Small to Medium Enterprises (SME) are estimated to be contributing 40% of the country’s total gross domestic product (GDP) as the economy regresses, a new report has said.
BY TATIRA ZWINOIRA
In a report after a roundtable meeting on SMEs, the Junior Chamber International (JCI) said the major challenge was capacity and lack of resources faced by SMEs who were failing to adequately service clients as a result.
“The panel highlighted that it was important to take a more sustainable path to success, achieved through organic growth,” JCI said.
JCI is a non-profit international non-governmental organisation of young people between the ages 18 and 40.
“In this regard, it was noted that the experience garnered by small businesses along the way was a necessary process to understanding how to properly do business and expand in a sustainable manner.”
According to the report, the majority of SMEs failed and it was imperative that programmes be put in place to train SMEs as the sector played a huge role in the economy.
In his 2014 national budget, Finance minister Patrick Chinamasa said the old economy was dead and a new one had been born, urging financial institutions to support small to medium-sized enterprises.
It was estimated that 5,7 million were employed in the informal sector.
The roundtable event was attended by chief executive officer (CEO) and Founder of Corporate 24 Mike Joka, CEO of Zimbabwe National Chamber of Commerce Chris Mugaga and business development director for Harare Chamber of Small to Medium Enterprises Edmond Seremani who were the panellists.
JCI has a community of over 200 000 young people in excess of 100 countries working to create a positive impact in nearly 5 000 communities around the world.