Online Reporter
Nelson Gahadza
The absence of a deliberate growth strategy remains the single biggest barrier preventing entrepreneur-led firms from evolving into sustainable institutions, experts have said.
Speaking during a panel discussion at the Zimpapers public lecture this morning, founder and chief executive of the SMEs Association of Zimbabwe, Mr Farai Mutambanengwe said many local enterprises are trapped in survival mode as they do not have a long-term vision.
“The single biggest reason an entrepreneur-run business fails to become an institution is the mindset in which it is established,” he said.
“A lot of businesses are set up for survival or as lifestyle ventures, but without a growth strategy to become national, regional or even international players.”
He noted that while Zimbabwe’s SME sector has expanded rapidly in recent years, much of that growth is informal and lacks the structural planning required for scalability.
“If you start small with no intention to grow, that becomes the ceiling of your business.”
Another panellist, ACR Solutions chairman and executive coach, Mr Bothwell Nyajeka reinforced the need for businesses to transition from founder-driven operations into systems-led institutions.
“As an entrepreneur, you are driven by your own energy and ideas, but institutions are built to outlive individuals. That is why companies that have existed for decades focus on strong governance, quality products and continuous reinvention,” he said.
Mr Majeka added that successful institutions evolve beyond their original business models, citing how global firms have diversified across sectors over time.
“You must constantly reinvent yourself. What starts as one product or service must adapt to changing markets,” he said.
Another panellist, Mr Batanai Mukonzo, Head of SME Banking at CBZ Holdings, said a key distinction between a small business and an institution lies in sustainability and independence from the founder.
“If a business cannot function in your absence, then it is still a job, not an institution,” he said.
“We need a shift from individual-centred enterprises to process-driven organisations.”
Mr Mukonzo highlighted that many SMEs struggle to access funding due to weak documentation and informal practices.
“Entrepreneurs often rely on handshake deals with no records. When they approach banks, there is no evidence to support their story. Documentation, governance and clear systems are essential if businesses are to be bankable,” he said.
Mr Mukonzo added that a defined market strategy and value proposition are equally critical, warning that many entrepreneurs operate without a clear focus.
“Most are hustling across multiple opportunities without clearly stating what they offer the market; hence a strong value proposition is what differentiates a scalable business from a survival activity,” he said.
Mr Mukonzo also underscored the importance of governance structures, including advisory boards, to improve accountability and decision-making.
