The role of Microfinance Institutions on the growth and development of Small and Medium-sized Enterprises: The Case of Glen View Area 8 Home Industry Complex
- Author
- Makoni, Tafadzwa
- Title
- The role of Microfinance Institutions on the growth and development of Small and Medium-sized Enterprises: The Case of Glen View Area 8 Home Industry Complex
- Abstract
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Small and medium-sized enterprises have been identified as one of the essential elements for promoting growth and development in Zimbabwe. In order to pinpoint the major barriers preventing small and medium-sized enterprises (SMEs) from accessing microfinance services, this study evaluated the impact of microfinance on SMEs growth. The study was carried out in Glen View Area 8 Home Industry Complex, Harare, with the goal of determining the obstacles faced by SMEs in obtaining microfinance services, then examining the effects of microfinance on the output of SMEs and finally examining the impact of MFIs on the expansion of SMEs in Glen View.
The study used a quantitative research approach using questionnaires as the research instrument to gather primary data. The data was then analyzed using the Statistical Package for Social Sciences (SPSS) and data was displayed in form of tables and figures. The descriptive variable sampling technique and the Solvin’s formula were utilized to choose a sample of 60 SMEs from Glen View 8 Complex that have benefited from microfinance services between 2019 and 2022. According to the study’s findings, a number of obstacles prevent SMEs from growing. The primary barrier to credit accessibility for SMEs in the onerous process, which has high interest rates and collateral security as main drawbacks. According to the research findings, microfinance institutions (MFIs) have got a favorable impact on entrepreneurial performance as assessed by production. Apart from that, the study also revealed that MFIs considerably contributed to the growth of the SMEs sampled in Glen View.
To be able to realize the full benefits of microfinance’s contribution to SMEs development, SMEs need assistance in using the variables that have been discovered to encourage growth. As a result, in order to improve SMEs’ access to financing, MFIs must examine their policies regarding the terms of credit extension and other financial developments. Additionally, the growth of SMEs’ capacity requires government backing through regulations and business extension services.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- SMEs
- Microfinance
- Supervisor
- Mr. Chiriseri
- Item sets
- Department of Accountancy