adminCephas Mandingwa
As we celebrate 35 years of Independence it is worth while to reflect on what this means to us as Zimbabweans in general and entrepreneurship in particular.
We pay tribute to the gallant fighters who made the present political, social and economic dispensation possible. In our reflection we need to appreciate the environment presented to the entrepreneurial world and compare it to what it would have been, say in 1972.
Independence opened up unfettered access to factors of production to Zimbabweans without segregation.
Equal opportunities were presented to all. Let’s therefore keep our eyes on the ball and perpetuate what we have at hand.
The black Zimbabwean majority should take advantage of opportunities presented to them in the post-independence era and empower themselves economically. Entrepreneurship through the Small to Medium Scale Enterprises (SMEs) present this opportunity.
The Government on the other hand should create an enabling environment for the SMEs to operate efficiently.
According to Cronje, Du Toit and Motlatla (2000) entrepreneurship entails the establishment of a business and the risking of capital in mobilising resources to satisfy society’s needs and to make a profit. It can also be described as the process of bringing together creative and innovative ideas and combining these with management and organisational skills. This is done in order to combine people, money and other resources to meet an identified need and thereby creating wealth. On the social front entrepreneurship results in poverty eradication and improved standards of living. It is an essential tool for improving the standards of living in a society and the stability of a country.
Through entrepreneurship high rates of unemployment can be combated and poverty levels reduced.
Franz (2000) noted that the Zimbabwean Government cannot create more jobs itself, hence the greater part of the solution to unemployment lies in mobilising new businesses, particularly the job-intensive SMEs in the manufacturing sector.
Therefore, the Zimbabwean Government will have to make small business growth a primary objective if it wants to achieve the goal of improving the standard of living of citizens.
In view of this Government should make the SME policy vibrant and walk the talk. On paper the Zimbabwean SME policy is good.
It would be beneficial therefore to realise that this sector is now the cornerstone of economies the world over and hence the need to give it due support.
The policy framework that is available should be religiously implemented for the growth of the economy.
Small businesses should be capitalised and provided with working capital. It should be realised that the SMEs do not have funds and neither do they have collateral. It is envisaged therefore that government should guarantee lines of credit.
Since these businesses might be considered a flight risk, it might be necessary for government to help in the financial management of these enterprises initially so that they are able to repay the loans.
Rentals of commercial and industrial buildings are highly prohibitive for sustainable operation of SMEs.
In view of this, it would be beneficial if SMEs were given preferential treatment in the allocation of commercial stands.
Import substitution should be viewed seriously to promote local manufacturing SMEs.
There should be a deliberate Customs tariff regime that protects locally manufactured goods against imported finished products.
Deliberate measures have to be taken by the legislature in enacting laws that protect and advance the interests of SMEs, recognising them as key players in the economy and job creation.
Institutionalised corruption should be nipped in the bud.
There should be transparency in the awarding of tenders with deliberate effort being made to give preferential treatment to SMEs.
SMEs are a key driver for economic development. The Zimbabwean growth story must urgently move from reliance on multinational conglomerate and target local high impact entrepreneurship. Such a holistic approach can break through intergenerational poverty.
The Government should therefore address factors that affect SMEs growth for the growth of the economy.
Online Reporter