Re-thinking government policy framework towards resource adequacy for small and medium enterprise performance in Zimbabwe.

Abstract

The government’s commitment to support the policy it has developed is key to the transformation of the policy framework from planning to the implementation process. An effective SME strategic framework is designed to assist the implementation, monitoring and evaluation of programmes that aim to improve the performance of SMEs. The prime objective of the research is to produce a strategic framework that Zimbabwe can implement to improve the performance of SMEs. From this objective, the study aims to assess if the government policies positively influence the performance of SMEs and assess the extent to which government framework provide adequate resources to the SMEs. The study identified what should be incorporated into the policy framework towards improving SME performance. The mixed method research was used in the study following the sequential exploratory strategy which employed both qualitative and quantitative data collection methods. The study followed the dominant sequential mixed strategy which collected data in two phases. The first phase used qualitative data collection methods and analysis followed by the second phase which is quantitative in nature and builds on the information obtained in phase one. The findings of this study revealed that the government crafted policies that promote the SME performance which were not supported with the resources and did not provide meaningful financial assistance to the SMEs. The government lacked capacity building, monitoring and evaluation, resource mobilisation and Information Technology development programmes, to support the performance of SMEs. The findings of the study from both the primary and secondary data sources further revealed that the government’s support to the SME implementers was insignificant and did not make any impact on the performance of the SMEs. The study will contribute to the body of knowledge especially the existing literature of SMEs, focusing on government policy framework and its implementation strategies. The findings would influence the legislature to directly support the SMEs in order to improve their performance. The results would provide insights for policymakers and all SME stakeholders on possible ways to improve on the performance of their economies through planning, implementation, monitoring and evaluation schedules of SME operations.