5.5 P RESENTATION AND ANALYSIS OF RESULTS ACCORDING TO THE O BJECTIVES OF THIS STUDY
5.5.4 Objective 3: To assess the effectiveness of the Ministry of Small and Medium Enterprises and
5.5.4.1 Descriptive statistics on the effectiveness of the MinSMECD
165
5.5.4 Objective 3: To assess the effectiveness of the Ministry of Small and Medium
166 Figure 5. 11 SMEs consultation of the MinSMECD
With few SMEs getting information on the services available to them there is a likelihood that the challenges faced by SMEs will go unaddressed. Therefore, an open ended question was given for respondents to account for their failure to make use of the services offered by the MinSMECD. The following was the response given by one of the participants:
“A stranger finds it hard to get assistance. You must know or be recommended by someone known in the corridors to get attention.”
The view that the MinSMECD is inaccessible to SMEs unless one has a contact is a deterrent to SMEs who need assistance. In this case some small business operators feel that they are excluded yet the services offered by the MinSMECD are aimed to benefit all SMEs. As highlighted in
167
previous sections the MinSMECD is seen as a representative of SMEs meant to uphold the sector’s interests (Chirisa et al., 2012:126; Dumbu and Chadamoyo, 2012:80).
The pie chart shows that about 16.82 percent of the respondents have consulted the MinSMECD.
It was also important to get these respondents’ experience therefore an open ended question was given. To those who consulted a follow up question was put in place to ascertain the quality of assistance they received. The following two responses are the typical experiences of SMEs when consulting the MinSMECD:
“I consulted on how to market my products but did not get any assistance.”
“The MinSMECD has no resources, the Treasury must avail some funds for the MinSMECD for the smooth running of programmes.”
Therefore, although 16.82 percent of the respondents consulted the MinSMECD the quality of the services failed to meet their expectations as they failed to get the assistance they needed.
Some of the respondents cited that the MinSMECD was underfunded and has limited resources therefore unable to provide services to SMEs. There are also exceptional cases where some respondents consulted the MinSMECD on such issues as registration and they got the assistance that they needed.
Interviews with experts probed on the manner in which consultation is done with SMEs. The following were the responses that were given by the experts:
“SMEs are aware of the existence of the MinSMECD as well as where our offices are.
It’s not possible for the MinSMECD to tell every SME where we are located. Our doors are open to all SMEs and we are ready to address their concerns…They don’t come regularly but they’re our responsibility and we are ready and willing to assist.”
“Although the minSMECD is there the problem is that they are not representative of the problems faced by SMEs in Zimbabwe. You get the sense that they represent the interests of the government instead of their mandated sector. When they are active they assist the
168
informal sector by building markets for them but if we consult them on pressing issues such as the legal framework for the sector or funding you hardly get assistance…”
Responses by experts seemed to vary depending on which organisation the expert was affiliated to. The first expert suggested that the MinSMECD is available to assist and address issues raised by small business operators. In this regard it seems that small businesses are failing to make use of the programmes available. The second respondent however offered a different perspective by suggesting that the MinSMECD is failing to represent small businesses. Assistance seems to be limited to building structures for the informal sector instead of more far reaching contributions such as creating a legal framework that will make it easier for the small businesses to function effectively. The response also seems to suggest that most small businesses consult the MinSMECD to enquire on funding.
The bar graph in Figure 5.12 shows the responses to an inquiry on whether or not any programmes offered by the MinSMECD have been explained to SMEs. The aim is to determine if there are any awareness campaigns designed to inform small businesses of the services available to them. The results show that 89.72 percent of the respondents in this study are yet to get information on the programmes offered by the MinSMECD. Part of the mandate of the MinSMECD is the implementation of the National Policy and Strategy for SMEs in Zimbabwe in which there is an outline of programmes that are meant to benefit small businesses.
169 Figure 5. 12 Programmes explained by the MinSMECD
The bar graph also shows that 10.28 percent of the respondents in this study have made use of the services offered by the MinSMECD. Probing questions were included to get an understanding of the participants’ respondents, below is an outline of two responses from participants in this study:
“They (the MinSMECD) should carry out forums regularly inviting SMEs and deliberate on issues to do with challenges the SMEs are facing.”
“Very encouraging but without funding it does not bear fruit.”
170
The responses show differences in the experiences that SMEs which make use of the MinSMECD’s services have had. While some have been encouraged, the lack of funding still remains a major issue for small businesses. Small businesses recognise the importance of the MinSMECD as shown by the call for forums in which SMEs can consult with the MinSMECD.
Below is an outline of an expert’s opinion concerning the MinSMECD’s programmes meant for the benefit of small businesses:
“We hold seminars with SMEs teaching them how to manage their businesses…there are areas that have been designated for SME activities where we can build markets for them to operate in an effort to address issues of business premises…”
The response show that Ministry has some initiatives that are meant to benefit small businesses that include hosting seminars on improving their businesses and designating areas from which they can do business.
5.5.4.2 Small businesses perception of the MinSMECD