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Every nation is as great as its entrepreneurs, for they are the cog that propels the apparatus of its economic fortunes for the greater good. Entrepreneurs may establish large companies and grow them, or start small and medium enterprises, acquire change management resources and accumulate them with the aim of expanding their businesses into behemoths.
Thus, SMEs are a driving force behind the shared economic prospects that every nation aspires for. To find out more, our Senior Reporter Joseph Madzimure (JM) caught up with SMEs for Economic Development chairman, Lloyd Bahera (LB), who shared insights into the role of SMEs in economic development.
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JM: May you please share with us why you came up with the SMEs for Economic Development initiative?
LB: The idea of coming up with SMEs for Economic Development came after the realisation that most of the businesses in operation do not appreciate that the Government is there for them. Most of them are of the view that the Government is there to fight them through taxation. So, as SMEsforED, we need to support the Government’s initiatives, and Zanu PF’s inventiveness for economically empowering all citizens of Zimbabwe.
We are saying, let’s grow an idea that we can spread to every ward and constituency countrywide for everyone’s benefit. That is why we came up with the idea of SMEsforED. We are also targeting five million votes for President Mnangagwa to ensure that he completes most of the projects he initiated.
When we are talking about SMEs, we are talking of any business which employs less than 50 people. We can even start from vendors, to small businesses employing a sizable number of people; all classified under SMEs. This is the kind of group of people we are talking about. Even a sole trader belongs to SMEs.
JM: What criterion do you use for one to become a member?
LB: Anyone who wants to be an entrepreneur, anybody who is unemployed, and anyone with a business can be a member of SMEsforED. I say anybody can join, even those still seeking employment opportunities, because we want to mobilise and encourage the formally unemployed to start something for their own livelihood trajectories, their own production and their own personal development.
JM: Are there any openings for those in formal employment?
LB: Even those employed formally can also start projects at home; a small project that can grow and occupy them.
JM: Looking around we see that most young people do not have capital to start income generating projects. How can you assist them?
LB: We can definitely assist them. We work with financial institutions. We have negotiated some financial packages with a number of banks, such as Zimbabwe Women’s Microfinance Bank and Empower Bank for them to access loans. We also mobilised a revolving fund for members, so that they can grow their businesses. The advantage of revolving funds is that they are not expensive and can be accessed by any member.
On the 15th of this month, we are also going to launch the Eco-Pension Fund aimed at empowering SMEs through SMEsforED.
JM: How many members are registered under SMEsforED so far?
LB: We have slightly above 180 000 members throughout Zimbabwe with a target of mobilising 1,2m. Our main aim is to get at least 1 000 members per ward throughout Zimbabwe so the country can achieve its vision of becoming a middle-income economy by 2030.
JM: Some SMEs are having running battles with law enforcement agencies in urban centres. What are you doing to protect them so that they operate freely?
LB: At the moment we are negotiating with both urban and rural council authorities. We are now imploring every council to facilitate work spaces for SMEs. They should not take goods from poor citizens, who are trying to make ends meet. Our idea is to face council authorities and ask them to allocate vending spaces for SMEs in their plan.
SMEs in Zimbabwe play a critical role in economic growth, job creation, rural and urban development and poverty eradication. We are travelling throughout Zimbabwe doing some SMEsforED launches at ward level, so that no one is left behind.
JM: What challenges are you facing?
LB: The problem with the opposition led councils is that they are not positive. If you approach them with a project they are not proactive. We approached Chitungwiza Town Council where we brought in an investor to carry out projects in the dormitory town.
He flew in from Durban, South Africa to Zimbabwe seven years ago, only to be told that they are ready to give him the project if he gives them a kick-back of $3 million. They hardly produce any tangible results because they request bribes.
Online Reporter