An Investigation into the Factors Contributing to Lack of Growth of Small and Medium Enterprises (SMEs) in the Furniture Manufacturing Industry in Kelvin North, Bulawayo, Zimbabwe

Abstract

This research investigated the factors that contribute to lack of growth in Small and Medium Enterprises (SMEs) in the furniture manufacturing sector of Kelvin North light industrial site, Bulawayo Zimbabwe. The empirical data to achieve the objectives of the study was obtained through a self-administered questionnaire containing open-ended and closed–ended questions on a sample of forty (40) randomly sampled SMEs. The Likert scale scoring methodology was utilized in ranking the factor importance and frequencies in the study. Four (4) structured in-depth interviews with SME support organizations were also carried out to complement the results of the questionnaire. The study identified, limited access to finance, the lack of entrepreneurial skills, lack of skilled labour force, lack of access to land and unfavourable government policies among others, as the most influential factors constraining the growth of the furniture manufacturing SMEs. However, contrary to theory, lack of management skills was perceived to have a low impact on business growth as there were other factors, as mentioned above, that seem to have a greater impact on business growth ahead of managerial skills. Furthermore, the findings from this study suggested that despite the concerted efforts by the Zimbabwean Government to eliminate barriers to financing, several impediments are still prevalent. These findings have implications for policy makers, given the vital role that SMEs now play in the overall economy that has greatly been affected by de-industrialization, high unemployment and a huge brain drain. Lastly, the study recommends that SMEs, the Zimbabwean Government and other support organizations such as Empretec, ILO and SEDCO take measures to ensure the survival, growth and development of this sector which has the potential to steer the economy. These measures are expected to improve the entrepreneurial skills in the SME sector and consequently result in improved business growth.