Exporting barriers hindering the internationalisation of smale and medium enterprises in the arts and crafts sector in Harare, Zimbabwe

Abstract

The arts and crafts sector in Zimbabwe belongs to a number of industries that are collectively combined and defined as cultural industries. Despite being diversified, little is known about the contribution of the cultural heritage sector to national economic growth. The contribution of cultural products to national trade is less than one percent of the value of total exports of all products. This dissertation focuses on identifying the exporting barriers that hinder the internationalisation of Small and Medium Enterprises (SMEs) in the arts and crafts industry in order to draw conclusions that can be used to enable the sector to realise its full potential. The data was collected from a survey of 58 SMEs in the arts and crafts sector that were selected using random sampling. Interviewer-administered questionnaires were used to collect the data from the sample. Follow-up interviews were conducted to clarify some of the responses. Data were analysed using descriptive statistics methods such as bar graphs, pie charts and the arithmetic mean. The results revealed that the most common barriers hindering the internationalisation of SMEs include lack of financial resources to finance exports, high transportation costs, high cost of capital to finance export, poor economic situation in foreign markets and lack of incentives from the home government. Findings also indicated that export support services offered by the Zimbabwean government are not adequate in assisting the export development of SMEs in the arts and crafts sector. The research concludes that exporting is not trouble free but is affected by several barriers that vary in their severity and significance. Managers/owners of SMEs and relevant government institutions need to be fully prepared in order to tackle and minimise the exporting barriers that hinder the internationalisation of SMEs. Organisations such as Small Enterprises Development Cooperation (SEDCO) and financial institutions need to provide funding to SMEs so that they can develop their exporting capacity. The government should improve the provision of export support services and increase the awareness of such services where they are available.