Determinants of Small to Medium Enterprises' Success or Failure: An Ex-post Appraisal of Start up Business by Young Entrepreneurs in Zimbabwe

Abstract

Small to medium enterprises of recent are proving to be the answer for providing the youth with employment as well as to improve the wellbeing of the rural and urban populace the world over.  In Zimbabwe of recent, there has been an exponential growth rate in the number of informal businesses, particularly Small to medium Enterprises (SMEs) but little has been understood pertaining to the reasons behind the very few that survived and succeeded. This research explored factors that determine Small to Medium Enterprises success or failure through a case study of Small to Medium Enterprises funded by Non Governmental Organisations (NGOs) in Zimbabwe. The data for the research was quantitatively and qualitatively analysed. The findings showed that mentorship and close monitoring and evaluation were the key driving success factors. This research is to be invaluable to most African governments in coming up with apposite strategies which can avert the failures of embryonic Small to Medium Enterprises. The study therefore recommended that funding of SMEs be followed by strong mentoring, monitoring and evaluation.