Security challenges on business and economy: „Entrepreneurship in a fragile state of Burundi”

Abstrakt

Background: Burundi is a country which has been deeply affected by political instability, and low-intensity conflict causing a lack of jobs, slowing economic recovery, and poverty reduction with entrepreneurship playing a vital role in most Burundian entrepreneurs’ survival (IFC, 2022; Nintunze, Bigirimana, 2021). Nkurunziza (2022) argues that state fragility in Burundi is caused by poor strategies and policies of its political leaders, who are motivated by personal interests, such as state rent extraction which maintains a lack of security. Nziku and Bikorimana (2024) comment on poor policies and strategies that are gender blind and not fit for the purpose and lack support. The purpose of this study is to critically investigate the impact of security challenges on entrepreneurship in the fragile state of Burundi. To achieve this aim, researchers have designed three research objectives: a) to examine how the security challenges affect entrepreneurship in this fragile country post-conflict; b) to explore the strategies employed by entrepreneurs to start and grow their ventures; c) to provide key recommendations for policymakers to enhance peace, security, and good governance. Such actions can help to achieve stability and peacebuilding for all Burundians. The originality of this study lies in the investigation of security challenges faced by Burundian entrepreneurs due to state fragility. State fragilities are perceived as major barriers to entrepreneurship development because they add additional constraints and restrict the growth of ventures and entrepreneurs reaching their full potential.

Research purpose: A qualitative study was conducted in Burundi using institutional theory (North, 1990 and Scott, 2003) with empirical data from semi-structured, face-to-face interviews with 20 respondents including 2 stakeholders. The interviews were conducted in two cities, Bujumbura capital and Cibitoke Province, less developed compared to other Provinces of Burundi. The study used a purposive sampling method to recruit 15 respondents (Ilker et al., 2016) and 5 interviewees using the snowball method (Saunders et al., 2016). The interviews were conducted in Kirundi (the national language of Burundi), audio-recorded, translated to English then transcribed using a Word document. A six-step thematic framework for data analysis was used in data analysis (Braun, Clarke, 2017).

Findings and discussions: The findings of this study revealed that many Burundian entrepreneurs are affected by the lack of security, weak business environment and slow economic growth, lack of durable peace, poor governance, and lack of institution support. Addition challenges were linked to lack of finance, poor infrastructure, poverty, poor market penetration and lack of management and technical skills. Behind those challenges, many women, and young entrepreneurs face challenges due to lack of access to property ownership, and jobs to enter entrepreneurship. Other barriers faced by women in Burundi were related to gender inequality, violence, lack of education, low market, lack of suppliers, and lack of business support (Nintunze, Bigirimana, 2021). The result of this study found that Burundian entrepreneurs used different strategies to survive while trading in fragile states post-conflict and building resilience. Recommendations for peace dialogue to resolve conflicts, maintain peace, build social cohesion and better communication between different members of society. Researchers in this study recommend Burundian government focus on reforming its institutions, building, and restoring infrastructures, reinforcing regulation, providing better access to finance, developing human capital and markets as well and tackling corruption. The novelty of this study lies in the contributions to the literature related to security challenges for Burundi, a country which remains under-researched.