In sum, entrepreneurship and managing organizations are closely intertwined. One of the challenges going forward is competing in the global arena where products and services are brought together from several countries or regions. This requires focusing on team dynamics, cross-cultural issues and political/legal requirements. The opportunities are boundless yet it needs an individual who is comfortable working in a messy environment (Innovation, Creativity, and Entrepreneurship - Robert McGowan)
Generally, countries nationalize companies or industries in order to gain national control of strategic resources in the economy, and to achieve social and political objectives, that is, for ideological reasons. Furthermore, economies of large scale may be achieved if one large company takes over the industry. It may be socially desirable to protect jobs through nationalization. This is true for the South African government which is in developmental state which seeks to create jobs, improve the welfare of the people and move towards equitable distribution of wealth by correcting apartheid injustices. In addition to these reasons Todaro and Smith stated that SOEs may be created when there is bankruptcy by the private industry and during the early stages of development when savings are still low.
Nationalization is usually followed by privatization and renationalization and subsequent privatization. Zambia is no exception to this cycle. Privatization is the transfer of Ownership from the public to the private sector. The disposal of shares has not been transparent and it involved corruption. In some cases investors lacked the capacity to take over the companies but they got away with murder. Usually there is underpricing on disposal. This resulted in immediate failure and renationalization. A good example is the Luanshya mine case which was sold to a company without previous mining experience and was undercapitalized. The company was repossessed and sold to another company.
Last date updated on July, 2014