Business / Local
SMEs generate up to US$7 billion - survey
20 Jun 2013 at 14:14hrs | Views
The Small to Medium Enterprises (SME) sector generated revenue amounting to US$7 billion in 2012 according to the Finscope Zimbabwe 2012 Small and Medium Enterprises Survey Report.
The Finscope SMEs survey reveals that SMEs employs 5.7 million people who generated an estimated US$7.4 billion.
However, only 65 percent of businesses in the survey reported turnover implying that the informal sector may be generating much more revenue.
According to the survey, the majority of the SMES are employed in the agriculture sector which constitutes 43 percent while the wholesale and retail business constitutes 33 percent.
An economic commentator, Mr Godfrey Dupwa said the revenue and employment figures revealed by the survey have proved that employment in the country is more than 70 percent, creating the need to reign in the money that is circulating informally.
The survey showed that only 14 percent of SMES use banking services while the rest do not have bank accounts.
The survey illustrated that savings are low amid low access to credit and little risk management.
Recommendations have been put forward for stakeholders to create an enabling environment for SMES such as creating friendly policies, improving technology access and addressing bureaucratic bottlenecks among a host of measures.
The Finscope SMEs survey reveals that SMEs employs 5.7 million people who generated an estimated US$7.4 billion.
However, only 65 percent of businesses in the survey reported turnover implying that the informal sector may be generating much more revenue.
According to the survey, the majority of the SMES are employed in the agriculture sector which constitutes 43 percent while the wholesale and retail business constitutes 33 percent.
An economic commentator, Mr Godfrey Dupwa said the revenue and employment figures revealed by the survey have proved that employment in the country is more than 70 percent, creating the need to reign in the money that is circulating informally.
The survey showed that only 14 percent of SMES use banking services while the rest do not have bank accounts.
The survey illustrated that savings are low amid low access to credit and little risk management.
Recommendations have been put forward for stakeholders to create an enabling environment for SMES such as creating friendly policies, improving technology access and addressing bureaucratic bottlenecks among a host of measures.
Source - zbc
