A ZANU PF legislator has called on the government to reduce taxes and other burdening statutory obligations for small-and-medium enterprises (SMEs) to allow them to realise growth while urging them to capitalise on the closure of big corporates to dominate the market.
by Everson Mushava
Harare South MP, Shadreck Mashayamombe, who is a member of the Parliamentary Portfolio Committee on Small-and-Medium Enterprises and Co-operative Development, said small companies were failing to realise their full potential because of heavy taxation.
He was speaking at the 2016 global SMEs Expo in Harare last Friday.
The expo was held under the theme Stimulating Economic Growth Through Value Addition and Beneficiation Partnership with Global Entrepreneurs.
Mashayamombe said the government should come up with favourable laws that would stimulate the growth of SMEs that had continued to play a critical role in the economy, but were experiencing stunted growth due to overbearing statutory obligations and repressive laws.
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“There is need for the government to come up with laws that will promote the growth of the sector,” he said.
“The laws should include the reduction of taxes for SMEs to allow them to capitalise their business and graduate into corporates. I also urge the SMEs to capitalise on the closure of big corporates and fill up the gap left.”
Zimbabwe has been experiencing company closures since the Zanu PF government won the 2013 general elections, leaving the economy in the hands of struggling SMEs.
Mashayamombe also implored the SMEs to copy proper business ethics and register their companies into corporates rather than remain sole traders that often die with the death of the owner.
“We should change the way we do business. We should move away from the concept of operating companies as tuckshops or sole traders to ensure that the business survives beyond the founder. There should be continuity in business,” he said.
The legislator also encouraged SME owners to travel to other countries and copy how others do business, particularly on the use of cost-effective equipment.
“Travelling is very important. People should learn new skills through travel and research.”