The Factors Influencing SMEs Growth in Africa: A Case of SMEs in Zimbabwe

Kosmas Njanike

A chapter in Regional Development in Africa from IntechOpen

Abstract: Today Africa reports high levels of unemployment among other social issues causing governments' instability and low economic growth. Brain drain, low gross domestic product (GDP) per capita and growth reported across the continent requires an initiative on driving entrepreneurship development. The study seeks to investigate the determinants of small to medium enterprises (SMEs) growth in developing countries with a special focus on Zimbabwe. Informed by literature, the Zimbabwe Finscope Business Consumer Survey (2012) data was used to run a linear programming model regression analysis on the factors influencing SMEs profitability in that country. The study found that number of business units, education level, business type, family run businesses, expertise, licenced, advertising and bank account were significant in influencing SMEs profitability. The results will assist policymakers, development partners, entrepreneurs and other stakeholders. The insight can also be useful to venture capitalists, investment banks, investors and other financiers. There is need to support the millions of SMEs and future entrepreneurs in improving the regulatory and business environment, improving institutional support systems, promoting technology transfers, innovations and improving productivity.

Keywords: entrepreneurial development; Zimbabwe; business; employment (search for similar items in EconPapers)
JEL-codes: Q01 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:192111

DOI: 10.5772/intechopen.87192

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