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Challenges Faced by Small to Medium Scale Enterprises: A Case Study of Chitungwiza, Zimbabwe

2014; Volume: 4; Issue: 4 Linguagem: Inglês

10.15580/gjbms.2014.4.102113910

2276-7827

Fungai B Gombarume, Shingirayi Mavhundutse,

Private Equity and Venture Capital

The study sought to assess the challenges faced by Small to Medium scale Enterprises (SMEs) in Chitungwiza, Zimbabwe using data from 2010-2012.The other objectives were to discover whether SMEs were getting loans from financial institutions, to examine the impact of government policies on SMEs and to come up with strategies that lead to a vibrant SMEs sector. The descriptive survey method was used to elicit information from the respondents and a case study approach was used. The study was confined to Chitungwiza area where a sample of 100 SMEs was adopted. Data was obtained through interviews and distribution of questionnaires. From the research findings, it emerged that SMEs are not getting enough financial support from financial institutions. The study also revealed that an unstable macroeconomic environment was hindering SMEs sector growth. The study recommended that the government should set up a loan guarantee scheme and SMEs should formalize their activities to get financial support from the financial institutions.