The Role of Small and Medium Enterprises in Sectoral Development: An Empirical Analysis of Zimbabwe's Regional Development

Abstract

Literature on Small and Medium Enterprises (SMEs) and sectorial development has been extensive, with various studies investigating the role of SMEs in driving economic growth and development. However, despite the wealth of research, there is little understanding of the impact of SMEs on sectorial development, particularly in the context of Zimbabwe. This study explores the role of SMEs in sectorial development, focusing on Zimbabwe‘s regional development. Drawing on theoretical frameworks such as the endogenous Growth Theory, this research empirically examines the influence of SMEs on sectorial growth and development. Data were collected using a structured questionnaire administered to SME owners/managers across all ten (10) provinces and their 53 districts in Zimbabwe. Quantitative data analysis was done using standard deviation, regression and ANOVA. Results show that SMEs significantly and positively influence sectorial development. The findings underscore the significance of SMEs in driving sectorial development. Based on the empirical analysis, the research recommends that policy-makers implement targeted interventions to enhance SMEs‘ access to finance, infrastructure and markets, thereby fostering a conducive environment for their growth and contribution to sectorial development. Furthermore, the research recommends tailored support for SMEs in different sectors and regions, considering their unique challenges and opportunities.