Vol. 10 No. 1(J) (2018)

The Zimbabwean economy has nose-dived since the long decade era of hyperinflation resulting in serious economic depression, extreme poverty and unemployment. Regrettably, lack of an entrepreneurial culture has become a huge obstacle to the resuscitation of the economy. Developing inclusive business models incorporating livelihood opportunities for social bottom line has long been suggested as the solution for economically distressed less developed nations facing high levels of unemployment. This study sought to explore factors that disincentivise Zimbabweans from seeking and initiating value creating business opportunities that are low income inclusive and further presents strategies to infuse an entrepreneurial investment culture. It adopts the survey design approach in collection of data. The study identifies lack of skills and knowledge, lack of access to financial markets, unfavorable business environment and regulatory system, perceived high risk and poor infrastructure as the main impediments to the integration of the poor communities in to the value chain.

The financing decisions of banks remain an enigma, increasingly attracting the attention of banking regulators and corporate finance scholars alike. The ‘buffer view’ of bank capital is premised on the notion that banks keep capital in excess of the regulatory requirements in line with bank specific factors. This study sought to test the ‘buffer view’ of bank capital. Utilising a sample of 16 South African banks for the period 2006-2015, panel data techniques were employed to estimate a fixed effects model to test the relationship between buffer capital and the firm level determinants of capital structure. It was established that the risk and size variables were negatively related to the buffer capital variable, whilst the dividend variable was positively related. This was consistent with the predictions of the buffer view of capital. The findings lend credence to the ‘buffer view’ school of thought about bank capital. These findings are also inconsistent with bank capital regulations solely determining the capital structures of banks but epitomises some measure of voluntary capital structure decision making by banking firms.