International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

Assessing the Role of Informal Manufacturing SMEs and Effectiveness of Government Economic Programmes to Enhance their Performance in Zimbabwe

Author(s): Matsongoni H, Mutambara E

 The informal SMEs sector plays a critical role in respective economies globally and especially in the African continent. There is great need by the respective government to assist the informal manufacturing SMEs sector because of the significant role the sector plays towards employment creation, economic growth and development. This paper assesses informal manufacturing SMEs role and the effectiveness of government support on their performance in Zimbabwe. A survey method was used, with 1000 questionnaires being administered on the informal manufacturing SMEs across the five (5) cities in Zimbabwe with a sample of 383 informal manufacturing SMEs. Research results revealed that there is a statistically significant agreement that informal SMEs have an important role on economic growth and development (M=3.9172, SD=0.62553, t (822)=42.064, p<0.0005; informal SMEs have an important role on employment generation (M =3.9004, SD=0.62439, t (822)=41.368, p<0.0005); that government mentorship programmes have been effective (M=3.4354, SD=0.87119, t (822)=14.388, p<0.0005) and mentorship programmes have been effective (M=3.4354, SD=0.87119, t (822)=14.388, p<0.0005). However, there is a statistically significant disagreement that economic programmes aimed at informal manufacturing enterprises have not been effective (M=2.9357, SD=0.69884, t (822)=-2.638, p=0.008). In conclusion, it was recommended that a one stop shop in the form of a Small to Medium Enterprises Development Bank be created, to ensure effective implementation of government initiated programmes

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