Evaluation on the impact of debt finance on the growth of small to medium enterprises (SMEs) in Harare, Zimbabwe
- Author
- Muza Tendayi
- Title
- Evaluation on the impact of debt finance on the growth of small to medium enterprises (SMEs) in Harare, Zimbabwe
- Abstract
- This study was conducted to find out the relationship between debt finance and the growth of small and medium enterprises operating in Harare, Zimbabwe. The study was conducted to address the following specific objectives. To examine the nature of debt financing facilities offered to SMEs in Harare, to determine the level of growth of SMEs in Harare, to determine the relationship between debt financing facilities and growth of SMEs. The researcher used a cross sectional survey design to establish the relationship between the dependent and independent variables and to exhaust all areas in the research. A sample size of*40 SMEs in Harare was used. Questionnaires were used as one of the research instruments to collect primary data and interview were also used to collect primary data. Data pertaining to the usage to debt finance by SMES and growth of SMEs was conducted using descriptive statistics. Descriptive statistics was chosen to statistically illustrate the relationship between the variables. Researcher adopted the use of tables and pie chart to analyze the research findings and results are then discussed in line with the research objectives. The results indicated that bank loans, trade credit and bank overdraft facilities had an overall positive relationship with the business growth. The study concludes that debt financing facilities are relatively important for growth of small and medium enterprises. It also recommends the need for government to revise the lending policies, terms and conditions, reduction of interest and lastly improve management of these small to medium enterprises to achieve business growth.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Financial debt
- Growth
- Small and medium enterprises
- Supervisor
- N/A
- Item sets
- Department of Banking and Finance
- Media
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Tendayi MUza.pdf