key: cord-0789051-g2hbrw0g authors: Choongo, Progress; Eijdenberg, Emiel L.; Lungu, John; Chabala, Mwansa; Taylor, Thomas K.; Masurel, Enno title: The Influence of Environmental Pollution and Drought on the Satisfaction With Life of Entrepreneurs in Zambia’s Mining Sector date: 2020-10-09 journal: Economic Effects of Natural Disasters DOI: 10.1016/b978-0-12-817465-4.00010-8 sha: c21a1863216f509a2d1bd9d9029d3c9bbda9ec2c doc_id: 789051 cord_uid: g2hbrw0g Following contemporary trends of entrepreneurship research, measures of entrepreneurship, in terms of corporate social responsibility in relation to business performance (as an indicator of welfare, which is monetary well-being), has been investigated abundantly in developing countries. However, the consequences of climate change and natural disasters, such as environmental pollution and drought, have hardly been studied on the satisfaction with life (i.e., well-being) of entrepreneurs in developing countries. Therefore based on questionnaires administered to 132 entrepreneurs in the mining sector of the Copperbelt Province and North-Western Province of Zambia (i.e., the developing country context of this study), this chapter shows that environmental pollution and drought have a negative effect on satisfaction with life. Moreover, environmental pollution and drought have negative effects on both business’ profitability and decision-making. The results involve contributions to the existing literature and practical suggestions for entrepreneurs, policymakers, and educators. most because of their limited economic resilience (Arndt et al., 2019; Fayiga, Ipinmoroti, & Chirenje, 2018; Gannon et al., 2018) . In these regions, resource scarcity from water and land leads to food insecurity and forced migration (Nkomoki, Bavorová, & Banout, 2019) . This suggests that the natural environment is threatened, and human society is at greater risk because its survival is threatened (Bose-O'Reilly et al., 2018; Mihaljevič et al., 2018) . A human being's survival is dependent on the natural environment capacity to sustain well-being, including food, shelter, and clothing (Brundtland, Khalid, Agnelli, & Al-Athel, 1987; Krefis, Augustin, Schlünzen, Oßenbrügge, & Augustin, 2018) . Scholars and international regulatory bodies have called for action to reduce the negative environmental and social impacts (Babiak & Trendafilova, 2011; Libanda, Zheng, & Ngonga, 2019; Mulenga, 2019) . Because, for example, it is known that natural disasters cause a decrease in entrepreneurial activity in the short run, especially in developing countries (Boudreaux, Escaleras, & Skidmore, 2019) . As such, entrepreneurs should take measures of how environmental disasters, such as environmental pollution and drought caused by industry, impact the well-being (i.e., measured in this chapter as satisfaction with life: Diener, Emmons, Larsen, & Griffin, 1985) of entrepreneurs. But before taking measures, first, the impact of natural disasters on entrepreneurs' satisfaction with life has to be determined. Following urgent global trends such as climate change, and consequently natural disasters, the relationship between entrepreneurs, on the one hand, and well-being, on the other hand, is not new. This relationship has been researched from different global perspectives (Lepeley, Kuschel, Beutell, Pouw, & Eijdenberg, 2019) , including Zambia (see Eijdenberg & Ehmann, 2019) , showcasing that entrepreneurship is a defining factor for societal well-being. From the entrepreneurs' perspective, taking care of the environment is one way of taking care of one's own and others' well-being. Giving back to the community, engaging underprivileged people in the business, recycling products, offering sustainable solutions to customers, and using resources efficiently are examples of corporate social responsibility of entrepreneurs in Zambia (Choongo, Paas, Masurel, van Burg, & Lungu, 2018; Choongo, van Burg, Masurel, Paas, & Lungu, 2017; Choongo, van Burg, Paas, & Masurel, 2016) . More often than not, these studies showed how corporate social responsibility determined business performance, and, hence, the well-being (i.e., welfare, expressed in monetary terms) of entrepreneurs. However, how environmental disasters, such as environmental pollution and drought caused by industry, affect the well-being of entrepreneurs has hardly been researched. Although the number of studies on the economic effects of natural disasters has increased in recent years (Ishizawa & Miranda, 2019; Karbownik & Wray, 2019; Mohan, Ouattara, & Strobl, 2018; Oliva & Lazzeretti, 2018) , most often these studies are conducted in (1) developed countries and (2) often by using large quantitative, macro-level surveys. However, a showcase of environmental disasters in an economically important sector of a developing country-the mining sector in Zambia-has been missing hitherto. Especially the one propelling economic and societal development, the entrepreneurs, have largely been overlooked, including their satisfaction with life. The satisfaction with life of these acting individuals is important because, eventually, it contributes to the well-being of individuals, in particular, and society in general. Hence, the research question (RQ) of this study is "What is the influence of environmental pollution and drought on the satisfaction with life of entrepreneurs in Zambia's mining sector?" Based on primary data, the influence of environmental disasters (i.e., environmental pollution and drought) on the satisfaction with life of entrepreneurs in Zambia's major mining cities Chambeshi, Chingola, Kitwe, Luanshya, Mufulira, Ndola, and Solwezi, is examined. A sample of 132 entrepreneurs is surveyed. Besides descriptive statistics and correlations, regression analyses (Hair, Black, Babin, Anderson, & Tatham, 2006) are conducted on the entrepreneur's satisfaction with life, and their perception of how this has been affected by environmental pollution and drought in Zambia. The Republic of Zambia (or short Zambia) is the context of this study. Zambia is a country in the southern regions of SSA with Lusaka as its capital city. Zambia has an estimated population of 17 million. It is typically a "developing country" with increasing gross domestic product (GDP) growth rates per annum and an average GDP per capita of USD 4000, while high inflation rates on consumer prices were recorded in 2017, at around 6.6% (17.9% in 2016). More than half of Zambia's population live below the poverty line and is younger than 17 years old. Urbanization is high: approximately 43.5% of the population live in the larger urban areas, a comparable percentage with other SSA countries (Central Intelligence Agency, 2020; Choongo, Eijdenberg, Chabala, Lungu, & Taylor, 2020) . Like other SSA countries, Zambia is still in premature stages of economic development. Countries such as Zambia depend on natural resources to achieve development. They, for instance, introduce extractive industries such as mining to generate resources to fulfill their basic needs, improve the standard of living, and reduce poverty. In the case of Zambia, minerals extracted such as copper and cobalt are melted in furnaces in the smelter to transform concentrates in copper cathodes ready for sale. In the past century, Zambia's mining industry has been the economy's main driver, and it has considerably contributed to economic and societal development (Choongo et al., 2020) . As a heavy industry, mining is among the most polluting (e.g., air, water, and soil) (Mulenga, 2019) . The mining activities are mainly in the country's northern regions: the Copperbelt Province and the North-Western Province. Often related sectors to mining, such as construction, oil processing, and manufacturing, are also great contributors to the country's economy. Among the other heavy polluting industrial activities, the melting of copper leads to the emission of large amounts of carbon dioxide into the atmosphere causing air and water pollution. When sulfur dioxide combines with rainwater, it forms acidic rain that corrodes metal roofs, destroys plantation, and affects rivers. Furthermore, air pollution contributes to global warming and climate change that consequently results in natural disasters such as floods, droughts, and cyclones. Flood also results in crop failure. Thus, the changes induced to the natural environment make people living in those communities prone to natural disasters. Therefore this study is significant because the findings will inform scholars and practitioners on the importance of taking measures to reduce negative environmental effects, thereby improving society's satisfaction with life and the natural environment. Following the RQ, we collected data on the influence of environmental pollution and drought on the satisfaction with life of entrepreneurs within Zambia's mining sector. All items in the questionnaire were in English. After the process of items' development, the questionnaire was pilot tested on a group of 10 entrepreneurs to check on comprehensibility, consistency and validity, and English language. The final version of the questionnaire was administered on a sample of n 5 132 entrepreneurs in the cities and outskirts of Chambeshi, Chingola, Kitwe, Luanshya, Mufulira and Ndola; in the Copperbelt Province; and Solwezi in the North-Western Province. As mentioned earlier, mining is the dominant industry in this region, and many entrepreneurs are active either within the mining industry or in related areas such as distributors, suppliers, or service providers. Table 10 .1 presents the items of the final questionnaire. The procedures for generating suitable items for the questionnaire evolved as follows: 1. Sociodemographic items were selected to control for pertinent information of the respondents (cf. Choongo, 2017; Eijdenberg et al., 2015; Eijdenberg, 2016) ; 2. Diener et al. (1985) 's scale 1 was adopted to measure satisfaction with life, the proxy of wellbeing. Principal Components Factor analysis (PCA) was used to check the suitability of the scales in the Zambian context. All the items from the original scale loaded on a single-item Eigenvalue greater than one, explaining the variance of 57.2%. The factor loadings were above 0.6, and the scale showed reliability with a Cronbach's alpha value of 0.81. 3. The items measuring environmental pollution and drought were developed on the basis of, first, a literature review of these two topics and, second, an iterative process of the Zambian authors of this chapter to shape the items in such a way that they would capture the intended meaning and be applicable to the Zambian context. From the PCA results the KaiserÀMeyerÀOlkin score, a measure of sampling adequacy, for environmental pollution was 0.795 and for drought was 0.728. The Bartlett's Test of Sphericity values were significant at P , .001 for both variables. All commonalities for the variables were above the critical value of 0.3 (Hair et al., 2006) . The items on the scale loaded as expected, explaining a total variance of 69.4% for environmental pollution and 79.4% for drought. Both variables showed reliability with the Cronbach's alpha of environmental pollution (α 5 0.849) and drought (α 5 0.864) and were above the recommended threshold of 0.7 (Hair et al., 2006) . We calculated the composite scores for the constructs of environmental pollution and drought, respectively, by calculating the average score on all scale items. The sample consisted of entrepreneurs who were managing and owning SMEs, strongly related to the mining industry. These types of businesses are manufacturers of finished and semifinished products but especially contractors and suppliers. From the sample, 34% of the businesses were female-owned, while 66% were owned by men. The majority of the respondents were below the age of 40 years (i.e., 77%), while all respondents had completed secondary school education and 74% had some form of tertiary education (i.e., educational qualifications higher than secondary school). 1 To illustrate its impact, according to Scholar Google the paper that contains this scale has been cited 27,544 times on September 7, 2020. In Zambia's mining region, I observe much environmental pollution such as air pollution 1 5 strongly disagree, 2 5 disagree, 3 5 slightly disagree, 4 5 neither agree nor disagree, 5 5 slightly agree, 6 5 agree, 7 5 strongly agree 11 In Zambia's mining region, I observe much environmental pollution such as noise pollution 12 In Zambia's mining region, I observe much environmental pollution such as water pollution 13 In Zambia's mining region, I observe much environmental pollution such as garbage In Zambia's mining region, I observe that environment suffers from drought 1 5 strongly disagree, 2 5 disagree, 3 5 slightly disagree, 4 5 neither agree nor disagree, 5 5 slightly agree, 6 5 agree, 7 5 strongly agree 15 In Zambia's mining region, I observe that temperature is rising 16 In Zambia's mining region, I observe that water levels in rivers are dropping To what extent has environmental pollution in Zambia's mining region, such as air pollution, affected the profitability of your business? 1 5 very negative, 2 5 negative, 3 5 somewhat negative, 4 5 neither negative nor positive, 5 5 somewhat positive, 6 5 positive, 7 5 very positive 18 To what extent has environmental pollution in Zambia's mining region, such as noise pollution, affected the profitability of your business? (Continued) To what extent has environmental pollution in Zambia's mining region, such as water pollution, affected the profitability of your business? 20 To what extent has environmental pollution in Zambia's mining region, such as garbage, affected the profitability of your business? To what extent has drought in Zambia's mining region had a profound effect on the profitability of your business? 1 5 very negative, 2 5 negative, 3 5 somewhat negative, 4 5 neither negative nor positive, 5 5 somewhat positive, 6 5 positive, 7 5 very positive 22 To what extent has rising temperatures in Zambia's mining region had a profound effect on the profitability of your business? 23 To what extent has dropping water levels in rivers in Zambia's mining region had a profound effect on the profitability of your business? To what extent has environmental pollution in Zambia's mining region, such as air pollution, influenced the decision-making practices of your business? 1 5 very negative, 2 5 negative, 3 5 somewhat negative, 4 5 neither negative nor positive, 5 5 somewhat positive, 6 5 positive, 7 5 very positive 25 To what extent has environmental pollution in Zambia's mining region, such as noise pollution, influenced the decision-making practices of your business? 26 To what extent has environmental pollution in Zambia's mining region, such as water pollution, influenced the decision-making practices of your business? 27 To what extent has environmental pollution in Zambia's mining region, such as garbage, influenced the decision-making practices of your business? To what extent has drought in Zambia's mining region influenced the decision-making practices of your business? 1 5 very negative, 2 5 negative, 3 5 somewhat negative, 4 5 neither negative nor positive, 5 5 somewhat positive, 6 5 positive, 7 5 very positive 29 To what extent has rising temperatures in Zambia's mining region influenced the decisionmaking practices of your business? (Continued) To answer the RQ, the collected data were analyzed following the conventional steps of quantitative methodologies (Hair et al., 2006) as previously applied in other SSA countries (cf. Eijdenberg & van Montfort, 2017; Eijdenberg et al., 2015) and in Zambia (cf. Choongo et al., 2016 Choongo et al., , 2020 . After the data collection, descriptive statistics and correlation analyses were conducted. To test the effects of environmental pollution and drought on the satisfaction with life of entrepreneurs, regression analyses were performed. The next section presents the results. We computed the Means and Standard Deviations of the items numbered 17À23 and 24À30-as per Table 10 .1. These items reflect the effects of environmental pollution and drought on profitability and the effects of environmental pollution and drought on decision-making, respectively. The results are presented in Table 10 .2. From Table 10 .2 can be drawn that the effects of environmental pollution and drought on both business' profitability and decision-making are negative: all means are far below the midpoint of 4.0. A partial correlation was conducted to establish the relationship between satisfaction with life and environmental pollution and drought while controlling for gender, age, education, and business size (i.e., measured by "number of current employees, including yourself"). There was a high, negative partial correlation between satisfaction with life and environmental pollution (t 5 2 0.79, P , .001) To what extent has dropping water levels in rivers in Zambia's mining region influenced the decision-making practices of your business? and drought (t 5 2 .66, P , .001). Zero-order correlations also showed that there was a statistically significant, negative correlation between satisfaction with life and environmental pollution (t 5 2 .73, P , .001) and drought (t 5 2 0.66, P , .001), indicating that the control variables did not have much influence in controlling for the relationship satisfaction with life and environmental pollution and drought. Multiple linear regression analyses were used to establish the effects of environmental pollution and drought on satisfaction with life of entrepreneurs in Zambia's mining sector. Hence, in addition to the sociodemographics (i.e., items numbered 1À4) (i.e., "controls"), the composite constructs of environmental pollution (i.e., items numbered 10À13) and drought (i.e., items numbered 14À16) are defined as the independent variables (i.e., "main effects"), and the composite construct of satisfaction with life (i.e., items numbered 4À9) is the dependent variable. The results are shown in Table 10 .3. In "Model 1," only the controls were considered, while "Model 2" included all independent variables. To ensure that multicollinearity was not a problem, we tested for possible collinearity among all variables by using the variance inflation factors (VIF). All VIF values were below the critical value of 10, indicating that multicollinearity was excluded (Hair et al., 2006) . The results show that the "Model 2" that included both the controls and the main effects was statistically significant with an adjusted R 2 value of .64 (F 5 39.90; P , .001). Both environmental Effect is significant at the 0.05 level (two-tailed). pollution (β 5 20.49; P , .001) and drought (β 5 20.14; P , .05) had a statistically significant negative effect on the entrepreneurs' satisfaction with life. The aim of this chapter was to answer the RQ, therefore, examining the effects of environmental pollution and drought on satisfaction with life (as a proxy of well-being) of entrepreneurs in Zambia's mining sector. The analyses of the primary data of 132 respondents showed that environmental pollution and drought have a negative effect on satisfaction with life. Additional analyses show that the effects of environmental pollution and drought on both business' profitability and decision-making are negative as well. The results involve contributions to the existing literature. On a general level, this chapter may serve among the first to overcome a scholarly disconnection between research fields, which is entrepreneurship (i.e., a social science) and natural sciences. Although in the past, knowledge spillovers within grand science streams such as social sciences (including entrepreneurship and development economics) have little but increasingly occurred (Naudé, 2010) (especially journals, among others, Small Business Economics and Journal of African Economies have met this trend); however, entrepreneurship-as part of social sciences-meeting disaster science-as part of natural sciences-is rather new. Furthermore, on a granular level, more often than not, entrepreneurs' measures to the environment are studied (Choongo et al., 2016 Choongo, 2017) . In addition, creative responses to natural disasters, often showing that entrepreneurs are willing, able, and capable of starting up and running (new) businesses, are abundantly researched as well (Dutta, 2017; Linnenluecke & McKnight, 2017; Monllor & Murphy, 2017) . However, the effects of a changing natural environment, viz., effects from climate change such as natural disasters to the entrepreneur-as a person-are largely overlooked. The focus on satisfaction with life is important because it defines well-being, and, hence, the performance of the entrepreneurs' businesses Lepeley et al., 2019) that, consequently, contributes to overall regional social and economic development (Gries & Naudé, 2010 Naudé, 2010; Wennekers et al., 2005) . The results of this study provide the detailed insights of what types of environmental pollution (e.g., water pollution, garbage) and drought (e.g., rising temperatures, dropping water levels of rivers) affect the entrepreneurs, in terms of their satisfaction with life and, additionally, their businesses' profitability and decision-making. What do the results imply for practitioners? Based on the results of environmental pollution and drought, entrepreneurs should know which factors (and to what extent) affect their satisfaction with life, business' profitability, and decision-making. Entrepreneurs could take measures to combat these specific factors of environmental pollution and drought, for example, by not polluting water and arranging garbage collection. At the same time, other practitioners, such as policymakers and educators, should focus on those determining factors of satisfaction with life, business' profitability, and decision-making, as well. By creating policies and education/training programs that mitigate the environmental pollution and drought (e.g., reducing emissions, recycling, and considerate waste disposal), entrepreneurs' satisfaction with life will be improved-which leads as a positive spiral to social and economic development. This study is constrained by its limitations such as sample selection, size, and location, and the time of the data collection. Without a doubt, different results are found when these constraints are overcome. Therefore, we encourage researchers to defeat these limitations by studying a similar topic with different entrepreneurs, a larger sample and on different locations. Naturally, longitudinal data collections bear different results, allowing observing the effects over time. This would especially be interesting in a scenario of a (sudden) significant change of environmental pollution and drought (e.g., in the midst of and shortly after the peak of the global COVID-19 crisis in 2020), for example, in the case of zero emissions, no water pollution, and no waste disposal. Assessing the scores between entrepreneurs' satisfaction with life of preenvironmental pollution and drought with postenvironmental pollution and drought would allow for making invaluable comparisons. Moreover, future researchers are encouraged to study the topic of this chapter in different methodological fashions, for example, qualitatively. Focus groups, interviews, and observations would bear deeper and more personal insights into the effects of environmental pollution and drought on satisfaction with life. Ideally, these qualitative insights would provide more contextual information about the topic under study (Saunders, Lewis, & Thornhill, 2009 ). 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