Embrace technology, SMEs urged

RYAN CHIGOCHE

Local small to medium enterprises (SMEs) should embrace technology to  survive,  maintain and expand their businesses, a government official has said.

The deputy Minister of Women Affairs, Community, Small to Medium Enterprises Development Jennifer Mhlanga said the Covid-19 pandemic has changed the way people conduct business, especially small to medium enterprises.

Therefore,  utilising aspects of digital practice  including e-commerce, social media, search engine optimisation, data analytics , among many, was critical, she said.

“The government recognises that digitisation has great potential to transform and catalyse the growth of industry, especially the SMEs sector.

“Therefore it is of paramount importance to encourage the industry to tap into the opportunities availed through digitisation to enable them to be competitive on the global market,” Mhlanga said.

She said SMEs in Zimbabwe play a critical role in addressing the issues of poverty reduction, job creation and income generation.

According to the Ministry of SMEs, the sector has become the backbone of economic growth and is estimated to contribute 76% of the total employment and 60% of the GDP this year.

The SMEs sector, however, is still  battling lack of access to finances and markets, business know-how, technology, and multiple levies which have impeded their growth with negative consequences for innovation, economic growth.

The challenges have also been exacerbated by the effects of the pandemic which restricted normal business activities in order to reduce transmission of the disease at the workplace.

Mhlanga said the government was aware of the potential that is yet to be realized by the sector.

She added that the government was going to ensure that the SMEs sector leads the drive for economic development as they have put forward programs that address some of the challenges faced by the SMEs.

“So as to combat the constraints, the sector is facing, the Government through the National Development Strategy 1, is implementing various programs to address the problem faced by SMEs to ensure the sector takes a leading role in the development of this country.

“Some of these programs include access to finance through institutions such as SMEDCO, Women Microfinance Bank,” Mhlanga said.

She added: “More so were are supporting workplace development for SMEs in towns and business centre around the currently. Currently, works are ongoing in Gwanda, Gweru, and Chikomba for factory stalls and vendor markets.”