An investigation into sustainable growth strategies for adoption by Small to Medium Enterprises (SMEs) in the Edible Oils Industry in Zimbabwe

Abstract

The study presented in this paper analyses the sustainable growth strategies that can be taken advantage off by SMEs in the edible oils industry in Zimbabwe and explores macro environmental factors and a firm‟s competitive advantages that can be taken advantage of to attain growth. SMEs in the edible oils sector, are failing to meet local demand and by growing, these SMEs may be able to mitigate the problem as production will increase. This study examines different growth strategies that may help SMEs in the edible oils industry attain growth. The study made use of a descriptive research design. The study selected a sample of 100 respondents through stratified and convenience sampling techniques. For the purpose of collecting data a self-administered questionnaire was made use of. The questionnaire had 3 objectives and under each objective were questions which had to be answered by making use of Lickert‟s five-point scale. Descriptive statistics and inferential statistics were used to summarise data. Pie charts, Histograms and tabulations of regression analysis, ANOVA and Bartlett‟s Test were constructed by making use of SPSS and these were used to explain different phenomena. The findings that were deduced from the research is that the growth strategy of hiring qualified and experienced personnel by SMEs in the edible oils industry helps stimulate growth, the macro-environmental factor of lowering tax rates and interest rates for SMEs in the edible oils industry results in the reduction of SMEs cost structure which in turn leads to growth of SMEs in the edible oils industry and a firm‟s competitive advantage of improved product quality and differentiation by SMEs in the edible oils industry leads to growth. The research concludes that growth strategies such as product development, lowering prices of products, human resource strategy and taking advantage of strategic alliances leads to growth. Also the research concludes that macro-environmental factors that are conducive for growth of SMEs are availability of finances, technology advancement and political stability. More so, conclusions made by the research are that experienced and knowledgeable human capital, quality products, creativity and positive characteristics of a manager as a firm‟s competitive advantages help stimulate growth. Recommendations made by the research is that management must be innovative in their product offering, management should scan the environment before they implement strategy and there is need for research and development in order to learn how other companies in the same industry are operating their business.