adminSMALL and medium enterprises (SMEs) have been struggling during the first half of this year due to the liquidity crunch and the uncertainty surrounding the impending harmonised elections, an official said. In Zimbabwe SMEs have been identified as key and strategic in revitalising the economy while universally, they are acknowledged as effective instruments of employment creation and economic growth.
SMEs Association of Zimbabwe founder and executive officer Mr Farai Mutambanengwe told New Ziana that the going had been tough for the entities during the first half.
“There is a liquidity crunch in the economy leading to many SMEs finding it hard to perform to their full capacity,” he said.
Mr Mutambanengwe said some SMEs were dropping from membership as they failed to make it in the business.
“Many are struggling to raise rentals and money to run their business,” he said.
He said banks were also adopting the wait-and-see attitude ahead of the impending harmonised elections.
“If we manage to have free and fair elections earlier we will surely see resuscitation in the industry,” he said.
Japan is an example of a progressive and stable economy that has benefited from development of the SMEs sector which constitutes 98 percent of all enterprises and accounts for 70 percent of employment. – New Ziana
Online Reporter