although most of them tend to focus more on cost saving techniques and the creation of sustainable networks (international linkages), such as networks or linkages to resources and to customers as the cornerstone of export performance of SMEs. Some of their views in respect to strategies that can be employed by SMEs to enhance their export performance are summarised in Table 5.31.
Table 5.31: Strategies that can be employed by SMEs to enhance their exports
Respondent Response Comments/Analysis of
Responses Policy
maker (1)
“In order to stimulate exports, strong and specialised export promotion institutions must be established”. InZimbabwe, these institutions are necessary and if well resourced then SMEs will not have any problem at all, the only Zimtrade that we have still need to be fully resourced.”
The suggestions made by policy maker (1) indicate that SMEs and big firms are being assisted by one export promotional institution which becomes inadequate in the provision of export information.
Export Analyst (1)
“Establishment of SMEs consortia and export consortia are a necessary requirement in building critical mass in both production and exports. This is again a critical requirement
The creation of the SMEs consortia is a good export marketing strategy as this will enable SMEs in the
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for Zimbabwe particularly now since the economy is much more informal than before and SMEs are now a dominant feature.
Creating industrial clusters will help the country to formalise the informal sectors which will both help Government collect revenue while at the same time help our industry compete with the global players.”
same line of industry to be grouped at one industrial site and can be managed better and the end result is their
improved export
performance.
Policy maker (2)
“In order to generate exports, there is need to create an enabling business environment by improving the easy of doing business, designing policy and legal framework which is in line with global developments.” “This is again an important lesson from India, Zimbabwe economy is suffering from multiple factors such as rigid labour laws, high cost of utilities (electricity and water), and unnecessary legal requirements which inhibit business which were put in place by the Smith regime such as company registration requirements, multiple tax regimes and unproductive levies from regulatory authorities”. “Most of these cost drivers can be addressed by pen and paper.”
Issues highlighted by policy maker (2) clearly shows that the Zimbabwean government needs to simplify the
procedures, legal
requirements and the way business is done particularly for SMEs so that they become productive.
Export Analyst (2)
“To promote exports in Zimbabwe, there is a need to establish an SME Export Development and Promotion Agency. This will promote export business namely; export marketing, trade and investment missions, participation in international fairs and expositions, trade agreements, training, and seminars, and export market information dissemination and search tools and to assist
The sentiments made by export analyst (2) conforms to the statement made by policy maker (1) that, Zimbabwe should not rely on one export promotion organisation rather it should have many export promotion organisations and in
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SMEs through networks and business support measures.”
particular it should have an
independent export
promotion organisation specialised to help SMEs, rather than having one
export promotion
organisation targeting both SMEs and large firms.
Policy maker (3)
“Developing export infrastructure, the government should help insetting up infrastructure like export industrial estates, export processing zones, and bonded production centres for SMEsto provide a real boost to export development. In Zimbabwe the problems are at a more basic level such as electrical power, water, roads, shipping and telecommunication.”
Results clearly show that for SMEs to boost their export capacity there is need to develop an appropriate and conducive infrastructure with necessary amenities for SMEs.
Export Analyst (3)
“Strengthening marketing channels, many small enterprises are unable to market their goods effectively in existing markets. Small firms continue to lack knowledge of marketing channels and fail to establish marketing networks, or have not entered into strong market relationships with existing customers and as such if marketing channels are strengthened through establish vibrant marketing networks, then SMEs in Zimbabwe may become competitive in international markets or as an option SMEs can work with trading companies to facilitate export marketing or it can act as the marketing channel for a large number of SMEs.”
It is true that SME networks are very low and therefore it results in subdued performance. Therefore, SMEs need to improve its networks and create sustainable relationships with its valued customers to ensure profitable business.
Policy “Adopt cost saving techniques, tough Suggestions made by policy
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maker (4) economic times call for a lean and resource efficient business model. Outdated technology may lower quality and raise cost, making the product uncompetitive in the international markets. Many old technologies in many SME firms have become highly polluting. Sooner or later these SMEs may face exclusion from the market. Furthermore, Knowledge, skills and experience of SMEs have become obsolete and need continuous upgrading. While opportunities for academic qualifications proliferate, SMEs in Zimbabwe have little access to practical training they really need it and as such it is advisable that they continuously update their machines and skills to reduce costs of manufacturing.”
maker (4) clearly show that redundant technology is a major inhibiting factor for the export performance of SMEs and for SMEs to perform better, those machines need to be upgraded and that there must also be appropriate training commensurate with the modern technology so as to reduce cost of doing business since some of the machines are to slow or waste resources in production leading to high cost of doing business.
Export Analyst (4)
“Linkages with transnational companies (TNC-SME linkages), there is need to create a linkage between SMEs and Transnational Companies. The linkage can be backward linkages with suppliers where the TNC will source materials, service parts, appropriate technology from suppliers in the host country on behalf of SMEs or it can be linkages with technological partners where the TNC can start a project together with SMEs in the form of either strategic alliance, joint venture or licensing agreement in which TNC can acquire latest technology or licensing agreements on behalf of SMEs. Furthermore, TNC can link with SMEs through forward linkages with customers. In this case the TNC can link with
Statements made by export analyst (4) concur with those made by policy maker (3) that SMEs have no appropriate networks that link them to relevant customers, to resources and therefore need to link with appropriate partners so that they improve their export performance.
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host distributors, marketing outlets and industrial buyers and this enables SMEs to penetrate the market easily, thus improving their export performance. Again linking with TNCs will have spill-over effect such as human capital spill over effects (SMEs training), demonstration effects, more efficient ways of doing things can be learnt. The TNC can also set standards that may improve the export performance of the SME firm in the long run or can gain access to new export markets.”
Source: Compiled from Primary Data