The Factors Influencing SMEs Growth in Africa: A Case of SMEs in Zimbabwe

Abstract

Today Africa reports high levels of unemployment among other social issues causing governments' instability and low economic growth. Brain drain, low gross domestic product (GDP) per capita and growth reported across the continent requires an initiative on driving entrepreneurship development. The study seeks to investigate the determinants of small to medium enterprises (SMEs) growth in developing countries with a special focus on Zimbabwe. Informed by literature, the Zimbabwe Finscope Business Consumer Survey (2012) data was used to run a linear programming model regression analysis on the factors influencing SMEs profitability in that country. The study found that number of business units, education level, business type, family run businesses, expertise, licenced, advertising and bank account were significant in influencing SMEs profitability. The results will assist policymakers, development partners, entrepreneurs and other stakeholders. The insight can also be useful to venture capitalists, investment banks, investors and other financiers. There is need to support the millions of SMEs and future entrepreneurs in improving the regulatory and business environment, improving institutional support systems, promoting technology transfers, innovations and improving productivity.

Managerial conceptual competencies and the performance of small and medium-sized enterprises in Zimbabwe

“…By entrepreneurial incapacity, the author meant that entrepreneurs lacked the skills, knowledge and aptitude to both form and nurture a successful business. Regarding Zimbabwe, recent studies (Majukwa 2019;Njanike 2019) on SMEs confirmed the critical role played by managerial expertise in sustaining SME profitability. However, the aforementioned studies, like many of their predecessors, tend to lump competencies together, hence precluding helpful and accurate feedback, and leads to questioning exactly what it means to attain competence (Norman, Norcini & Bordage 2014).…”

Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia

“…Manager's nancial literacy has a direct positive signi cant in uence on the performance of SMEs such as promoting e ciency and increasing market share and sales pro t(Agyapong & Attram, 2019). Education level of entrepreneurs positively in uenced net pro t(Gichuki et al, 2014) and SMEs pro tability(Njanike, 2020). The result of this study indicates that the use of credit increases the pro tability of agricultural MSEs by 22.7%, holding other factors constant.…”

The Influence of Informal Learning in Promoting Entrepreneurial Capacity of Boutique Owners

“…Informal learning is an unorganized and unsystematic view of education. It represents a spontaneous process that enables people to learn at a different pace (Njanike, 2019).The literature indicated a process that enables individual to learn at different pace, but it fails to mention if there are indices responsible for this e.g., socio-demographic characteristics and the extent to which individuals can learn at different pace. Notably, informal learning is void of rules and regulations and does not necessarily entail learning objectives usually covered by formal curricula (Harte, 2019), but rather, aims at the society at large with no imposition of obligation.…”

“…Entrepreneurial capacity plays a pivotal role in the case of SMEs (Njanike, 2019). It entails distinct elements such as passion, integrity, commitment, active learning and analysis, demonstration and practical, leadership and management.…”