The Effects of Infrastructure on Development of Small to Medium Enterprises (SMEs): (A Case of Small to Medium Enterprises in Mutoko Service Center.)
- November 25, 2021
- Posted by: rsispostadmin
- Categories: IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue XI, November 2021 | ISSN 2454–6186
William Mbewe1, Charles Mavhunga2
Faculty of Commerce and Law. Zimbabwe Open University (ZOU) Harare Region, Zimbabwe
Abstract: The objective of this research was to present an analysis of the effect of infrastructure on development of Small to Medium Enterprises (SMEs) at Mutoko. In pursuit of this broad aim, the study used SMEs, Residents of ward 20, District Development Officers, Council Chairperson and council staff in Mutoko Service Center, Mashonaland East, Zimbabwe as the key research informants. The work of authoritative writers anchored the study. The study methodology was mainly descriptive and a comprehensive data collection was done using questionnaires to assess the views of the respondents. Interviews were also used to compliment on the shortcomings of questionnaires to ensure that adequate data was collected. The infrastructure components was broken down into four elements; roads infrastructure; water, sanitation and hygiene (WASH) infrastructure; electricity infrastructure and serviced stands. The main study findings were that the availability of infrastructure was an effective way to foster world class growth and development for SMEs at Mutoko. SMEs in Mutoko have great growth potential in the granite industry and agriculture but infrastructure development was blocking the full growth of industries. There was very little adherence to town planning policies as enshrined in the RDC Act Chapter 29:13 resulting in a haphazard arrangement of workspaces for SMEs. This setup was notably an impediment to SMEs development since this directly affected SMEs access to roads, electricity and WASH infrastructure. The main study conclusion was that roads and parking infrastructure critically contributes towards the SMESs development in Mutoko growth point. Formalized work-spaces through serviced stands and developed structures form the pillars of SMEs development. Electricity and other sources of energy promotes mechanization and adoption of modern technology by SMEs, a move that promotes quality and quantity production. WASH infrastructure correlates with formal work spaces for SMEs and instrumental in the viability of day to day business operations for SMEs in Mutoko. The main study recommendations were that: Mutoko Rural District Council (MRDC) may need to construct shelter for leasing by SMEs to motivate growth and development of SMEs and to eliminate floating locations by those operating on non-formalized work-spaces. Schemes such as rent–to-buy may need to be encouraged to bring a lasting solution on issues to do with WASH, electricity and road infrastructure. The study also recommends that there should be full capacitation of local authorities and Parastatals by the central government as a means to steer up SMEs development.
I. INTRODUCTION
At global level, Small to Medium Enterprises (SMEs) has taken a center stage in the social and economic development of many nations (UNDP, 2018). China is considered the world’s fastest growing economy. Its SMEs are housed in story buildings and issues to do with road and parking infrastructure, electricity and communication, water, sanitation and hygiene (WASH) infrastructure are well addressed. Dubai SMEs operation were formalized and issues to do with infrastructure were effectively handled by the government, SMEs now count for 95% of the total enterprise population, employ around 42% of Dubai’s workforce and contributes 40% of Dubai’s value add (Mohammed Bin Rashid 2011). Small and Medium Enterprises (SMEs) occupy a place of pride in virtually every country or state.
