Kleinhandel unter schwierigen institutionellen Voraussetzungen – Reaktionen, Strategien und Lösungen der Händler auf dem Chisokone-Markt in Kitwe/Sambia
Small-scale trade in Africa and the associated aspects are a much debated topic for many years. The central challenges are for the most part described on the basis of a shortage of capital, network analyses, crisis management strategies, adverse framework conditions and the characteristics of informal trade. Most recent research approaches give priority to the aspect of microcredits which allow small traders a better liquidity and are thus supposed to be a way out of poverty. The debate about small traders in the sub-Saharan context, however, has a relatively sparse focus on the response mechanisms of small traders to trading venues which are subject to constant change. The frequently occurring assumption that informal trade predominantly takes place without any institutional frame, quasi in a free space without regulation by an institution, is only partly applicable. How precise such framework conditions are designed and which influence they have on the small traders’ ability to act is often left out – particularly since institutions which are supposed to manage the economic framework of the small traders, partly also in the informal sector and in the case of the present research on Chisokone market, are not at all able to cope with these administrative challenges. Regarding the preliminary considerations the present research wants to resolve the question which action strategies of small traders in both a fragile and unsecure but for many sub-Saharan countries typical institutional trading framework are promising, and which personnel and economic requirements have to be in place. The reaction to an institutional structure from the small traders’ perspective will be described to answer the research question. Weak institutions are often not the only problem in the sub-Saharan context. The market players have to develop approaches adapted to the economic context which involve both classical business strategies and in addition action strategies which are rather unusual at a first glance. Chisokone market had been chosen as field of research because it is located in the centre of the copper belt and depicts the typical characteristics and challenges of small-scale trade in Zambia. This applies particularly for the informal but also increasingly for the formal sector. The field of research shows furthermore the prevailing difficulty in Zambia of local state and semi-state institutions to provide a functioning administration in this context. Another aspect here is that Chisokone market, although a central economic hub in the copper belt, lingers in a legal grey area. Theoretical concepts are suitable for analysing the field of research which take into account the relationship between individuals and institutions. Thus, the research initially deals with the new institutional economics where rationality assumptions and transaction cost models are predominant. In simple terms, the new institutional economics assumes that utility-maximizing individuals cooperate productively with each other in an incentive and punitive system. Such coherences, however, can only explain a part of the relationships between the traders and appearing institutions. The concept of neo-institutionalism takes into account by means of the decoupling theory that institutions may vary significantly in their actual procedures from their principal formal structure. This subsequently presented concept comes closer to the actual situation in Kitwe but is supplemented by the stakeholder-centred institutionalism. It takes questions regarding the interaction of stakeholders and institutions to the centre which contribute to the understanding of the establishment and transformation of institutions as they occur on Chisokone market. The increasingly closer Sino-African relations and the associated impacts on lower economic structures are also part of the subject matter of research. Local Chinese traders may not be an entirely new phenomenon but the increased competitive situation on the micro level is. This development affects even small traders in Africa over the past few years and they have to deal with this new group of traders. The central question against the background of the debate about institutional influence on small traders is examined by means of qualitative methods in part 3. Small traders, officials and experts in connection with Chisokone market were questioned with the assistance of semi-structured guideline interviews. Part 3 also describes the access to the field and the selection procedure. In addition, the method of observation was used which ensured a more holistic view to the field of research. The subsequent part 4 shows in detail the Chisokone market and its history, the most important characteristics and clarifies to what extent informal or formal economic activities are an issue. Part 5 deals with the institutions of Chisokone market and shows their roles. The following part addresses the impacts of the institutional insecurity on the subject matter of research. On the basis of empirical findings, part 7 shows in detail which strategies the small traders use. Following this, the typing commonly used in social sciences and already briefly mentioned in the section on methods is applied to answer the question of the personnel and economic requirements for successful trading. The section on results discusses possibilities and ways which measures in improving the economic surrounding for small traders seem really to make sense without entering into a debate in terms of development policy. Adequate action strategies and solution mechanism of small traders on Chisokone market can only be considered against the background of numerous personnel, institutional and political factors. On the basis of the present research it turned out that successful acting in the small-scale trade sector in Kitwe, but also throughout Zambia and possibly in similar structures in further countries of sub-Saharan Africa, does not only depend on operational aspects. Appropriate operational action strategies are the basic element for a successful business. If the small traders comply with them, the prospect to survive in the market is high. Nevertheless, skilful trading is often not enough because the local economic framework conditions are extremely unsecure and unpredictable. To face these challenges, the question was raised at the beginning which strategies could be promising in this regard. It is hardly surprising to see that classical business calculations such as an appropriate selection of the product range, a proper procurement policy and network strategies are favourable conditions for a positive business development in an admittedly rather unusual environment. The institutions which are supposed to do lobby work, want to impart entrepreneurial skills and represent the small traders’ rights on their behalf are, at least in Kitwe, unsuitable due to their ineffectiveness. This creates conditions which provide economic development opportunities only to those who have an exceptional talent, affinity to create networks and a high willingness to take risks. In this context typing can show that only a small part of the small traders has all the skills to develop strategies which live up to the environment of Chisokone market. Their formula for success includes the following elements: • Assortment avoiding mass products with an excessive range of goods • Procurement of goods abroad allowing high profit margins; decoupling from local intermediaries • Hybrid business form also covering the supply of good for other small traders • Personal and local dissociation from institutional stakeholders involved in power struggles • Transfer to the formal sector • Separation of private and business funds • Dosed recruitment from family members The correct way to deal with local institutions can only be one part of the overall package of an enterprise. Nevertheless, it turned out that a large part of the traders, also due to their low economic affinity, uses another emphasis and invests a lot of time and resources in the interaction with such stakeholders. The rationality myths mentioned in the theoretical part play a major role in this context. Small traders, who lack entrepreneurial experience, often give credit to the announcements of the traders’ organizations. In doing so, they lose sight of the fact that it is mostly more reasonable to decouple the course of business as far as possible from the activities of the institutional stakeholders. Moreover, it could be demonstrated that the mentioned environment even had been created by the traders themselves. The theoretical concept starting with institutional economics through to stakeholder-centred institutionalism constitutes a superstructure which nonetheless only explains by bits to what extent a trading environment undergoes changes. If the state has not created profound administrative structures, alternative structures occur. As Chisokone market shows, they cannot serve as a substitute for a functioning market management. This aspect applies in particular to a limitation of the number of traders which gives rise to a far too big supply.
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