SMEs and Banking sector summit on cards

11 Jan, 2015 - 00:01 0 Views
SMEs and Banking sector summit on cards SMEs believe they have the potential to make a difference

The Sunday Mail

SMALL to Medium Enterprises (SMEs) will hold the third SMEs summit in March as stakeholders try to smoothen the relationship between financiers and small businesses.

The summit, which is now an annual event, will be held in Harare.

It will be hosted by local advisory firm Deat Capital in conjunction with the Ministry of Small to Medium Enterprises and Co-operative Development.

Deat Capital managing director Mr Nicky Moyo told The Sunday Mail Business in an interview that the summit is designed to impart knowledge to SMEs on how to access funding, particularly given the important role the sector plays in the economy.

“This year’s summit will build on the Zim Asset agenda. SMEs have been the drivers of economic growth in the past years.

“Their growth will see the development of the economy, yet they lack funding or sometimes even the knowledge on business strategies. Inculcating these among SMEs will see the sector growing further,” said Mr Moyo. He also acknowledged Government’s efforts in providing support to SMEs.

In the 2015 National Budget, Finance and Economic Development Minister Mr Patrick Chinamasa made interventions that were deliberately meant to spur activity and growth of small businesses.

Part of the measures include capacitating the Small and Medium Development Enterprise Corporation (SMEDCO) and a US$5 million initial capital outlay for the formation of a Women’s Bank.

However, the summit will also discuss the role of access to finance in creating entrepreneurial firms, the role of financial intermediaries such as banks and private equity investors and innovative financing for women in business.

“Women constitute a significant number of SMEs; therefore, it is prudent to ensure they are capacitated and grow into big businesses,” said Mr Moyo.

The summit will also discuss governance and board structures of entrepreneurial firms and its impact on the development and success of companies. Representatives from the Ministry of SMEs, the Reserve Bank of Zimbabwe (RBZ), the Zimbabwe Revenue Authority (Zimra), Bankers’ Association of Zimbabwe (BAZ) and SMEs bodies are expected to participate at the event.

The SME sector in Zimbabwe cannot be ignored as it provides around 70 percent of employment and contributes significantly to the Gross Domestic Product (GDP). An enabling environment for the sector is crucial to ensure its further growth.

It also provides scope for financial sectors to tap into that market as relatively huge sums of money are believed to be circulating outside the formal banking channels.

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