adminLovemore Zigara, Midlands Correspondent
SCORES of small to medium enterprises (SMEs) have begun the process of formalising their businesses in line with Government guidelines.
SMEs are fast becoming a critical pillar in the country’s economy with an estimated five million people believed to be employed in the sector.
The challenges that have affected the manufacturing sector since the last decade and the resultant loss of jobs has also forced many people to establish their own businesses as opposed to seeking scarce formal employment.
Zimbabwe Chamber for Small to Medium Enterprises (ZCSME) deputy secretary general Mr Rabson Hove said most of their membership had heeded the call for them to formalise their businesses.
“Formalisation is not an event but a process. I’m happy to say that 50 percent of our membership are complying and are registering their businesses. Some have started to remit their dues to council while some have started to register with the Zimbabwe Revenue Authority,” said Mr Hove.
“We are, therefore, appealing for patience with the various stakeholders such as Zimra and local authorities among others as the small businesses try to overcome some teething problems in the process of formalising.”
Mr Hove made these remarks during the 2017 Midlands SMEs business awards held at a local hotel in Gweru at the weekend.
He said ZCSME would soon not recognise small businesses, which are operating at undesignated places. Despite the dominance of the sector in the economy, most of the businesses have remained largely informal thereby limiting the sector’s contribution to the growth of the economy and revenue collection base.
In recognition of the immense potential that the sector has, the Ministry of Small and Medium Enterprises and Co-operative Development is on a drive to ensure that all businesses in the sector are registered.
Meanwhile, Zimbuild Properties’ chief executive officer Dr Tinashe Manzungu was named the businessperson of the year at the awards ceremony.
Dr Manzungu is one of the province’s leading property developers and has also interests in the hospitality and financial services sectors.
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