Initiatives For The Growth And Promotion Of Me Case Study

Small to medium enterprises (SMEs) have become increasingly important to Zimbabwe 's economic growth. Given the increasing number of retrenches due to the economic downturn Zimbabwe experienced, SMEs offer the best alternative means of livelihood for most people. There is therefore, need to support the growth of this sector so that it contributes more meaningfully to national economic development. One of the major problems Practical Action Southern Africa has established as an impediment to the growth of SMEs is lack of proper working capital management systems. This presents a major constraint to their financial performance and their survival. Given the current economic hardships hampering economic progress in Zimbabwe the SMEs industry in one of the key industries where the economy is pinning its hopes. However due to the stringent requirements in the financial sector it is proving to be very difficult for the small firms to secure enough funds to sufficiently finance their operations,

It seeks to improve financing, provide assistance in the form of training to local enterprises and micro, small and medium-sized enterprises (SMEs) and to reduce the cost of doing business. The initiatives undertaken by the BEDB and other government ministries and agencies to promote local business development include various grant, subsidy and loan schemes; investment funds; training programmes, and advice and information

SME?s are defined in a variety of ways by various countries using such parameters such as a number of persons employed, capital invested, turnover or nature of the business etc?.not only different countries apply different definitions on the concept of SME?s even within countries, different regions and different institutions adopt varying definitions in this regard.

Based on a survey of 139 banks in 16 countries, Rocha et al (2011) investigated the status of financing to SMEs in the Middle East and North Africa (MENA). The researcher found out that in spite of a good and viable environment which prompted the growth of the segment, the SME sector in these region remains largely untapped (Schiffer and Weder, 2011). Government assistance through low interest rate, public banks, guarantee schemes and other forms of subsidized financing play a key role in the development of SME.

• Motivate the tension between investment policy and financial policy with respect to the sources and uses of cash.

According to The National Center for the Middle Market (NCMM) is a research center located at The Ohio State University Fisher College of Business. The center conducts research about and for middle market companies. The center focuses its efforts on five areas: research, outreach, events, student programs, and policy to spread awareness of the middle market, which is defined as businesses with revenues from $10 million to $1 billion dollars.

We realize that SME’s are crucial for UK economy, In first quarter of 2013 there were around 4.9 million businesses were private, among those 99.9 % were SME’s. Almost 44% of SME’s are using external finance; reportedly bigger SME’s are using more external finance.

of resource exploitation and scale do not add much more value to the products or services like other knowledge-based industries (biotechnology or IT). The cluster approach assembled around the pattern of innovation and entrepreneurship characteristics can help to improve these kinds of industries. Nevertheless, the

The financing for Small and Medium-sized Enterprises (SMEs) is an interesting subject for policymakers and researchers because of the major contribution of SMEs to private sectors all over the world and SMEs are deemed financially constrained (Beck et al, 2010; Berger and Udell, 2006). SMEs in industrialized countries account for more than 90% of all enterprises, contribute to around two-thirds of all workforce and almost 50% value added in non-agricultural production. Therefore, SMEs is crucial for growth promotion and poverty reduction (Baas and Schrooten, 2006).

For a better competition in a new industry, an organization requires resources to invest in. Although, the company has invested heavily in machinery, it still has enough capital for marketing, inventories, product promotion, advertising, training and R & D which has helped in gaining competitive advantage.

Within the segment, small enterprises led the demand for financing: around Indian rupees 6.42 trillion ($116 billion), approximately 74 percent of the total requirement. This was mostly due to unmet working capital and investment finance needs. Micro enterprises with a requirement of Indian rupees 2.05 trillion ($37 billion), accounted for 24 percent. Most of this requirement was largely focused around working capital needs. Women-owned medium-scale enterprises, which account for 0.01 percent of the total MSME sector had finance requirements of around Indian rupees 0.21 trillion ($4 billion), about 2 percent of the total requirement. Microfinance loans for seed capital allow women borrowers build credit habits and become more bankable. Thus, microfinance plays a key role in expanding access to finance for low-income women aspiring

Theysaid that the government must seek to develop programmes to target small and microenterprises. They wish that the government would design a realistic, practical andtransparent regime of incentive and training in order to give momentum to small businessdevelopment. They stress that the ministry must not comprise probity, transparency andissues relating to standard, and quality in its effort to emphasize small businessfacilitation. They suggested that the country needs to educational implementations in place because you cannot put uneducated people to operate business. The graph belowwas gathered at the interview by the authorized officials.

The study by Sapovadia (2007) explores that the typical micro finance clients are self employed, household-based entrepreneurs and low income persons that don‟t have access to formal financial institutions and also lack business skills. Micro entrepreneurs face many huddles in getting started. They sometimes lack the skills necessary to manage the financial aspect of their business line and in large number of cases they indulge in particular business by default. Various micro enterprise development programs have helped micro entrepreneurs in achieving great success and growth. These micro entrepreneur development programs have immensely helped micro entrepreneurs, who look for collateral security, or are in capable to find such collateral needed to secure alone or those who have low credit. They providing them with training support, help in

The Industries Development and Regulation Act, 1951, undertake the legal and conceptual framework for small and supported industries. This act provided essential powers to Central Government to encourage small and medium scale industries. ‘Micro, Small and Medium Enterprises Development Act, 2006’ launched to promote and develop small, medium scale enterprises. This act aims to accomplish long-term goals by government and MSME stakeholders.

This chapter seeks to review available literature on microfinance, the Small and Medium Enterprises (SMEs) and Rural Banking in Ghana. It lays much emphasis on the research questions and objectives of this study.