Creating an Environment to Enhance Business Development: The Case of a Developing Country, Lesotho

Abstract

One of the functions of government is to create an environment conducive for business development, which would eventually impact economic develop-ment. This paper explores the perceptions of business owners and managers in Lesotho on the functional interventions by government on infrastructural development, and also identifies shortcomings in the current strategy. It became evident from a survey of 219 business owners and managers, that the infrastructure in Lesotho does not fully support business development, therefore, there is limited economic growth and development. However, the Lesotho government has recognised the need to improve both the quality and delivery of infrastructure services and has embarked on a series of reforms in inter-alia, the telecommunication, transportation, education and health sectors.