‘SMEs are potential drivers of economic growth’

Business Reporter

SMALL-to-medium scale enterprises have a huge potential to drive economic growth through increased production that can propel the country to a middle-income status by 2030.

This was said by the director of the International Labour Organisation (ILO) country office for Zimbabwe and Namibia, Ms Hopolang Phororo, during the 3rd awards ceremony for the Simuka-Phakama Green enterPRIZE Innovation Challenge for the Southern region held in Bulawayo last Thursday.

Considering that SMEs employ 95 percent plus of the world’s working population, this is a potential engine for growth that the country could build on in the transition to a more productive, job-rich and sustainable economy, she said.

“Together with the increased numbers comes the challenge of consolidating results. The project will succeed, only if the entrepreneurs we take on board find ways to expand their businesses, by tapping into new markets and creating innovative and profitable solutions to existing and future environmental problems,” said Ms Phororo.

Empretec Zimbabwe was one of the implementing partners of the Green Enterprise Competition together with ILO in Masvingo, Bulawayo and Matabeleland South provinces. The organisation was instrumental in promoting the business competition and giving support to medium and small-to-medium enterprises (MSMEs) who were applying. Empretec also collaborated with ILO and other partners to equip the participants with adequate information about the green business concept and 14 of the winners were supported directly by the organisation throughout the application process.

Ms Phororo said from SMEs they visited in Bulawayo last Wednesday, they learned about the challenges that small enterprises face on a day-to-day basis including those related to the transitioning process and the unfavourable macroeconomic situation that the country is facing.

“And to the managerial capacity of business owners and the availability of a skilled workforce. It is our responsibility to tailor-make, with the support of our partners, our services in order to identify effective strategies to address these constraints, both at company level and while advocating for a better business environment,” she said.

Ms Phororo noted that expansion and consolidation was also a difficult equation for SMEs and that growth cannot happen without first ensuring that the results achieved were sustainable.

“Your success benefits Zimbabwe and going green through economic diversification is our desire. We count on the support and engagement of various partners that can definitely contribute to the achievement of our ambitious goal.

“First, our tripartite partners, who are strongly committed to the project through increased dialogue are making important steps towards decent work. Secondly, four BDS implementing partners have been in the forefront to raise awareness about the Simuka-Phakama values and aspirations,” she said.

She said organisations such as FineTouch Consulting, Royal Business Consult Trust, Boost Fellowship Trust and Empretec have established decentralised information desks and greatly contributed to the outreach of this year’s competitions in the two regions.

“Other partners are coming on board through the provision of customised business development services: experts and mentors from different backgrounds, financial institutions, innovation hubs, corporates, training institutions and business associations.

“It is our goal to secure more partnerships for the project and beyond these key actors, who can influence the future of work in Zimbabwe by addressing both the demand and supply of skills for a green economy,” said Ms Phororo.

It is hoped that the drive will contribute towards the country’s progress in meeting the Sustainable Development Goals by ensuring inclusive growth through job creation. Economic experts have said that sustainable growth requires a functional private sector that ensures the development of enterprises, particularly in new growth sectors encompassing the green economy. These and other issues are what the ILO is putting up for consideration with the tripartite partners in national and sectoral development policies, she said.

“Jobs are the most sustainable way to ending poverty and inequality. As such, deliberate measures are needed to expand opportunities for young people and enterprises in the form and manner of employment creation policies and measures,” she added.

Speaking at the same occasion, Permanent Secretary in the Ministry of Public Service, Labour and Social Welfare, Dr Judith Kateera, said Government was committed to working in collaboration with the ILO to make decent work a reality for Zimbabwean’s youth, developing skills, technological pathways and productivity for a brighter future in the country. 

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