BULAWAYO researchers have identified lack of access to funding from banks as a major obstacle hindering the growth and development of small to medium-sized enterprises (SMEs) in the city.
Presenting research findings at the Bulawayo Economic Development Conference hosted by the Bulawayo City Council (BCC), Lupane State University researcher Lurriety Ndlovu said SMEs were facing financial challenges due to lack of funding.
“SMEs in Bulawayo face the challenge of finance because they do not have the capital to finance their businesses,” Ndlovu said.
“Most banks and financial institutions are not willing to release funding to SMEs as they view them as stepping stones and high risks.”
National University of Science and Technology researcher Dumile Ncube said many SMEs do not have collateral so that they could access loans.
“Most businesses do not get the funding because when you go to the bank, they require collateral and currently, the collateral they need are things like property and most SMEs do not have such,” Ncube said.
The researchers said bureaucracy, lack of infrastructure as well as strict regulations and lack of succession plans were another major challenges for the SMEs sector.
BCC hosted a two-day economic development conference, a research-led initiative meant to tackle its enduring water problem and entrepreneurship challenges.
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Council is working closely with academic institutions and researchers.
