An evaluation of the impact of lack of extension services on automobile SMEs growth in Zimbabwe: The case of automobile repairers at Gazaland Industrial Park (2009 - 2011)

Abstract

This research was conducted to evaluate the impact of lack of extension services on SMEs growth focusing on automobile SMEs at Gazaland. The global convergence of minds regarding the importance of SMEs sector to the national economic matrices of both developing and developed countries is testament to its contribution to employment creation and output. Literature reviewed, by and large, pointed out that dearth of entrepreneurial dexterity on part of owner/managers of SMEs is responsible for absence of optimal growth of the sector, stagnation and high failure rate. The inescapable conclusion of literature is that inculcation of business management skills is a prerequisite for optimization of SMEs sector growth. In this study, the quantitative approach which adopted the case study and questionnaire was used. The researcher administered questionnaire to 121 respondents. A response rate of 76% was obtained and the data was analyzed using SPSS and Microsoft Excel to produce histograms, pie charts and cross tabulations.

The results show that automobile SMEs at Gazaland are faced by a number of challenges constraining their growth. Of the automobile SMEs that received financial assistance, only 8% registered growth indicated mainly by annual turnover. Since 2009, about 99% of surveyed respondents have not received extension services and about 97% wish to receive training. Government support services are not available 95% of the times. Impartment of business skills is key to growth optimization of SMEs. Availing financial assistance alone is not the solution to all the problems affecting SMEs. Provision of extension services aimed at bridging business skills gap enhances creditworthiness and business management capabilities, thereby catalyzing growth.