Obtaining independence, many postcolonial states received an opportunity to transform their political and economic systems and improve the structure of the government and social life. Two processes have changed the political and economic map of the world and created new challenges and opportunities for enterprises in the periphery of the global economy. Legitimatization has mainly drawn on the prescriptions of neo-classical economics. Deregulation of domestic economic life, less state intervention in economic activities, and fewerobstacles to international trade: these are the main tenets of neo-liberal policy. Earlier experiments in free market economics have usually led to the revival of regulatory efforts in order to secure social and political stability and the continued legitimacy of the state. Failing this they have generated social revolutions or else 'free' markets have been maintained under the cover of armed dictatorship.The main agents responsible to the political and economic stagnation in postcolonial states are local political figures and state leaders concentrated on productivity issues and creation of wealth at the expense of local populations and exploitation of natural resources. Sandbrook & Barker (1995) and Tordoff (2002) state that African countries suffer from so called ‘neopatrimonialism’ or personal rule, promoted and introduced economic and political irrationalities in these postcolonial states. ...
he prevalence of household production decreases, opportunities are created for small enterprises, either in rural areas, which leads to an increase in non-agricultural activities, or in urban areas, due to the migration fuelled by increased efficiency of agriculture, land shortage, etc. (Hoogvelt 2001). The increase in informal enterprise is a part of an industrialization process which both creates openings for manufacturing enterprises but also increases the opportunities for trade in their products. Tordoff (2002) suggests that a large part of the problem is to be found in the business environment created before independence. Following Sandbrook & Barker (1995) a transition in Zimbabwe calls for the establishment of a neutral framework for different kinds of enterprises, what has been called 'good governance,' rather than sector specific efforts. Sandbrook & Barker analyze what this would imply for Zimbabwe, focusing on a number of regulations still in force which directly work against the interests of entrepreneurs. However, the structural disadvantages of small enterprises are such that continued efforts to ameliorate the by now well-known problems of small entrepreneurs are needed. However, these tasks do not need to be carried out by central government agencies, and should be entrusted to local governments and non-governmental organizations (NGOs) both of which can more easily tailor support measures to the manifest needs of their clients. "African states are not, in any real sense, capitalist states. Productive economic activities are impeded by the political instability, systemic corruption and maladministration associated with personal rule" (Sandbrook & Barker 1995, p. 1).
The development of enterprises has been discouraged by policies which favoured the