The small and medium scale enterprises (SMEs) has come a long way on its road to recognition as a major potential economic player.
Challenges such as financial exclusion, lack of operating premises, under-capitalization, poor quality products and many others have characterised their struggle, says the Reserve Bank of Zimbabwe (RBZ).
Chronicling the difficulties which SMEs encounter, the RBZ says the sector had to contend with financial exclusion.
“This has made it very difficult to be part of the mainstream economy or to be recognised by potential funders thus leading to undercapitalisation,” says deputy governor of the RBZ Dr Jesimen Chipika.
Although SMEs have sought to conduct their businesses, the poverty reduction strategy campaign by the Ministry of Finance and Economic Development revealed there has not been a specific policy to provide them with decent business premises to operate from, let alone assistance to source markets notes the central bank.
In the process the result has been inadequate technology and poor quality products robbing the sector of opportunities to strike markets.
While other countries are reaping rewards from their SMEs, local ones have remained on the fringes of the mainstream production lines and the biggest loser has been the Zimbabwean economy.