Business Regulations and the Survival of Retail Startups in Kalingalinga: An Exploratory Case Study

Abstract

This study delves deep into just how specific business regulations affect the survival of retail startups in the area of Kalingalinga, a high-density area located in Lusaka, Zambia. Through the utilization of a qualitative case study approach, the research focused specifically on the day-to-day regulatory challenges that were faced by small retail entrepreneurs in the area. Furthermore, data was also pulled from interviews and observations, as well as field notes from a sum of 18 retail owners at saturation point who owned or used to own retail businesses. Additionally, the study showed that most of these retail startup owners ran their businesses without formal setups and did not have any knowledge regarding the correct steps required for legal licensing and tax regulations. Moreover, these regulatory burdens often discouraged formal registration and led to the creation of barriers to accessing resources as well as participating in public programs. Moreover, even though many retailers in Kalingalinga did not have a clear comprehension of formal processes, they continued to operate using informal strategies in order to avoid regulatory pressures. Regardless of the challenges faced, participants showed a strong commitment to staying afloat during these hard times. This qualitative case study suggests that simplifying procedures and improving communication around tax and licensing, as well as recognizing the role of informal entrepreneurs in policy discussions, helps support retail startup survival in low-income communities.