IJEBD (International Journal of Entrepreneurship and Business Development)

Cracking the Financing Gap: How Informal Traders in Zimbabwe are Bridging the Banking Divide

Bronson Mutanda — 2026-01-31

In Zimbabwe, informal traders face significant barriers in accessing formal financial services, hindering their ability to grow and sustain their businesses. However, these traders are finding innovative ways to bridge the banking gap by leveraging alternative financial services. The paper investigates alternative financial services leveraged by informal traders in Zimbabwe. Quantitative results reveal that majority of informal traders in Zimbabwe are financially excluded and rely heavily on informal financial services such as mukando/revolving funds, chimbadzo/interest bearing informal loans, personal savings, trade credit, business angels, burial society group loans and loans from friends and relatives. Quantitative results further revealed that informal traders in Zimbabwe leverage private strong rooms, mukando/revolving funds and cryptocurrencies for savings and investments. Furthermore, qualitative results revealed that informal traders in Zimbabwe also save and invest through the gaba scheme and informal deposit taking financial institutions. Based on research findings, the study concludes that informal traders in Zimbabwe are financially excluded and rely on informal financial services. This underscores the necessity for a collaborative and multi-faceted approach among policymakers, stakeholders, and industry experts to effectively integrate the informal sector into the formal financial system. The research recommends the introduction of customised financial products, simplification of loan and bank account application procedures, introduction of AI augmented bank accounts, consultative meetings between policy makers and representatives of informal traders and introduction of mobile banking vehicles with automated teller machines.

An Assessment of the Productivity Challenges Experienced by Manufacturing Small Micro Medium Enterprises During Lockdown

SINAKHOKONKE MPANZA — 2026-01-31

The focus of this study was to examine productivity issues experienced by small, medium and micro enterprises (SMMEs) in the manufacturing sector in Ekurhuleni Municipality during COVID?19 lockdown restrictions, more particularly focusing on internal and external environment factors influencing the productivity challenges in manufacturing SMMEs.The research also sought to identify and investigate internal and external environmental variables that affected the productivity and sustainability of manufacturing SMMEs in Ekurhuleni Municipality. The study showed a clear distinction between the importance that was placed on having access to technological production management tools, and knowledge of internal and external factors affecting productivity. In addition, this study confirmed that South African SMMEs confront significant difficulties in the context of small businesses. A simple random sampling method was used to select the respondents. A total of 300 questionnaires were distributed to the target population with 223 questionnaires being completed and returned. The questionnaire was used to determine manufacturing SMMEs’ perceptions of their companies’ access to technological production management equipment and their knowledge of the company’s internal and external elements. Based on the empirical findings, the study identified that both internal and external environmental factors such as size of the firm, firm age, resources for training needs, technology and government support have a critical influence towards the productivity challenges faced by SMMEs. It is recommended that a study be conducted to investigate the impact of manufacturing SMMEs’ productivity on their business performance, growth and sustainability.

How AI Impacts Entrepreneurs’ Psychology: Self-Efficacy, Technostress, Dependency, and Work Engagement (A Literature Review)

Harsha Ravindran — 2026-01-31

The rise of artificial intelligence (AI) presents entrepreneurs with unique yet significant psychological challenges and opportunities that remain underexplored. This literature review examines the impact of AI adoption on entrepreneurs’ psychological well-being, performance, and work engagement, addressing the question: What are the psychological effects of AI adoption on entrepreneurs? It builds on existing psychological theories regarding entrepreneurship and the rise of new technologies,, such as technostress and burnout, while narrowing the focus to the emergent field of AI and its impact on founders. Given that scholars have expressed that negative founder mental health correlates with poor business performance, examining how AI affects the psychological states of entrepreneurs is essential for the flourishing of both individuals and their startups.

Using a narrative synthesis of 39 studies, this paper categorizes findings into four key themes: Self-Efficacy, Mastery, and Confidence; AI Dependency and Automation Bias; Technostress, Burnout, and Anxiety; and Work Engagement. Findings indicate that AI tools can enhance entrepreneurs’ self-efficacy, confidence, and decision-making by lowering barriers to entry and reducing cognitive load (e.g., streamlining tasks and providing data-driven insights), particularly for diverse and underrepresented founders. At the same time, over-reliance on AI fosters dependency, automation bias, and diminished critical thinking, while both under- and over-use of AI correlate with heightened technostress, anxiety, and burnout. The relationship between AI adoption and work engagement appears two-fold: moderate use enhances productivity and focus, while excessive or minimal use undermines satisfaction and resilience. These findings underscore that entrepreneurs’ psychological outcomes depend on how they navigate AI’s capabilities and limitations, highlighting the need for balanced adoption strategies. Future research should examine longitudinal effects, individual differences, and targeted interventions to mitigate adverse outcomes and support founders’ well-being in an AI-driven entrepreneurial landscape.

Application of the Principles of Good Faith and Pacta Sunt Servanda in Unequal Construction Contracts: A Case Study of B2B Developer–Contractor

Augustinus Setijanto — 2026-01-31

The legal relationship between developers and contractors in business-to-business (B2B) construction contracts in Indonesia often shows a significant imbalance of power. Although formally the contract is made based on the principle of freedom of contract, substantively the legal relationship often deviates from the principles of fairness and balance that form the basis of contract law. This paper examines the application of two fundamental principles in contract law, namely good faith and pacta sunt servanda, which means that every agreement made legally is binding on the parties who made it (Article 1338 paragraph (1) of the Civil Code) in the practice of biased construction contracts, particularly when developers modify FIDIC standard contracts by removing or limiting clauses that are detrimental to their interests, such as the Dispute Avoidance/Adjudication Board (DAAB), the right to an extension of time (EoT), and the right to suspend payment.

This study uses a normative-juridical approach with case and comparative analysis methods, examining actual practices between developers and contractors experiencing delays, variation orders, and payment delays. The results of the analysis show that the removal of these protective mechanisms not only creates the potential for structural default but also constitutes a violation of the principle of good faith in the implementation of contracts as stipulated in Article 1338 paragraph (3) of the Civil Code. Meanwhile, the pacta sunt servanda principle cannot be applied absolutely if the substance of the contract contains a striking imbalance and violates propriety (Article 1339 of the Civil Code).

This paper offers an update in the form of a reinterpretation of the principle of good faith as a corrective instrument against exploitative clauses, as well as a proposal for the establishment of a national DAAB institution with proportional costs to uphold contractual justice. Thus, the application of contract law in construction contracts must be directed towards substantive balance and a fair relational relationship between developers and contractors, so that national development objectives can be achieved without causing protracted disputes.

Factors Affecting the Financial Performance of the Samarinda City Regional Government

Suci Lestari — 2026-01-31

Purpose: This study aims to analyze the effect of the effectiveness ratio and efficiency ratio on the financial performance of the Samarinda City Regional Government, as well as to test whether the regional financial independence ratio plays a mediating variable in the relationship between the ratio of effectiveness and efficiency to financial performance.

Design/Methodology/Approach: The research uses a quantitative approach with the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method using the SmartPLS application. The data used is secondary data in the form of a report on the realization of the Samarinda City Regional Budget for 2016-2024 obtained from the Regional Financial and Asset Management Agency (BPKAD) of Samarinda City. The variables analyzed included the effectiveness ratio, efficiency ratio, independence ratio, and regional financial performance.

Findings: The results showed that: (1) the effectiveness ratio had a not significant effect on the independence ratio; (2) the efficiency ratio has a significant effect on the independence ratio; (3) the independence ratio has a significant effect on financial performance; (4) the effectiveness ratio has a significant effect on financial performance; (5) the efficiency ratio has a significant effect on financial performance; (6) the effectiveness ratio has a insignificant effect on financial performance through the independence ratio; and (7) the efficiency ratio has a significant effect on financial performance through the independence ratio. These findings confirm that fiscal efficiency and independence play an important role in strengthening regional financial performance.

Research limitations/implications: This study is limited to one area, namely Samarinda City, so generalization of results to other regions needs to be done carefully. The observation period only covers 2016–2024 using APBD ratio data, so it has not accommodated non-financial factors as well as institutional and governance aspects that can also affect financial performance. In addition, the use of secondary data makes researchers dependent on the completeness and accuracy of local government financial statements.

Practical implications: The results of the study provide implications for the Samarinda City Government and other local governments that improving spending efficiency and strengthening financial independence—for example through optimizing Regional Original Revenue (PAD) and reducing dependence on transfer funds—can drive better financial performance. Local governments need to design strategies to increase the effectiveness and efficiency of APBD management simultaneously, accompanied by policies to strengthen the independent income base, so that financial performance becomes more sustainable.

Originality/value: This study provides novelty value by examining the mediating role of the independence ratio in the relationship between the ratio of effectiveness and efficiency to the financial performance of local governments in the context of Samarinda City with the latest data for the 2016–2024 period. The SEM-PLS approach used allows for simultaneous testing of direct and indirect relationships, thus providing a more comprehensive understanding of how effectiveness, efficiency, and fiscal independence interact in shaping the financial performance of local governments.

Paper type: Research paper

Legal Risks of Land Use and Spatial Planning in Development by Private Developers and Contractors in Indonesia: Normative Analysis, Case Studies, and FIDIC Contract-Based Mitigation Strategies

Augustinus Setijanto — 2026-01-31

This article aims to comprehensively analyze the legal status of land use and spatial planning as a source of legal risk in construction projects, as well as its implications for private developers and contractors. This study uses a normative legal research method with a statutory, conceptual, and case study approach, by examining relevant laws and regulations, legal doctrine, and court decisions, including Supreme Court Decision Number 3053 K/Pdt/2011 and an apartment development dispute at the West Jakarta District Court. The results of the study indicate that land rights are not absolute and are always limited by spatial planning provisions as a public legal instrument. Weak synchronization of the RTRW/RDTR, zoning changes, and low internalization of the social function of land in development practices are dominant factors in the occurrence of disputes and project terminations. This study also found that contractors can no longer be positioned solely as technical implementers, but rather as active subjects of spatial planning compliance who potentially bear legal risks if they continue to carry out work that conflicts with spatial designations.
These findings and proposals are expected to strengthen legal certainty, improve project
governance, and minimize disputes in private sector development.

Profitability Ratio Analysis to Measure Financial Performance

Melinda Handayani — 2026-01-31

Purpose: This research aims to evaluate the profitability ratios of companies in the Food and Beverage sector listed on the Indonesia Stock Exchange (IDX) from 2021 to 2024. The study specifically focuses on analyzing the Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Gross Profit Margin (GPM) as key indicators of financial performance.

Design/methodology/approach: The study employs a quantitative analysis using financial data from annual reports of publicly listed Food and Beverage companies. Profitability ratios are calculated for each company over the four-year period and analyzed for trends and fluctuations. Statistical tools are used to assess the relationship between profitability ratios and factors such as operational efficiency, asset management, and market conditions.

Findings: The findings indicate significant fluctuations in profitability ratios, reflecting challenges in cost management, asset utilization, and market competition. The study reveals that while some companies successfully managed to improve their profitability, others faced difficulties due to rising operational costs and inefficiencies in asset utilization. The analysis highlights the importance of controlling production costs, optimizing asset management, and adjusting pricing strategies to improve profitability.

Paper type: Research Paper

THE EFFECTIVENESS OF CONSTRUCTION GOODS AND SERVICES PROCUREMENT LAWS ON PRIVATE CONTRACTORS: A LEGAL SYSTEM PERSPECTIVE LAWRENCE M. FRIEDMAN

Augustinus Setijanto — 2026-01-31

Public procurement of construction works constitutes a strategic instrument for national development; however, in practice it continues to face complex legal problems. These problems do not merely arise from procedural violations or corrupt intent, but also from unclear administrative authority, regulatory complexity, and weak legal culture in procurement implementation. Such conditions have contributed to increasing procurement disputes and the risk of policy criminalization, particularly affecting private contractors who perform works based on administrative orders issued by authorized officials. This paper aims to analyze legal problems in construction procurement in Indonesia by applying Lawrence M. Friedman’s legal system theory, which emphasizes three interrelated elements: legal structure, legal substance, and legal culture. The research employs a normative legal method with statutory, conceptual, and case-based approaches, analyzed through qualitative-descriptive techniques based on procurement regulations, legal doctrines, and judicial decisions as well as procurement practices. The analysis demonstrates that the ineffectiveness of construction procurement law stems from an imbalance among the three elements of the legal system. Weak coordination within the enforcement structure leads to the criminalization of administrative errors, complex legal substance creates ambiguity and risky discretion, while a permissive legal culture exacerbates deviations in practice. This paper offers a systemic reform perspective by emphasizing clearer differentiation between administrative and criminal liability, stronger legal protection for good-faith private contractors, and the reinforcement of ethical values and legal culture in procurement governance. Through this approach, construction procurement law is expected to function more effectively in achieving legal certainty, justice, and utility for sustainable national development.

Marketing Management: Present, Past and Future in the Modern Business Scene

Leonard Joshua — 2026-01-31

Marketing management has undergone substantial transformation in response to economic development, technological innovation, globalization, and evolving consumer behavior. Initially rooted in production efficiency and transactional exchanges, marketing management has progressively evolved into a strategic, customer-centric, and value-driven organizational function. In the contemporary business environment, marketing management integrates digital technologies, data analytics, relationship marketing, and sustainability principles to create competitive advantage and long-term value for both firms and stakeholders.

This paper aims to provide a comprehensive and systematic analysis of marketing management from three temporal perspectives: the past, the present, and the future. The historical analysis explores the evolution of marketing orientations, ranging from production and sales orientation to market, societal, and relationship-oriented marketing. The discussion of the present focuses on marketing management practices within modern business environments characterized by digitalization, global competition, empowered consumers, and rapid innovation. Furthermore, this paper examines future trends in marketing management, including artificial intelligence, big data analytics, sustainability-driven marketing, experience-based marketing, and agile marketing practices.

By adopting an integrative literature-based approach, this study contributes to a deeper understanding of how marketing management has transformed into a strategic discipline essential for organizational survival and growth. The findings suggest that organizations capable of aligning historical insights, contemporary practices, and future-oriented strategies will be better positioned to achieve sustainable competitive advantage in an increasingly complex and dynamic marketplace.

Optimizing Employee Performance of the Central Statistics Agency through Transformational Leadership, Training: Job Satisfaction Mediators

Nuning Nurna Dewi — 2026-01-31

Performance is a real behavior displayed by each person as a perception of work by employees according to their role in the company. This study aims to determine the relationship between the influence of transformational leadership, job training, job satisfaction and employee performance of the Central Statistics Agency. This study uses a quantitative descriptive method. The sample and population are 37 employees. The data collection technique uses a Likert Scale. The data analysis method used in this study is Multiple Linear Regression Analysis, hypothesis testing and Path analysis with the help of the SPSS version 25 program. The results of the study show a positive and significant influence on the transformational leadership variable on employee performance of the Central Statistics Agency. There is a positive and significant influence on the job training variable on employee performance of the Central Statistics Agency. Transformational leadership has a positive and significant influence on Job Satisfaction of the Central Statistics Agency. Job training has a positive and significant influence on job satisfaction of the Central Statistics Agency. Job satisfaction has a positive and significant influence on employee performance of the Central Statistics Agency. Job satisfaction is able to mediate transformational leadership on employee performance of the Central Statistics Agency and job satisfaction is able to mediate job training on employee performance of the Central Statistics Agency.