Impact of Microfinance on Micro, Small and Medium Enterprises Growth in Zimbabwe a Case of Gokwe Town

Maburutse Brian Tafadzwa, Musvutisa Carrington, Chidhumo Givemore, Edwin Chimbira Sibanda, Manyowa Francisca and Chitsvori Morris
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Maburutse Brian Tafadzwa: Finance and Investment: Catholic University of Zimbabwe
Musvutisa Carrington: Musvutisa Carrington: Business & Cooperative Development Officer
Chidhumo Givemore: Ministry of Women Affairs, Community, Small and Medium Enterprises Development
Edwin Chimbira Sibanda: Economics: Catholic University of Zimbabwe
Manyowa Francisca: Western Sydney University, Australia
Chitsvori Morris: Midlands State University

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 7, 1531-1547

Abstract: This study investigates the impact of microfinance services on the growth and development of Micro, Small, and Medium Enterprises (MSMEs) in Gokwe Town, Zimbabwe. Employing a mixed-methods approach, the research combines qualitative interviews with MSME owners, government officials and microfinance institutions, alongside quantitative analysis using binary logistic regression on data collected from 103 MSMEs. The findings reveal that micro-credit access, business management training, group formation, and market access significantly influence MSME growth, with micro-credit and training exhibiting the strongest effects. The study underscores that financial support alone is insufficient; capacity building, social networks and market connectivity are crucial for sustainable enterprise development. Based on these insights, recommendations include enhancing microfinance accessibility, fostering MSME groups, improving infrastructure and promoting policy frameworks that support MSME growth. The results contribute to understanding microfinance’s role in economic recovery and poverty alleviation, offering practical pathways for policymakers and financial institutions to bolster MSME development in Zimbabwe and similar contexts.

Date: 2025
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