Financing the ‘working of talents’ Ventures: The Role of Innovative Finance

Kapesa, Tonderai; Kufakunesu, Faustino; Cheza, Alexander

doi:10.1163/9789004446670_005

Cited by 1 publication

(5 citation statements)

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“…Therefore, this study surveyed the survival of micro, small, and medium enterprises (MSMEs) in Zimbabwe, a resource-constrained developing country. The Zimbabwean economy is anchored on the activities of MSMEs in terms of GDP contribution and employment provision (Kapesa, Kufakunesu, & Cheza, 2021). The institution of national lockdowns in Zimbabwe was abrupt, giving businesses insufficient time to procure and sell enough to cover the expenditures incurred during the lockdown period.…”

Section: Problem Statementmentioning

confidence: 99%

“…Scholars, academics, and practitioners have attempted to define MSMEs from various perspectives using several variables. The result has been a wide array of definitions of micro, small, and medium enterprises classified by geography, economic groupings, and economic sectors (Kapesa et al, 2021). Therefore, a contextual definition of MSMEs is important to guide the discussions that follow in this study.…”

Section: Definition Of Micro Small and Medium Enterprises (Msmes)mentioning

confidence: 99%

“…In Zimbabwe, the Small and Medium Enterprises Development Corporation (SMEDCO) and Ministry of Small and Medium Enterprises define small and medium enterprises (Kapesa et al, 2021). The definitions used are guided by the Act of the Parliament of the Government of Zimbabwe (GoZ) (2011) and Small and Medium Enterprises Act 6 of 2011 (Chapter 24:12).…”

Section: Definition Of Micro Small and Medium Enterprises (Msmes)mentioning

confidence: 99%

“…These challenges incorporate both internal and external conditions that inhibit entrepreneurs' ability to achieve their objectives (Sugiarto, 2018). Despite the existence of challenges in the running of MSMEs, they remain important to both developed and developing economies, such as Zimbabwe (Kapesa et al, 2021;Kooli, 2020). MSMEs are key providers of employment, contribute significantly to national income (GDP) (Chinembiri, 2011;Zindiye, Chiliya, & Masocha, 2012), and offer economic opportunities to marginalized groups such as children and women as well as alleviate poverty (Bomani et al, 2015).…”

Section: Challenges Faced By Msmesmentioning

confidence: 99%

“…Most financiers, such as banks, require collateral security before they can finance any venture that most MSMEs do not have (Khatri, 2019). Most lenders and providers are comfortable providing resources to larger enterprises than to MSMEs, usually because most MSMEs have trouble maintaining their records (Kapesa et al, 2021).…”

Section: Challenges Accessing Resourcesmentioning

confidence: 99%

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Impact of the COVID-19 pandemic on survival of MSMEs in Zimbabwe

Kapesa,

Nyagadza,

Mugano

et al. 2023

IJFAM

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Purpose: This study aimed to assess the impact of COVID-19 and its associated lockdowns on the survival of micro, small, and medium enterprises (MSMEs) in Zimbabwe, where more than 60 percent of economic activity is conducted through MSMEs. Research methodology: This study was conducted through an online survey of 447 individuals representing MSMEs operating in Zimbabwe. Data were analyzed using the statistical package for social sciences (SPSS), guided by a binary logistic regression model, to assess the impact of COVID-19 on the survival of MSMEs in Zimbabwe. Results: The model showed that the independent variables had a significant impact on the survival of MSMEs, with an overall accuracy of 87.9% in predicting the effects of COVID-19 on the survival of MSMEs. The study concluded that many MSMEs in Zimbabwe were negatively affected by the COVID-19 lockdown, except for those in strategic economic sectors that were not required to close their operations during the lockdowns. Limitations: The major limitation of the study was the low response rate of MSMEs operators from remote areas who could not respond to the online survey because of the nature of their business operations, which is survivalistic in nature and would not afford them time to respond to the survey. Contribution: The study recommends the provision of financial rescue packages by the government, development partners, civic organizations, and government policy realignment to ensure that MSMEs are resuscitated after lockdowns have been lifted. Novelty: This study contributes to the post-COVID-19 discourse, as global economies are rebuilding after the relaxation of COVID-19 related business operation restrictions. This is more important for developing countries that are most negatively affected and require their economies to recover from COVID-19 related economic depression.

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Section: Problem Statementmentioning

confidence: 99%

Section: Definition Of Micro Small and Medium Enterprises (Msmes)mentioning

confidence: 99%

Section: Definition Of Micro Small and Medium Enterprises (Msmes)mentioning

confidence: 99%