By Tatenda Nyachega

CEOART Head of Economics and Intelligence Unit

The term ‘Business Environment’ is broad and encompasses several factors and variables. The business environment is the total of all external and internal factors that influence a business. One should keep in mind that external factors as well as internal factors can influence each other and work together to affect the business environment. In the same manner, there are various stakeholders involved in establishing and sustaining a desirable business environment. These stakeholders include the Government/policymakers, the media, business owners/shareholders, employees, suppliers, customers, competitors, and financial institutions.

It is imperative to understand the dynamics of a business environment as this will help to prevent duplication of roles and reduce the ‘blame game’ as has been portrayed in difficult circumstances, with the Government pointing fingers at businesses as the main driver of change whilst on the other the business calls for shorts which may be beyond the Government/Policymakers’ jurisdiction. It is in this spirit, that we ought to define the roles of key players in sustaining a desirable business environment in Zimbabwe.

The first point of call is on the need for genuine entrepreneurs/owners/shareholders: These provide the financial resources and capital needed to start and sustain a business. They have a vested interest in the profitability and long-term viability of the business. Their role is to provide strategic direction, make major decisions, and ensure that the business operates in a manner that maximizes its return on investment. With all facets well placed, these generate foreign exchange through the exportation of goods and services. They are the key drivers of economic development as well as the custodians of technological advancements in any economy.

Secondly, regardless of the digitalization drive across the globe, human capital remains a critical component. People are crucial stakeholders who contribute their skills, knowledge, and labor to the business. They play a key role in executing the business strategy and delivering products or services. Employees need to be motivated, engaged, and well-trained to perform their roles effectively. Their satisfaction and well-being are important for the sustainable growth of any business. In this day and era, the call to this group is that they must ensure that they move with the times by embracing new technologies and continuously upgrading their knowledge and skills.

The phrase, “ease of doing business,” is often referenced by various stakeholders in their plea for a favorable business environment. Thus, it would not be a complete call if we do not touch on the role of the Government or policymakers: The government or policymakers play a significant role in creating and maintaining a favorable business environment. It sets laws, regulations, and policies that govern business operations. Government agencies provide support, services, and infrastructure that enable businesses to operate efficiently. They also enforce regulations to protect consumers, ensure fair competition, and maintain market stability. Thus, with the rampant increase in governance-related challenges such as corruption and mismanagement of resources – a clear indication of weakening policy, law, and regulatory frameworks – for a business to thrive, the call to the Government or policymakers is to up the game and ensure that all loopholes that lead to leakages on the business environment front are addressed.

The popular adage that “Customer is the king,” is a clear indication that they are the lifeblood of any business. They provide revenue and drive demand for products or services. Businesses must understand and meet the needs and expectations of their customers to remain competitive and sustainable. Building strong customer relationships and delivering value is vital for long-term success. On the other hand, the power of the customers is a determinant of several factors such as government policies, labor market dynamics, and other key external factors.

Outside the above-mentioned stakeholders, which are enablers of a sustainable business environment, it is also important to the crucial roles and functions played by suppliers, the community, the global market, competitors, and financial institutions as they are all hugely significant to the sustainable operations and functioning of a business environment.

These are just key stakeholders in a business environment. The roles and importance of stakeholders may vary depending on the specific industry, organizational structure, and business model. Effective stakeholder management is essential to sustaining a positive business environment and achieving long-term success. However, it is always imperative to have a clear appreciation of the business environment and the associated stakeholders as this enhances informed decision-making, adaptation to change, opportunity identification, risk management, and stakeholder management.