Status of the SMSs

The lead story in The Sunday Mail business section this week was quite revealing. It gave an in-depth account of the goings on is the SME/informal business segment of the economy.According to the Zimbabwe daily news ,online- paper Zimbabwe has generally been alert to the importance of small businesses in the economy but there is not much that has been done to harness this sector so that it can make a meaningful contribution.

The population in this picture is for the residents who are seeking cheap clothing's from SMEs

In terms of ownership, the SME sector is already indigenised with 95% of informal/micro

enterprises, 75% of small enterprises, and 65% of medium enterprises owned by indigenous

entrepreneurs. Conversely, estimates revealthat 5% of the micro, 25% of small and 35% of medium enterprises are owned byforeigners. 

One of the key assumptions that shaped my thinking around indigenisation was the belief that most people preferred formal employment to self-employment.

It is important to also mention that the government has also  given them special initial allowances. Indigenous SMEs entrepreneurs are not economically empowered facing serious lack of capital and industrial fact. The picture below will elucidate the information above.