Performance of SMEs

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Investigating the factors that affect the performance of SMEs in the manufacturing sector in Harare, Zimbabwe.

This research investigated the factors that affect the performance of Small and Medium Enterprises (SMEs) in the manufacturing sector of Harare, Zimbabwe.

The research hypothesised that poor management skills: human resources; financial, general, production and marketing management result in the poor performance of SMEs.

A research proposition stipulated that the current hyperinflation environment affects the profitability of SMEs in the manufacturing sector of Harare.

This study is important because SMEs, despite their contributions to the Zimbabwean economy, have not been given due attention as the research of performance has been biased towards large enterprises.

The results indicate that managerial aspects which are in short supply have negative effects on the performance of SMEs.

The high rate of inflation and other economic factors such as foreign currency shortage, interest rate and exchange rate affect their performance negatively.

Lastly, the study recommends that SMEs, the Zimbabwean government and institutions such Empretec, ILO and SEDCO take measures to ensure the survival, growth and development SMEs which has the potential to steer the economy.

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