The Impact of inflation on SMEs performance. A case study of Bindura town Municipality from period of January 2022 to December 2022
- Author
- Gwenhure, Tendai
- Title
-
The Impact of inflation on SMEs performance. A case study of Bindura town Municipality from period of January 2022 to December 2022
- Abstract
- The purpose of this study was to determine the impact of inflation on Small to Medium Enterprises performance, a case study of Bindura Town Municipality from the period of January 2023 to the period of December 2023. The objective of the study was to see if there is any relationship between SMEs performance and inflation, to evaluate the strategies used by SMEs to survive in inflationary environment and also to evaluate the support that these SMEs are getting from the government. A review of literature was done and various authors agreed that inflation has impact on SMEs performance. The research study was confined in Bindura town. The study drew its subject from SMEs within the town of Bindura. The study made use of the descriptive research design and the case study as a research method. A sample of 50 SMEs was used using stratified sampling. The industry survey employed the use of a questionnaires as research instruments for the SMEs owners. Data collected were analyzed using both qualitative and quantitative techniques and data tables, pie charts and graphs through the use of SPSS were used. The study established that inflation has negative impact on the performance of SMEs sector as it reduces profit, reduce investment potential and reduce the competitive advantage of consumers. The study recommends that the SMEs owners and those who are promising to have their business established in Bindura Town should adopt measures such as keeping overhead cost low, offer products that have low cost and avoid long term loans. Also, the government should fully support the activities of the SMEs sector there contribute much to the development and GDP of the economy.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Impact of inflation
- Small to Medium Enterprises
- Enterprises performance
- Supervisor
- N/A
- Item sets
- Department of Banking and Finance
- Media
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Tendai Gwenhure.pdf