Title:
ACCESSIBILITY OF MICROFINANCE SERVICES TO ZIMBABWEAN SMALL ENTERPRISES: A CASE OF HARARE, ZIMBABWE

Authors:
Hosho Norbert Gumbo Victor , Pamu Emmanuel Mulenga

Abstract:
Firmly premised on the notion that microfinance institutions (MFIs) could be drivers of financial performance in small enterprises (SEs), the current study primarily sought to establish the extent to which SEs in Zimbabwe require the services of MFIs for their operations. The research went further to determine the accessibility of different MFI services to SEs in Zimbabwe. The final and most crucial thrust of the study was an investigation of the extent to which Zimbabwean SEs are able to access microfinance services, cognisant of the fact that prior to offering micro-credit and other microfinance services to SEs, MFIs undertake strict assessments of the SEs seeking such services. The research triangulated the qualitative and quantitative designs, whereby the population for the study comprised the many SEs in and around Harare Central Business District. The researchers purposively sampled twenty SEs from each sector from within the population of SEs operating in Harare. The questionnaire was used as a data collection tool. The study established SEs’ selective demand for microfinance services. It was evident from the study that micro-credit is the most popular and accessible microfinance service. Other services were both unpopular and inaccessible, save for venture capital and money transfer services which were slightly accessible. Overall, SEs still have limited access to microfinance services in Zimbabwe. Due to the SEs’ selective demand for microfinance services which was revealed in the study, we notice the need to empirically examine how the much needed micro-credit either costs or benefits the beneficiary SEs. That is, future research ought to focus on the possible nexus between microcredit and financial performance in SEs.