Online Reporter
Ray Bande
Senior Reporter
DURING an interactive dinner hosted by Mega Market in Mutare last Friday, where industry leaders and businesspeople gathered to exchange ideas, National Chairman of the Small to Medium Enterprises Advisory Council and Environment Management Authority board member, Bishop Moses Mwagura made an interesting point.
“The backbone of any country’s economy is formed by industrial activities, but in Zimbabwe, we can count on one hand the number of industries that still exist.
“As Ministry of Industry and Commerce, what policy, strategy or plans are there to harness the lucrative base starting from SMEs, who make more than 60 percent of our GDP and more than 80 percent in employment, for them to become conglomerates?
“How many of our SMEs are graduating into corporates? How many of our SMEs are managing even to list on the Zimbabwe Stock Exchange? Very few! Which means there is no movement from SMEs to becoming big corporates.”
One of the fundamental principles of business growth is to think big, start small, and then scale up or risk failure.
For years, many SMEs, which have become the backbone of the country’s economic activity, have struggled to understand why their projects have failed to grow.
Despite their ability to stay afloat, they have not been able to transition from small or medium-sized businesses to corporate or conglomerate status. Just as a baby develops by sitting, crawling, standing, and eventually walking, one would expect SMEs to follow a similar growth trajectory.
However, this is often not the case.
The failure of SMEs to transform into large corporations highlights the importance of innovation, resilience, and customer focus, as well as their attitude towards business management.
Key themes in the path to growth include the need for continuous improvement, the value of learning from failures, and the power of teamwork.
Conformity is the antithesis of freedom and growth, whereas innovation distinguishes leaders from followers, underscoring the importance of adaptability and evolution in any entity’s growth trajectory.
Growth is never a mere coincidence – it is the culmination of various forces working in tandem.
However, not all change constitutes growth, just as not all movement is progressive. It is a fact that businesses face immense pressure to grow and evolve rapidly to remain competitive, but growth can be challenging.
Even the most intrepid entrepreneurs sometimes require an extra dose of inspiration. In an economy beset by sanctions and volatile exchange rates, unique challenges arise when attempting to grow a business.
Nevertheless, every problem presents an opportunity for growth, as motivational speaker and writer Tony Robbins aptly puts it: “Every problem is a gift — without problems, we would not grow.”
Ultimately, the greatest indicator of success is not our current position, but the direction in which we are moving.
Against this backdrop, the attitude of SMEs towards Government policies designed to stimulate growth, as well as their attitude towards their own businesses, will ultimately determine their growth trajectory.
Permanent Secretary in the Ministry of Industry and Commerce, Dr Thomas Wushe highlighted several empowerment programmes initiated by the Second Republic that SMEs can leverage.
“These programmes include the establishment of banks dedicated to supporting SMEs, as well as funds specifically set aside for empowerment purposes. Notably, the Zimbabwe Industrialisation, Growth and Reconstruction Policy, launched in Mutare in October 2024, envisioned the creation of a fund to support industry. I am pleased to announce that the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube launched this fund during the Zimbabwe International Trade Fair (ZITF), allocating ZWG$100 million.
“This fund is now operational, managed jointly by the Venture Capital Company of Zimbabwe and the Ministry of Industry and Commerce. Its primary purpose is to support value chains, with priority given to those operating within the 10 sectors identified in the National Development Strategy 1 (NDS1). These sectors include bus and truck manufacturing, pharmaceuticals, and agro-processing. SMEs can exploit these avenues to grow their businesses,” he said.
Indeed, these avenues present opportunities that SMEs should capitalise on to drive growth.
In summary, as the Minister of State for Manicaland Provincial Affairs and Devolution, Advocate Misheck Mugadza, aptly put it: “There is undoubtedly room for growth among our SMEs, and this growth trajectory begins with one’s attitude towards their business, as well as their attitude towards Government policies and programmes designed to foster SME growth and development in general.”
