Small and Medium Enterprises and Distributive Development: An Examination of Regional Disparities in Zimbabwe

Abstract

Distributive disparities have become a pressing concern in Zimbabwe, sparking interest in the potential of small and medium enterprises (SMEs) to drive inclusive economic growth. Inequality is about outcomes (incomes, expenditure and wealth) and opportunities, which relate to resources at the individual‘s disposal. The study evaluates the impact of SMEs on the distributive fairness of resources in Zimbabwe‘s regions. SMEs are increasingly recognised as key drivers of economic development, but their impact on distributive development remains under-researched, particularly in the context of Zimbabwe. Structured questionnaires were used to collect quantitative data from SME owners/managers, drawn from all ten (10) provinces, with a total of 53 districts in Zimbabwe. Quantitative data analysis was done using descriptive statistics, ANOVA, standard deviation, regression and correlations. Results show that SMEs significantly and positively influence distributive development. The study findings have significant implications for policy-makers seeking to promote inclusive growth and reduce regional disparities in Zimbabwe. Major recommendations are to encourage development and finance institutions to design tailored products unique to SMEs while the Government is encouraged to simplify rules and regulations. Distributive disparities have become a pressing concern in Zimbabwe, sparking interest in the potential of small and medium enterprises (SMEs) to drive inclusive economic growth. Inequality is about outcomes (incomes, expenditure and wealth) and opportunities, which relate to resources at the individual‘s disposal. The study evaluates the impact of SMEs on the distributive fairness of resources in Zimbabwe‘s regions. SMEs are increasingly recognised as key drivers of economic development, but their impact on distributive development remains under-researched, particularly in the context of Zimbabwe. Structured questionnaires were used to collect quantitative data from SME owners/managers, drawn from all ten (10) provinces, with a total of 53 districts in Zimbabwe. Quantitative data analysis was done using descriptive statistics, ANOVA, standard deviation, regression and correlations. Results show that SMEs significantly and positively influence distributive development. The study findings have significant implications for policy-makers seeking to promote inclusive growth and reduce regional disparities in Zimbabwe. Major recommendations are to encourage development and finance institutions to design tailored products unique to SMEs while the Government is encouraged to simplify rules and regulations.