An Analysis of The Factors That Affect Adoption of Growth Strategies by Smes
- June 17, 2022
- Posted by: rsispostadmin
- Categories: Business Administration, IJRISS, Management, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue V, May 2022 | ISSN 2454–6186
An Analysis of The Factors That Affect Adoption of Growth Strategies by Smes
Tshuma Nothando, Simbarashe Gwata, Smarntha Shonhiwa, Amos Mpofu
National University of Science and Technology, Zimbabwe
Abstract: The nature and scope of Zimbabwean enterprises has significantly changed in the last two decades. Small and Medium Enterprises now drive the economy hence the widespread interventions and emphasis on them by government and other stakeholders. However, these SMEs still struggle to grow. A major cause could lie in the growth strategies that they employ. This study sought to analyse the factors that affect adoption of growth strategies by SMES.A descriptive survey was used. The study divulges that owners or managers who have attained tertiary education are more likely to adopt market penetration strategy, product development and human resource strategy rather than marketing strategy. Research results also showed that technology significantly influences their adoption of growth strategies. Those SMES with formal organisational structure are likely to adopt marketing strategy. The SMEs are recommended to be proactive when choosing growth strategies. Environmental scanning is essential before they embark on a particular growth strategy in order to be informed of the circumstances that may hinder the successful implementation of the growth strategies.
I.INTRODUCTION
The growth of SMEs is becoming a crucial component of the economy of Zimbabwe because of its contribution to creation of employment, lessening poverty and viable development (Majoni et al, 2016; Memba et al, 2012; Mangudya, 2017, Beynon 2020). Despite concerted efforts by the Reserve Bank of Zimbabwe, Zimbabwe National Chamber of Commerce, Small to Medium Enterprise Development Cooperative, Small to Medium Enterprise association of Zimbabwe, Ministry of SMEs and other organisations SMEs still struggle with growing (Munjeyi ,2017);Tinarwo, 2016; Karedza, 2014;). Policy intervention single-handedly will not meaningfully influence economic activities in Zimbabwe. A deeper look at the SMEs themselves is essential. There is a gap in as far as factors affecting adoption of growth strategies by SMEs is concerned.Perhaps an understanding of what drives their growth strategy could help understand why they keep struggling with the aim of finding durable solutions to this problem.
