The Sustainability of Indigenous Retail Enterprises: An Ethnographic Comparative Study of Zambian and Foreign-Owned Minimarts

Abstract

This ethnographic study, conducted over three years (December 2022–December 2025) in Lusaka and peri-urban areas, including Mumbwa, Katuba, and Chongwe, investigates the factors influencing the sustainability of Zambian-owned retail enterprises compared to foreign-owned minimarts, primarily operated by East African migrants from Rwanda, Tanzania, Burundi, and Kenya. Drawing on participant observation, semi-structured interviews with 10 enterprise owners and 20 customers, and thematic analysis following Braun and Clarke's (2006) framework, the research reveals stark disparities in business longevity: over 70% of Zambian-owned small and medium enterprises (SMEs) in retail fail or remain static within their first few years, while foreign minimarts demonstrate resilience through systematic reinvestment and network support. Key findings highlight differences in economic embeddedness and moral economies. Foreign minimarts leverage transnational ethnic networks for pooled capital, disciplined labor, and reinvestment norms, aligning with capitalist accumulation. In contrast, Zambian-owned shops are embedded in local kinship systems that prioritize redistribution for household survival (e.g., education, healthcare, funerals), constraining growth. Trust deficits further undermine local collective initiatives like village banking, leading to frequent collapses. The study challenges conventional explanations focused on finance or skills deficits, arguing that sustainability hinges on institutional and cultural alignments. It advocates for policy shifts toward trust-building, capital protection mechanisms, and culturally sensitive training to bolster indigenous retail viability. This contributes to African economic anthropology by reframing "failure" as a product of moral-economic misalignment rather than individual shortcomings.