Enhancing public-sector entrepreneurship: Evidence from Zimbabwean parastatals

Abstract

Background: Public-sector entrepreneurship is increasingly recognised as a key driver of innovation and performance in state-owned enterprises (SOEs). However, many SOEs face challenges such as bureaucratic inertia, financial constraints, and regulatory rigidity, limiting their ability to implement entrepreneurial strategies effectively.
Aim: This study develops a conceptual model of public-sector entrepreneurship, grounded in empirical evidence from Zimbabwean parastatals, to examine how entrepreneurial strategies can enhance organisational performance.
Setting: The research focuses on two Zimbabwean parastatals, the National Railways of Zimbabwe (NRZ) and the Traffic Safety Council of Zimbabwe (TSCZ), both of which are strategically important and engaged in ongoing reform efforts to improve efficiency and service delivery
Methods: A qualitative multiple-case study approach was employed, using semi-structured interviews with key stakeholders. The study identified five core dimensions of public-sector entrepreneurship: policy innovation, corporate innovation, risk-taking, opportunity-seeking, and strategic renewal.
Results: The findings indicate that entrepreneurial strategies can improve efficiency, service delivery, and financial sustainability in parastatals. However, challenges such as bureaucratic inertia, financial constraints, and regulatory rigidity can constrain full implementation.
Conclusion: Public-sector entrepreneurship plays a crucial role in enhancing the performance of SOEs, but structural and regulatory barriers must be addressed. Policy reforms, leadership development initiatives, and innovation-driven frameworks are essential for embedding entrepreneurship in Zimbabwe’s public sector.
Contribution: This study contributes to the literature by proposing a conceptual model of public-sector entrepreneurship tailored to resource-constrained environments. The model serves as a strategic guide for policymakers and SOE leaders to foster resilience and sustainability.