An Analysis of The Factors That Affect Adoption of Growth Strategies by SMEs

Tshuma Nothando, Simbarashe Gwata, Smarntha Shonhiwa and Amos Mpofu
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Tshuma Nothando: National University of Science and Technology, Zimbabwe
Simbarashe Gwata: National University of Science and Technology, Zimbabwe
Smarntha Shonhiwa: National University of Science and Technology, Zimbabwe
Amos Mpofu: National University of Science and Technology, Zimbabwe

International Journal of Research and Innovation in Social Science, 2022, vol. 6, issue 5, 705-713

Abstract: The nature and scope of Zimbabwean enterprises has significantly changed in the last two decades. Small and Medium Enterprises now drive the economy hence the widespread interventions and emphasis on them by government and other stakeholders. However, these SMEs still struggle to grow. A major cause could lie in the growth strategies that they employ. This study sought to analyse the factors that affect adoption of growth strategies by SMES.A descriptive survey was used. The study divulges that owners or managers who have attained tertiary education are more likely to adopt market penetration strategy, product development and human resource strategy rather than marketing strategy. Research results also showed that technology significantly influences their adoption of growth strategies. Those SMES with formal organisational structure are likely to adopt marketing strategy. The SMEs are recommended to be proactive when choosing growth strategies. Environmental scanning is essential before they embark on a particular growth strategy in order to be informed of the circumstances that may hinder the successful implementation of the growth strategies.

Date: 2022
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