A study on strategies for combating corruption in order to enhance sustainable development in small and medium enterprises

Abstract

The aim of the study was to investigate participants’ views on strategies for combating corruption in order to enhance sustainable development in Small and Medium Enterprises (SMEs). Corruption has become a menace and a huge social and economic problem across SMEs sectors. It has increasingly become a threat to SMEs’ sustainable development. The study established that systems and procedures of engaging in formal business have been largely infested by corruption, leading to poor corporate governance in SMEs. The study was undertaken at selected SMEs institutions/settings in Harare Metropolitan Province in Zimbabwe, using a qualitative research approach. The semi-structured interviews with 24 key informants, 2 focus group discussions and 5 documentary analysis procedures were used as the key data gathering tools. The study established that participants perceived corruption as a major systemic and endemic problem affecting entrepreneurs’ livelihoods in the SMEs sector. It emerged that the principal objectives of fighting against corruption are to empower entrepreneurs through funding their programmes, promulgate legislation peculiar to SMEs which can address SMEs’ problems, come up with institutional frameworks which guide policy and standard operating procedures, carry out special training for administrators who interface with SME programs and institute public awareness campaigns to educate the citizens on corruption literature to inform them on how to deal with corruption issues. The fight against corruption is impacted by political, economic, intellectual, perception and attitudinal setbacks. The general agreement was that the fight against corruption in SME institutions should be prioritized and strengthened. And the study concludes that corruption impacts negatively on entrepreneur livelihoods in the SME sector. In terms of implications of the results, the study submits that a multi-agency response to the fight against corruption is imperative. The study recommends further research in this seemingly grey area of SMEs to contribute to the knowledge body regarding the ideal strategies that can be adopted to fight against corruption in SMEs in Zimbabwe.