A Descriptive Study of the Growth Strategies Adopted by Small to Medium Enterprises (SMEs) in Harare, Zimbabwe (2009 – 2021).
- June 17, 2022
- Posted by: rsispostadmin
- Categories: IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue V, May 2022 | ISSN 2454–6186
Nothando Tshuma, Simbarashe Gwata, Smarntha Shonhiwa, Amos Mpofu
National University of Science and Technology, Bulawayo Zimbabwe.
Abstract: The role played by Small and Medium Enterprises (SMEs) in economic development is substantial, hence their progression and viability is of major concern. This study aimed to describe the growth strategies adopted by SMEs in Harare. A descriptive survey research design was used. In the first strand quantitative data was collected through questionnaires from sixty-one SMEs. In the second strand qualitative data was collected through interviews with thirty selected participants from the first strand. Research findings show that the key strategy used by SMEs is networking market penetration, market development, human resource strategy, diversification strategy and product development strategy. Education was the most prominent factor affecting the choice of strategy. The study recommends SMEs to make use of growth strategies that are in line with their vision and mission. A thorough analysis of the environment wherein they operate should be done before they use a particular growth strategy.
Keywords: Growth strategies, Small to Medium Enterprises.
I.INTRODUCTION
The incessant failure and stagnancy of SMEs in Harare, Zimbabwe has become a major concern to the government. SMEs either struggle to make it to the fifth year or they experience marginal growth then stagnate (SMEAZ report (2016), Maseko, Manyani et al, 2012). Despite efforts by institutions such as SMEAZ to support the SMEs, failure and stagnancy rates are still rising with most SMEs failing to service or pay back their loans. . According to Auditor General’s report , the Small and Medium Enterprises Develoment Cooperative (SMEDCO) had not recovered 67% of loans issued to SMEs . This problem has negatively affected employment levels as most people end up being laid off. A possible cause of this problem could be the growth strategies being adopted by SMEs. Previous researches in Zimbabwe have focused on strategy formulation and implementation by SMEs (Nyamwanza, 2013;), challenges faced by SMEs (Tinarwo, 2016; Karedza et al., 2014; Chimucheka, 2012; Majoni et al., 2016) and causes of failure of SMEs (Chiwara 2015); Mudavanhu et al., 2011) but there is a gap in as far as growth strategies used by SMEs are concerned. This is like an anchor indicating the need for this research. Hence a descriptive study of the growth strategies adopted by SMEs in Zimbabwe is of essence since SMEs are now the drivers of economic growth and development.
