SMALL to Medium Enterprises (SMEs) have been urged to invest in networking when they do not have capital to fund their businesses.
This comes at a time when a number of SMEs in the country have been complaining over the lack of capital as well as failure to qualify for loans offered by banks that require collateral.
SMEs operate with their revenues, assets, or a number of employees below a certain threshold.
Speaking at a business breakfast meeting organised by the Zimbabwe Chamber of Small to Medium Enterprises (ZCSMEs) in Harare on Wednesday entrepreneur and Zimbabwe Building Contractors Association (ZBCA) President Tinashe Manzungu said SMEs should believe in the power of networks and association.
“There is power in synergies if you are an SME you should rely on other SMEs because partnerships result in you being able to provide your products without even financing them.
“Financing is not always about getting the cash to start a business but it is about coming up with models of partnerships. Once you are in that kind of approach then you are able to do good for yourself in terms of results,” he said.
Keep Reading
- Business opinion: Brand modification against rebranding of SMEs
- Handling scenarios not covered by IFRS
- Destination branding by tourism operators
- African mass food markets as bases for business identities
Manzungu added that compliance with the laws of the country is very key as it is the only way one can create a track record in-terms of doing business.
“Compliance results in you networking, being bankable and confident in the market. Compliance leads to growth and growth leads to the desired person that you want to be.”
Alinial Chartered Accountants representative Last Matema said SMEs should be innovative and need to embrace networking and collaboration as a model of financing.
“We are investing a lot in mindset change, we cannot continue crying on access to affordable finances, we must be innovative.
“The cheapest and most ready model finance is your good relationship with your suppliers and employees,” he said.
Alinial Chartered Accountants is the national advisor of the ZCSMEs.
SMEs are projected to increase production output by the end of this year.