- Title
- Dynamics of agricultural micro, small and medium enterprise life-cycle financing and implications for sector development in Zimbabwe
- Creator
- Kichini, Gilbert https://orcid.org/0000-0003-2972-1023
- Subject
- Agriculture -- Economic aspects -- Zimbabwe
- Subject
- Sustainable development
- Date
- 2021-03
- Type
- Doctoral theses
- Type
- text
- Identifier
- http://hdl.handle.net/10353/20296
- Identifier
- vital:45648
- Description
- Small, micro and medium-scale enterprises (SMMEs) contribute significantly to economic growth, employment and boosting the livelihoods of the poor in Zimbabwe. In the context of the Fast-track Land Reform and Re-distribution programme, agricultural SMMEs are viewed as the main pillar that anchors the recovery of the agricultural sector. Despite the key role they play, these SMMEs operate in a financially constrained environment in which access to funding is limited. In such a context, the ability of the SMMEs to perform their role depends on the strategic use of limited funding. One way to achieve this is to ensure that the funding used at each of the life-cycle stages of the business is the most suitable in addressing the main threats to business success. Much has been studied about how the supply-side factors have constrained growth and development. However, very limited focus has been placed on how SMME owners use the limited funding secured to address the main operational problems faced. The funding behaviour of the owners has to support the supply-side initiatives if the SMMEs are to survive and fulfil their envisaged role in the economy. This study thus analyses the use of funding by the owners along the business life-cycle based on a six-stage life-cycle model. It further analyses the suitability of such funding given the unique operational needs and challenges per stage as well as best practices. The specific objectives of the study are to identify the level of knowledge that SMME owners have about the financing options available and which ones are mostly used, determine the use and suitability of life-cycle financing focusing on agricultural SMMEs and also determine the most suitable life-cycle funding in terms of best practices for sector development. A cross-sectional survey research design was used given the lack of accurate time-series data and it followed a mixed-methods approach. Quantitative and qualitative data were analysed. The owners or managers of agricultural SMMEs and the institutions providing funding constituted the two populations studied. A multiple-stage sampling strategy was used to determine a final sample of 320 owners of agricultural SMMEs while purposive sampling was used to draw a sample of 12 main SMME financing institutions. A semi-structured questionnaire was used to collect data from the owners while an administered semi- structured questionnaire was used for financing institutions. The unit of analysis was the funding used along the business life-cycle. Frequency, binary logistic regression, Chi-Square tests of association and Odds-ratio analysis were used for quantitative data analysis while Qualitative-failure mode, effects and criticality analysis (Q-FMECA) and thematic analysis were used to analyse qualitative data. Results show a persistent rather than transitory reliance on internal funding contrary to theoretical propositions on life-cycle financing. Overall, life-cycle funding used was not in line with best practices for funding SMMEs especially in financially constrained environments where funding should be effectively and efficiently used. The study adds to literature on agricultural SMMEs funding in financially constrained environments and makes offers some policy recommendations to improve financing for development of the key subsector.
- Description
- Thesis (DPhil) -- Faculty of Management and Commerce, 2021
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (278 pages)
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- University of Fort Hare
- Rights
- All Rights Reserved
- Rights
- Open Access
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UFH Department of Economics
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Kichini G 201610668 Economics.pdf | 4 MB | Adobe Acrobat PDF | View Details Download |