Employment creation through SMEs

It must be mentioned that SMEs have contributed in the economic growth of Zimbabwe since the econimic melt down. The situation worsened in 2002

 The Bulawayo Light Engineering Project provides an avenue for small-scale entrepreneurs in Bulawayo and the broader Matabeleland Province to create economic self-reliance. This is achieved through a service centre where artisans hire time on precision machinery, as well as Business Shop, where capital goods are then sold.

The project is developing and testing a model for the creation of sustainable jobs and incomes among small-scale and marginalised artisans. It also seeks to increase opportunities for entrepreneurs to create or expand their businesses by making small-scale and affordable capital goods readily available. Ultimately, the model will be documented, shared and disseminated widely if successful.

employee at the first day of work

UNDP is supporting the institutional capacity of the Social Fund for Development.

Greater and wider benefits will, however, go to indirect beneficiaries. These consist of small enterprises that will purchase equipment and capital goods produced by artisans to start their own businesses. 20 small-scale capital goods consisting of maize grinding mills, peanut butter makers and candle moulds were sold during the year under review.

The main benefits consist of increased incomes for artisans and small producers that buy capital goods and start their own businesses. Some of the most successful artisans have reported monthly incomes in the region of £450-£1,000 per month. Jobs have also been created for unemployed people especially youth and women. These groups usually suffer more unemployment levels than men do. Each artisan who is a regular user of equipment provided by the service centre employs at least one assistant artisan. The project has therefore contributed to the creation of at least 200 sustainable jobs. 

According to the New Zimbabwe, the is need to promote collaboration between SMEs and large producers to create joint ventures, market access and buy-back arrangements, as well as promote skills transfer, technology development and marketing expertise.  However this will increase small business access to procurement opportunities and include them in the government supply chain. These opportunities will provide experience and income for local small businesses and thus enhance their potential for growth, development and employment creation.