effective measures to reduce unemployment by Malawi government
Government of Malawi is taking measures to reduce unemployment and improve youth
entrepreneurship. According to Scheepers, White and Kitimbo (2017), in order to drive
innovation and economic growth it has announced that Government will support small
businesses with the latest federal budget. Sessions would be conducted to initiate, organise and
operate their own businesses. Training of entrepreneurship would be done in the form of TEVET
system prepared by UNESCO under CAPEFA programme. It will hire new entrepreneurship
instructors for new community technical colleges (CTSc) and community skills development
centres (CSDCs) which are located in various parts of Malawi. By implementing policies that
match with training and education of employer, International Labour Organisation ILO reports
recommend that if young people are given fair chance at decent jobs then they can meet their
Millennium Development goals of fighting inequality and poverty. It will improve business
which a part of its scheme and focus on youth involvement for export of goods and services.

TASK 2.2 Undertake critical review of the literature
Various external sources are used to undertake this literature review. This includes
magazines, consultancies, data from institutes and journals. Reports were taken from Malawi
Labour Force Survey 2013. Findings from the National Statistical Office in association with the
Ministry of Labour and Ministry of Industry of unemployment rate and trade which is
economically active among population. Effectiveness of arguments have done in the literature
review. Organisation for Cooperation and development (OECD) has revealed that only 2.2 % of
the total youth is involved in the entrepreneurship programmes and public vocational skills due
to greater level of educational requirements (Guth and et.al., 2017). This can be argued as an
influence on studies that Government are less interested in supporting in providing education to
youth thereby, they decrease the number of enrolment in training programmes.
OECD, CSDC are some highly renowned organisations that provide interpretation,
studies, surveys and case studies of Malawi entrepreneurs which are relevant to the study.
Current document represents the changing environment of Malawi and its economy with full-
fledged information available for Local Authorities and information published in toolkit
materials, blogs and briefing reports. Some publications stress on the unemployment while others
focus on measures taken by the government to reduce unemployment. TEVETA has conducted
apprenticeship programmes in Malawi for successful entrepreneurship documentation and
women. It provides knowledge on loan services and conduct gender analysis. Focus is specially
made on the factors and barriers for improving youth entrepreneurship and reducing
unemployment. Literacy rate has been improved according to the statistics from last 20 years
now it is 72% among adults as compared to 48.5% in 1987 (Baah-Boateng, 2016). TEVETA on
the other hand graduates by the type of occupation and skills demanded by the industry. There is
positive enrolment in the field of Medicine, Applied Science and Environmental Science. It can
be argued that TEVET is negatively affected by the inadequacy of facilities and equipment’s,
shortage of training materials due to financial constraints and high quality teachers. There is lack
of infrastructure at both private and public universities which can be considered as a single
biggest constraint on expanding enrolment of students to higher education.
TASK 3.1 Evaluate techniques for use of quantitative data
Perfect and robust data is provided in a statistical form through quantitative method. This
data can be developed into vigorous and healthy manner. In this method questions are close

ended and data collection techniques are limited so it is not possible to develop answers as in
researchers do in an interview. It aims at gathering data which are numerical, mathematical that
includes surveys, questionnaires and then these data are manipulated using computational
techniques. Main features of quantitative data are that information is collected using research
tools. In order to analyse and extract rends/meanings information collected is carried out using
databases and use of computer models (Ugwuanyi and Ugwunta, 2017). From this techniques
possible solution to various business problems are derived. Tools used are could be
mathematics, statistics, economics and operational research.
Main aim of quantitative method is to categorise features, count them and build a
statistical model in order to explain the observation. Information is properly managed in non-
textual, charts and in graphical form. Whether it is quantitative or qualitative both data have to
be acceptable, effectual, faithful and safe. Firstly, research questions have to categorised and
approached in various forms so that undiscovered facts could be gathered. Information is
affected by presentation and is manipulated whether it is quantitative or qualitative. In this
research quantitative research questions are applied which are result of actual literature review
and research questions. Questionnaires and surveys are categorised by individuals and Local
authority of Malawi and various other departments. There was collection of unemployment rate
which is based on ILO definition (Dunga, 2014.). Malawi has ranked poor in Global
Entrepreneurship Index (GEI) which was released by Global Entrepreneurship and Development
Institute. GEI provides government leaders and policy makers worldwide to promote high-
impact business, high-growth and strengthen up digital ecosystem. It combines company's
entrepreneurial individual data like start up skills, risk acceptance and opportunity recognition.
This report is further revised, checked by superiors and cleansed. In this research large sample
size would be taken which will be based on the demographic and geographical factors of
Malawi. This approach helps in exploring numerical data which is statistically examined
because the researchers approach for correlation between variables.
TASK 3.2 Evaluate techniques for use of qualitative data
Qualitative data can be considered as costlier due to its subjective nature which is based
on observation instead of its statistical or mathematical nature. Qualitative research can be
considered as exploratory in nature and generates in-depth accounts from groups and
individuals. This method has intensive response and goes with open ended question. It provides

the depth of the study and within questionnaires and interviews open ended questions provide
wider understanding to possibly give a new direction to the research study. Data produced are
subjective and more structured which leads to evidence of current trends done by and
interpretation of transcripts that results needed validation. (Syden, 2014). Focus group is used to
obtain better information from a group instead of single individual. It is done with the limited
sample group and potential information gathered can make task more difficult for all participants
to interact and participate for the interviewer that make sense of the information provided.
Macro view of information is collected on Malawi Youth Entrepreneurship with leaders and
managers for investigation purpose. Open ended questions give space to discover and access
multiple answers. This may lead to depth and breadth of information.
Groups can be put together to get mindful dynamics of situation. Main aim of focus
group is to derive participants' perceptions, opinions and feelings. Cost and time are two
constraints in project management plan that could change its structure. In order to get perfect
interview and statistical data, travelling cost could increase the budget. Thus, proper time
management is required.(Akinboade, 2015). Personal computer systems and advanced
technologies can be used to save the database. This also helps to identify loopholes in the
research work. This research would include descriptive nature of information that would be done
through survey and open ended questions are asked to get accurate information. Complete data
is collected and evaluated under the guidance of researchers and specific professionals.
TASK 4.1 Evaluate research methodologies for research question
Research question selected for this project are meant to test methodologies and kind of
procedure adapted in entire work process. But this study has some restrictions with it and
methodologies applied have to face some limitations (Scheepers, White and Kitimbo, 2017).
Scope, risk, time and capacity involved should be transparent and brief for the investigation work
because it will definitely need some information from higher authorities and departments of
Malawi. Their interests are engaged and appropriate time is taken to ask research questions and
to complete surveys. Another limiting factors are cost and scope in which study would be based
on the utilisation of software and would involve cost of conducting a survey which will consist
of materials and other tangible things. Results will be further documented in an objective manner
that are collected from the managers of Youth Entrepreneurship of Malawi (Brooks and Loftus,
2016). There wouldn't be any requirement of logical software. This can be further categorised

and visualised through graphs, range of tables and presentations done through images and
availability of records which will help to analyse the data quantifiable answers are given in
research seeks confirm hypothesis. In qualitative method information developed is subjective in
nature that generates a degree of deviation that would recognize new approaches in the project.
After completion of survey data will be statistically formulated and communicated under
strict rules and regulations. It helps in creating a series of data and visual depiction of related
trends but some technologies are restricted and more manual which is adopted to influence time
and cost. Significant amount of descriptive data is enables comparisons and analyse associations
of information from sample of population taken. Then, research design is used to define the
study type in which Explanatory method is conducted which is not well researched previously
and aims at focussing various aspects of the study (Anyanwu, Erhijakpor and Obi, 2016). It
provides more conclusive evidence as well as researchers analyse problems with a varying level
of depth. Interviews provide opportunity to create more structure conversation and ask open
ended qualitative questions but searching could lead to change in the direction of study.
Observation are taken place on effective workstation and behaviours of respondents are reported.
Research use their consciousness to analyse situations for prolong engagement. It includes
checklists, interviews of various sorts and different unobstructive methods.
TASK 4.2 Choose appropriate methodology for research questions
Hypothesis
Presently Malawi is facing unemployment and Government is conducting various programmes
and sessions to bring out potential from Youth. It wants to engage them in entrepreneurship so
that they can contribute in Malawi's economy.
Focus:
Malawi Council emphasize on promotion of youth entrepreneurship and its development. This
research is applied and reviewed to manipulate these research questions so that work can be
further examined.
Research Questions
1. What can Malawi Government do to improve Youth Entrepreneurship and reduce
youth unemployment?
According to the above question below literature review has been done.
SURVEY

According to the survey done in Malawi, a quantitative data is developed that would
enable analysis of the highest entrepreneurial activity rates among 69 Global Entrepreneurial
Monitor carried out in 2012. According to report of national statistical Office and ILO in 2013
only 11.3% of the working population was in formal employment (Suckall and et.al., 2015).
They were just concerned for earning their own selves and specially with changing Malawi's
condition and society. According to My World Survey young Malawians expressed their interest
in better job opportunities, education, healthcare, affordable and nutritious food to access
sanitation and clean water.
REVIEW
R evaluating on the need of development of entrepreneurs of youth in Malawi would provide
quantitative analysis on whether it supports description of Youth Entrepreneurship identifies the
needed management proficiency.
OBSERVATION
Observation in Malawi will recognise if questions of research and methodologies would
let the research operations know that skills and resilience of authorities of Malawi Government.
This observation would aim at training process, challenges, peer support and appreciated
procedures. (Aleksynska, 2015).
FOCUS GROUP
Focus group involves leaders and professionals that would develop qualitative
information to support further review of paperwork and observation. Literature study highlighted
provides the ideas and knowledge about the research question. It creates area of concern and
generates an outline that helps to determine the current thinking of the project work.
TASK 4.3 Justify methodology selected for research question
SURVEY
Survey done in this project was useful in explaining the characteristics of accurate of the
topic. It allows respondents to answer with more valid and candid answers. The data developed
through ILO can be compare through the survey done by Malawi Labour Force Survey (MLFS).
Total of 5.5 million people were employed which can be considered as 80 % (Yiheyis and
Cleeve, 2016). On the other hand, unemployment among economically active population in
Malawi based on ILO is 21%.
REVIEW

R evaluating on the Youth Entrepreneurship consideration, the way procedures and
expected entrepreneurs are able to recognize their skill sets are determined. Information is
gathered through live entrepreneurship programmes else old records are considered which
requires time to compare with the current records.
OBSERVATION:
Observations require high cost, travelling and are time modifier which could be organised
with some groups in order to minimize travel costs and time across Malawi. It also includes
questions asked during interview and some other tools and techniques that focuses on the
methods which Malawi Government is taking to empower Youth Entrepreneurship.
FOCUS GROUP
Focus group consists of experienced participants, leaders and some researchers who support the
problems being analysed within the study. Main points are highlighted in the literature review
and factors of Youth Employment is taken into consideration.
TASK 5.1 Record findings, literature review and methodology
The studied report provides basic knowledge of Malawi's views on Youth
Entrepreneurship and information that would provide the summary, description and evaluation of
every source. Useful report will be presented in the form of presentation with proper
introduction, main body describing factors and conclusion to the business partners and
shareholders which will give the essence of the topic (Makoza, 2017). It will also include
purpose of conducting the research. Aims, research question and discovered facts would be
completely reliable and valid from people's point of view. Confidentiality of information would
be drawn out which will be considered for long term.
TASK 5.2 Summarise the findings using suitable methods
Following details are drawn out by summarising specific arguments, information and content:
1. Large proportion of Youth in Malawi in 2014 had not completed primary-level education
and many young men and women are not benefited by educational system. Almost 49.3
% of Youth in rural areas had less than primary education as compared to urban areas.
2. Government has adopted various strategies and policies for the education and skills for
Malawi's development and Youth Entrepreneurship. TEVETA Strategic Plan specifies
strategic planning for vocational and technical skill development (Trinitapoli, Yeatman

and Fledderjohann, 2014). It graduates youth with high job quality and employers are
satisfied with its skills.
3. Access to market integration and financing are main challenges upon start-up for youth
entrepreneurs. These are the main constraints because only 6.4% get start-up capital
through personal loans or business. Others rely on informal sources to start up like family
and friends.
TASK 5.3 Present the findings using suitable methods
Main elements of the report are as follows:
1. Title
2. Introduction
3. Research Question
4. Rationale
5. Literature Review of project
6. Methodologies followed in research
7. Collection of data
8. Conclusion
9. Recommendation
TITLE: “Entrepreneurship Development in Malawi”
Introduction
This report describes various aspects of Youth Entrepreneurship in Malawi. It follows a
specific structure with introduction of topic, objectives and rationale which describes the reason
of doing research work, literature review, various methodologies, findings and finally conclusion
of the report.
Literature Review
Literature review focuses on the factors and barriers which young people are facing in Malawi
and all types of measures that Government has taken to bring out the potential in them.
Data collection
Complete data collection is dependent on surveys and information available from both
qualitative and quantitative process. Evidence demonstrates the answers of the research
questions.
Conclusion

Conclusion is in favour of the hypothesis and the topic. Government and various other bodies are
putting their best efforts to provide education to Youth of Malawi.
Recommendations
Based on the evidences from this study, significant gaps could be identified in literature and
future work should be done by applying certain policies.
TASK 5.4 Critically analysing the collection of data
Assessment has been done to identify difficulties and challenges faced by Malawians.
But Government also lacks some facilities regarding educational programmes. In order to
facilitate effective and efficient searching of huge amount literature listing of databases should
have been done. (Hilson and Osei, 2014) Some area and region of Malawi was uncovered.
Therefore, some data was missed by professionals in research groups. Through this research
distinction, worth, excellence and goodness of information have been discovered. All researchers
were open minded and fixed a set of standards. Therefore, the information has been presented
with valid justification by the permission of Malawi Authorities.

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Online
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