Online Reporter
Nelson Gahadza
Senior Business Reporter
THE absence of a deliberate growth strategy remains the primary barrier preventing Zimbabwe’s entrepreneur-led firms from evolving into sustainable institutions, experts have said.
Overcoming this requires a fundamental mindset shift within the SME sector.
SMEs are widely regarded as the backbone of Zimbabwe’s economy, accounting for the majority of business activity and employing a significant share of the workforce.
Most Zimbabwean SMEs operate informally, limiting their ability to access finance, scale up operations and contribute fully to national economic growth.
In recognition of the SMEs’ importance, the Government has introduced initiatives to formalise SMEs, including simplifying business registration processes, promoting financial inclusion and supporting capacity-building programmes.
The efforts are being supported through institutions such as the Small and Medium Enterprises Development Corporation (SMEDCO).
This is designed to integrate SMEs into the formal economy and unlock their growth potential.
Despite this progress, industry experts say structural and mindset challenges continue to hold many businesses back.
Speaking at the Zimpapers Public Lecture Series recently, SMEs Association of Zimbabwe founder and chief executive, Mr Farai Mutambanengwe, said many local enterprises remain trapped at the subsistence level because they are established without 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.”
Mr Mutambanengwe noted that while the SME sector has expanded rapidly in recent years, the growth is largely 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,” he said, warning that without deliberate planning, many enterprises will remain confined to limited markets and short-term gains,” he said.
