Private equity (PE) is recognized globally as a key driver of economic growth. Apart from providing capital to businesses, PE provides the expertise needed for their growth. Despite its great potential, the PE industry continues to struggle, especially in developing countries like Zambia. The aim of this study was to establish factors limiting PE contribution to economic growth in Zambia. The study was qualitative in nature and targeted fund managers at both local and international PE firms. An online open – ended questionnaire was used to collect data from respondents. 13 fund managers from 11 PE firms (Both local and international) agreed to take part in the study. 13 questionnaires were filled out and submitted. The collected data was analyzed by identifying common themes in the participants’ responses and conclusions drawn with the guidance of the research questions. The study found that the Zambian PE industry contributes to economic growth through creation of new jobs, fostering innovation, tax contributions and helping companies grow. The study also revealed that the PE industry is still underdeveloped despite the country having great investment opportunities in sectors like tourism, agriculture, healthcare, manufacturing and retail. The main challenges facing PE identified in the study include the immature regulatory framework, underdeveloped PE culture, currency risk, limited investment opportunities and exit challenges. In conclusion, the study has noted that the Zambian PE industry is still underdeveloped and faces a lot of challenges. The study recommends raising awareness of PE among local businesses and other key PE players through educational campaigns.
| Published in | International Journal of Accounting, Finance and Risk Management (Volume 7, Issue 4) |
| DOI | 10.11648/j.ijafrm.20220704.14 |
| Page(s) | 164-173 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
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Copyright © The Author(s), 2024. Published by Science Publishing Group |
Private Equity, Venture Capital, Challenges, Economic Growth, Zambia
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APA Style
Evaristo Chanda, Shem Sikombe. (2022). Private Equity and Factors Limiting Its Contribution to Economic Growth in Zambia. International Journal of Accounting, Finance and Risk Management, 7(4), 164-173. https://doi.org/10.11648/j.ijafrm.20220704.14
ACS Style
Evaristo Chanda; Shem Sikombe. Private Equity and Factors Limiting Its Contribution to Economic Growth in Zambia. Int. J. Account. Finance Risk Manag. 2022, 7(4), 164-173. doi: 10.11648/j.ijafrm.20220704.14
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Download@article{10.11648/j.ijafrm.20220704.14,
author = {Evaristo Chanda and Shem Sikombe},
title = {Private Equity and Factors Limiting Its Contribution to Economic Growth in Zambia},
journal = {International Journal of Accounting, Finance and Risk Management},
volume = {7},
number = {4},
pages = {164-173},
doi = {10.11648/j.ijafrm.20220704.14},
url = {https://doi.org/10.11648/j.ijafrm.20220704.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20220704.14},
abstract = {Private equity (PE) is recognized globally as a key driver of economic growth. Apart from providing capital to businesses, PE provides the expertise needed for their growth. Despite its great potential, the PE industry continues to struggle, especially in developing countries like Zambia. The aim of this study was to establish factors limiting PE contribution to economic growth in Zambia. The study was qualitative in nature and targeted fund managers at both local and international PE firms. An online open – ended questionnaire was used to collect data from respondents. 13 fund managers from 11 PE firms (Both local and international) agreed to take part in the study. 13 questionnaires were filled out and submitted. The collected data was analyzed by identifying common themes in the participants’ responses and conclusions drawn with the guidance of the research questions. The study found that the Zambian PE industry contributes to economic growth through creation of new jobs, fostering innovation, tax contributions and helping companies grow. The study also revealed that the PE industry is still underdeveloped despite the country having great investment opportunities in sectors like tourism, agriculture, healthcare, manufacturing and retail. The main challenges facing PE identified in the study include the immature regulatory framework, underdeveloped PE culture, currency risk, limited investment opportunities and exit challenges. In conclusion, the study has noted that the Zambian PE industry is still underdeveloped and faces a lot of challenges. The study recommends raising awareness of PE among local businesses and other key PE players through educational campaigns.},
year = {2022}
}
TY - JOUR T1 - Private Equity and Factors Limiting Its Contribution to Economic Growth in Zambia AU - Evaristo Chanda AU - Shem Sikombe Y1 - 2022/12/27 PY - 2022 N1 - https://doi.org/10.11648/j.ijafrm.20220704.14 DO - 10.11648/j.ijafrm.20220704.14 T2 - International Journal of Accounting, Finance and Risk Management JF - International Journal of Accounting, Finance and Risk Management JO - International Journal of Accounting, Finance and Risk Management SP - 164 EP - 173 PB - Science Publishing Group SN - 2578-9376 UR - https://doi.org/10.11648/j.ijafrm.20220704.14 AB - Private equity (PE) is recognized globally as a key driver of economic growth. Apart from providing capital to businesses, PE provides the expertise needed for their growth. Despite its great potential, the PE industry continues to struggle, especially in developing countries like Zambia. The aim of this study was to establish factors limiting PE contribution to economic growth in Zambia. The study was qualitative in nature and targeted fund managers at both local and international PE firms. An online open – ended questionnaire was used to collect data from respondents. 13 fund managers from 11 PE firms (Both local and international) agreed to take part in the study. 13 questionnaires were filled out and submitted. The collected data was analyzed by identifying common themes in the participants’ responses and conclusions drawn with the guidance of the research questions. The study found that the Zambian PE industry contributes to economic growth through creation of new jobs, fostering innovation, tax contributions and helping companies grow. The study also revealed that the PE industry is still underdeveloped despite the country having great investment opportunities in sectors like tourism, agriculture, healthcare, manufacturing and retail. The main challenges facing PE identified in the study include the immature regulatory framework, underdeveloped PE culture, currency risk, limited investment opportunities and exit challenges. In conclusion, the study has noted that the Zambian PE industry is still underdeveloped and faces a lot of challenges. The study recommends raising awareness of PE among local businesses and other key PE players through educational campaigns. VL - 7 IS - 4 ER -
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