TITLE:
Sectoral Dynamics in the Determinants of Micro, Small and Medium Enterprises (MSMEs) Growth in Zimbabwe
AUTHORS:
Moses Chundu
KEYWORDS:
MSMEs, Sectoral Policy, Growth Determinants, Zimbabwe
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.10 No.7,
July
24,
2020
ABSTRACT: The study sought to determine whether the sector in which an enterprise operates affects the impact of various determinants of Micro, Small and Medium Enterprises (MSMEs) growth in Zimbabwe. It used of 2012 Finscope national MSMEs survey data which was modeled using probit model on a sample size of 3222 with growth as the binary dependent variable. MSMEs were divided into four main sectors being Agriculture (A), Wholesale and Retail (WR), Manufacturing (M) and Others (O). The bulk of the variables exhibited similar behaviour as in the main aggregate model. However, owner characteristics being age of entrepreneur, gender and marital status, whilst insignificant determinants in the main model, they behaved differently when data were disaggregated by sector. The coefficient of AGE became significant in the manufacturing sector and other sectors, coefficient of GEN being significant in the wholesale and retailing sector whilst the coefficient of MS was significant in the agriculture sector. The implication for policy is that the demographics of the MSMEs need to be taken into consideration in coming up with policy interventions to grow the sector.