An evaluation of the challenges that hinder business growth of MSMEs in Zimbabwe. the case of cellphone accessories businesses in Harare (2010- 2018).

Abstract

The primary objective of the study was to evaluate the challenges that hinder business growth of MSMES in Zimbabwe. The researcher used cellphone accessories businesses in Harare as the case study. A positivist research paradigm, a quantitative approach and a survey research design were employed in this study. There are about 541 456 MSMEs in Harare according to Bulls and Bears (2015). The population was made up of these MSMEs owners, managers and low level employees of those targeted cellphone accessories businesses in Harare. The sample size was 250 respondents comprising of 50 respondents from Gulf Complex, 50 respondents from Copa Cabana, 50 respondents from Cameroon Street, 50 respondents from Kwame Mall and 50 respondents from Post Office Mall. Quota, convenience and simple random sampling were used to come up with the sample size. Quantitative data was collected by questionnaires. A total of 250 questionnaires were distributed and 204 were returned, translating to 82% response rate. The data was analysed using Statistical Packages for Social Sciences (SPSS v. 16.0). The study revealed that lack of marketing skills, shortage of foreign currency, poor business plan, lack of capital, competition, Information Technology and legal issues, hinder business growth of cellphone accessories. In order to reduce these challenges MSMEs businesses should get training through seminars held by business experts, locate businesses at the proximity of many clients and borrow from MFIs in groups. The research revealed that locating businesses at the proximity of many clients is effective. The use of swipe machines, selling on credit to regular and known customers, organizing and attending training seminars held by business experts and recruiting skilled and learned workforce are lowly effective strategies. The study found that liberalization policy, preferential purchasing policies to allow market stalls in urban centres and technical and financial support are support systems put in place by the government. The study drew the following conclusions; Firstly, in cellphone accessories businesses both internal and external factors are affecting the business growth of cellphone accessories MSMEs in Harare. The study concluded that locating businesses at the proximity of many clients, use of swipe machines, recruiting skilled and learned workforce, selling on credit to regular and known customers, borrowing from MFIs in groups and organizing and attending training The study concludes that the government of Zimbabwe has ineffective support systems to support MSMEs. Future research may also consider different industries besides the technological industry in Zimbabwe. Large industries in Zimbabwe unlike the Micro, Small and Medium industries can be considered.