3.2 T HE E VALUATION F RAMEWORK
3.2.4 Systemic Efficiency
Systemic efficiency is the extent to which the policy interacts positively or negatively with other government actions (OECD, 2004:12). Government has put in place a number of initiatives that are aimed at improving the state and operation of SMEs. However, there is a need for policies to compliment the initiatives even though this might not always be realised. Systemic efficiency is therefore there to assess the interaction of policies with other government actions. Andersson (2000:5) and Skerratt (2006:70) argue that systemic efficiency is an enquiry into how the policy interacts with other policies and ascertaining if there is efficiency.
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ZimASSET (2013:30) is Zimbabwe’s official national policy and in it the government shows that the key drivers for growth and employment creation include the enhanced support of the SMEs sector. The National Policy and Strategy for SMEs (2002:5) therefore dovetails with the national agenda as its overall objective is generating sustainable jobs. The SME policy in Zimbabwe interacts positively with the Government of Zimbabwe’s main agenda, making the objectives of the SME policy achievable as there is a unity of purpose between the two policies.
Additionally, the national policy has a mission to provide and enabling environment for sustainable economic empowerment and ensuring sustainable growth and development of the economy (ZimASSET, 2013:9). The SME policy in Zimbabwe is also guided by a similar agenda which is to create an enabling environment for SMEs to enhance their contribution to national development (National Policy and Strategy for SMEs in Zimbabwe, 2002:5). An alignment between the National and a Ministry’s objectives ensures a concerted effort to achieve the set objectives.
Nyamwanza and Mavhiki (2014:1-2) in a study of the strategy implementation framework used by SMEs in Zimbabwe, argue that ZimASSET was launched with a view to drive economic development anchored to a larger extent on the growth of SMEs. National dependence on SMEs for development and government inclusion of such in the national policy is a reflection of the positive interaction between the government’s actions and the SME policy.
Most researchers in Zimbabwe are of the view that the creation of the MinSMECD to promote the development and growth of SMEs is a positive initiative that could bear the desired results (Chipangura and Kaseke, 2012:4; Dumbu and Chadamoyo, 2012:80). Government action towards SMEs is proactive as it desires to fulfil its mandate of creating employment through enhanced support of SMEs. By creating a Ministry to implement the policy government has shown its commitment to the development of SMEs as well as achieving broad national objectives. In this light there is a positive interaction between the government’s actions and the policy.
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The Zimbabwean government came up with various support measures to support SMEs. Among them were liberalisation policy, preferential purchasing policies of the Central Purchasing Agency and tax amnesties for SMEs (Nyamwanza, Paketh, Mhaka, Makaza and Moyo, 2015:35). These factors are the responsibilities of other Ministries but have been put in place to cater for the development of SMEs in Zimbabwe. Government commitment to the growth and development of SMEs is reflected in its approach of universal support for SMEs. There is, therefore, systemic efficiency as there is a positive interaction between the SME policy and government actions.
Nyamwanza et al. (2015:36) are of the view that the Industrial Development Plan (2012-2016) was crafted with specific provisions on SME growth as they are viewed as important engines for employment creation and growth. Maseko (2014:2) assert that the Mid Term Plan contained the ten National Priorities of which entrepreneurship development came fourth on the list indicating the thrust in government support of SMEs. The prominence of SMEs in government policies is a reflection of their importance to the national development agenda. In this light there is a positive interaction between government actions and the National Policy and Strategy for SMEs in Zimbabwe. Table 3.3 is a summary of the Government of Zimbabwe’s policy actions that interact with the National Policy and Strategy for SMEs. It shows where the policy actions share common interests.
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Table 3. 3 Systemic Efficiency of the National Policy and Strategy for SMEs in Zimbabwe Government Action SME Policy Point of Interaction Description
ZimASSET
Enabling environment to ensure sustainable development of the economy.
Both policies aim at influencing the policy environment to make it conducive for business.
Mid Term Plan (2011-2015)
Provide training in business planning, management and financial training.
Recognition of the limited skills level of SME proprietors and employees.
Restructure and commercialise SEDCO.
Enable SEDCO to fund SMEs as it is the disbursing arm of the MinSMECD.
Enforce the implementation of the legal and regulatory framework for SMEs.
Framework in place as a remedy to SME woes implementation is therefore needed.
Industrial Development Plan (2012-2016)
Establishing a One Stop Shop Set to reduce the time to register a business to 5 days
Develop and strengthen parastatals like SEDCO.
If done enhances the accessibility of finance for SMEs
Short Term Emergency Recovery Programme (STERP)
Fostering relationships between SMEs and large businesses.
To ensure mentorship of SMEs by large businesses.
Incentivise linkages through subcontracting and joint ventures.
Tax breaks and government tenders awarded to large businesses who form linkages with SMEs.
2015 Monetary Policy
SEDCO to be supervised by the Reserve Bank of Zimbabwe (RBZ)
In recognition of the high levels of financial mismanagement at the parastatal.
Adapted from the National Policy and Strategy for SMEs in Zimbabwe (2002), STERP (2009), MTP (2011), IDP (2012), ZimASSET (2013), Mangudya (2015)
Table 3.3 summarises the systemic efficiency of the National Policy and Strategy for SMEs in Zimbabwe by comparing the policy to the national agenda. The table compares the policy to different national policies and discusses the points at which the policies relate. The Policy and Strategy Framework for SMEs in Zimbabwe is supposed to be part of the broader national
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agenda and this was done by comparing the policy to other national policies. The table therefore shows the areas where the SME policy is informed by the national agenda on different policies.