Restraint of trade compliance and its effect on business model creation in the Covid 19 Era in Harare

Abstract

This study seeks to ascertain the level of compliance with the covenant in restraint of trade during the Covid-19 era in Harare between March 2020 and January 2022 and its impact on the creation of new business models. The research was largely qualitative with also features of quantitative approach to ensure that the level of compliance was ascertained first and then the assessment of how that level of compliance affected creation of business models during the Covid-19 period in Harare. The study focused on former employees who had been laid off during the period stretching from March 2020 to January 2022 in the central business district in Harare and had signed contracts with covenant in restraint of trade clauses.The sampling method that was used is snowball sampling. The population of interest was hard to access therefore 10 people within the writer’s circle were chosen and these assisted in identifying other potential subjects and this led to the desired number of the sample size which was 50. The results showed that the number of people who complied with the restraint of trade during the period under review were more than those who did not comply and this affected creation of business models. It is therefore recommended that restraint of trade clauses should be limited to apply to the situations that are economically stable to ensure continuity and innovation in the business environment.