ASSESSMENT OF GOVERNMENT POLICIES ON THE PROGRESS OF SMALL AND MEDIUM ENTERPRISES IN BULAWAYO PROVINCE IN ZIMBABWE

Nganga George Kamau, Njeri S. Ngacha (Ph.D)

Abstract


Small and medium enterprises (SMEs) are important pillars of the world economy, and they form a significant percentage of businesses across all countries. However, unfavorable government policies negatively affect their progress.  The study assessed the influence of government policies on the progress of SMEs in Bulawayo Province in Zimbabwe. The study adopted a descriptive design. The study population involved the entrepreneurs and managers operating SMEs in Bulawayo Province. The sample size for the study was 229 participants who were purposively chosen. Data was collected through a self-developed closed-structured questionnaire that was provided to the participants though a drop-pick method. Data was keyed into SPSS program to derive statistical measures. Data was displayed in frequencies, means and standard deviations. On Pearson’s correlation coefficients the findings on government policies were: taxation r(227) = -0.593, p = 0.000, licensing r(227 = -0.733, p = 0.000 and bank rate policy r(227) = -0735, p =0.000. The results gave a negative correlation between government policies and SMEs progress to infer that an increase of unfavorable government policies unfavorably affects the progress of SMEs. The study recommended formulation of sustainable policies by the government including viable taxes, affordable licensing charges, reduced licensing bureaucracies and favorable bank rates to enhance progress of SMEs.

Key words: Government Policies, Taxation, Licensing, Bank Rate Policies and SMEs Progress

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