Addressing Barriers to entry into international trade by SMEs in Zimbabwe

https://doi.org/10.35912/amor.v4i4.1563
Published: Nov 28, 2023

Abstract:

Purpose: The study sought to establish strategies to address barriers to entry into international trade by SMEs in Harare. It was triggered by the need to increase the participation of Zimbabwean SMEs in foreign markets.

Research methodology: The research study adopted an explanatory approach using a survey strategy and data was collected from 322 registered SMEs in Harare using questionnaires. Data was analysed using SPSS 27 to calculate descriptive and inferential statistics and Chi-square tests, correlation, and regression analyses were used to address the research questions.

Results: Barriers to entry into international trade identified were a lack of managerial expertise and entrepreneurial skills and low advertising levels. The study recommends that SMEs increase the number of skilled personnel and develop SME management. SME management should also increase market knowledge and promote innovation to allow for SMEs to participate meaningfully in international trade.

Limitation: The study was limited to SMEs operating in Harare only. It was quantitative and explanatory.

Contribution: The study makes a significant contribution to the existing body of knowledge by bringing to the fore strategies that could enhance the international participation of SMEs, which are the backbone of economic growth in Zimbabwe.

Keywords:
1. International trade
2. managerial skills
3. entrepreneurial skills
4. Small and Medium Enterprises
Authors:
1 . Margaret Mashizha
University of Zimbabwe, Harare, Zimbabwe
2 . Lillian Gumbo
Midlands State University, Gweru, Zimbabwe
3 . Eusebia Chimwe
University of Zimbabwe, Harare, Zimbabwe
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How to Cite
Mashizha, M., Gumbo, L. ., & Chimwe, E. (2023). Addressing Barriers to entry into international trade by SMEs in Zimbabwe. Annals of Management and Organization Research, 4(4), 309–323. https://doi.org/10.35912/amor.v4i4.1563
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Issue & Section
Vol. 4 No. 4 (2023): May
Articles
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References

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  2. Amegayibor, G. K. (2023). Government Covid-19 Stimulus Package, Smes' Awareness, Accessibility, and Challenges in Cape Coast. International Journal of Accounting and Management Information Systems, 1(1), 67-80.
  3. Atieno, R. (2009). Linkages, access to finance and the performance of small-scale enterprises in Kenya. Research Paper No. 2009/06. UNU World Institute for Development Economics Research (UNU-WIDER).
  4. Aw, B. Y., Roberts, M. J., & Winston, T. (2007). Export market participation, investments in R&D and worker training, and the evolution of firm productivity. World Economy, 30(1), 83-104.
  5. Ayyagari, M., Juarros, P., Martinez Peria, M. S., & Singh, S. (2021). Access to finance and job growth: firm-level evidence across developing countries. Review of finance, 25(5), 1473-1496.
  6. Bala, K., Bello, A., & Kolo, B. A. (2008). An appraisal of Resources and Capabilities of Local Construction Firms in Nigeria. Lagos Nigeria Samiom Computers Biz Services.
  7. Baldwin, J., & Gu, W. (2003). Participation in Export Markets and Productivity Performance in Canadian Manufacturing. Canadian Journal of Economics, 36(3).
  8. Caputo, F., Carrubbo, L., & Sarno, D. (2018). The influence of cognitive dimensions on the consumer-SME relationship: a sustainability-oriented view. Sustainability, 10(9), 3238.
  9. Chadamoyo, P., & Dumbu, E. (2012). Competitive strategy and business environment influencing performance of small and medium enterprises in the manufacturing sector: The case study of manufacturing firms in Mucheke light industry. European Journal of Business and Management, 4(10), 28-35.
  10. Chingwaru, T., & Jakata, O. (2015). Factors restraining small to medium enterprises (SMEs) from engaging in export market: The case of manufacturing SMEs in Harare, Zimbabwe. International Journal of Science and Research, 4(10), 643-647.
  11. Cicea, C., Popa, I., Marinescu, C., & C?t?lina ?tefan, S. (2019). Determinants of SMEs’ performance: evidence from European countries. Economic research-Ekonomska istraživanja, 32(1), 1602-1620.
  12. De Massis, A., Audretsch, D., Uhlaner, L., & Kammerlander, N. (2018). Innovation with Limited Resources: Management Lessons from the G erman M ittelstand (Vol. 35, pp. 125-146): Wiley Online Library.
  13. Dereli, D. D. (2015). Innovation management in global competition and competitive advantage. Procedia-Social and Behavioral Sciences, 195, 1365-1370.
  14. Ekai, E. E. (2010). Challenges to the internationalization of Kenyan small and medium enterprises. University of Nairobi, Kenya.
  15. Ferrando, A., & Mavrakis, E. (2017). Non-bank financing for Euro area companies during the crisis. Access to bank credit and SME financing, 3-28.
  16. Gallo, M. A. (2004). The family business and its social responsibilities. Family Business Review, 17(2), 135-148.
  17. Harris, R., & Li, Q. C. (2005). Review of the literature: the role of international trade and investment in business growth and development. Report to UKTI.
  18. Ifediora, C., & Ibe, B. (2014). Environmental Considerations for Exporting Firms in Shoe and Leather Industry. Nigeria Journal of Economics and Sustainable Development, 5(21), 24-31.
  19. Inmyxai, S., & Takahashi, Y. (2010). The effect of firm resources on business performance of male-and female-headed firms in the case of Lao micro-, small-, and medium-sized enterprises (MSMEs). International Journal of Business and Information, 5(1).
  20. Junaidu, A. S. (2012). Export performance of SMEs in the Nigerian leather industry and the mediating effect of perception of export difficulty. International Journal of Academic Research in Business and Social Sciences, 2(10), 1-12.
  21. Karedza, G., & Govender, K. (2019). Factors Impacting the Export Performance of SMEs: An Exploratory Developing Country Study. International Journal of Economics, Business and Management Studies, 6(1), 165-179.
  22. Kumar, R. (2017). Targeted SME financing and employment effects: What do we know and what can we do differently? : World Bank.
  23. Lighthizer, A. R. E. (2020). Report on the Appellate Body of the World Trade Organization. Office of the United States Trade Representative.
  24. López, M. C. P., Miranda, M. E. G., Argente-Linares, E., & López-Sánchez, L. (2018). The internationalisation of Spanish family firms through business groups: Factors affecting the profitability, and the moderating effect of the family nature of the Spanish business: La internacionalización de las empresas familiares españolas a través de grupos empresariales: factores que afectan a la rentabilidad y el efecto moderador de la naturaleza familiar del negocio. Revista de Contabilidad-Spanish Accounting Review, 21(1), 82-90.
  25. Maseko, N., Manyani, O., Chiriseri, L., Tsekea, S., Mugogo, P. C., Chazuza, T., & Mutengezanwa, M. (2011). An analysis of the impact of targeted government support on SMEs growth and development in Zimbabwe: a survey of Mashonaland Central Province.
  26. Misheva, G. (2021). An SME Strategy for a Sustainable and Digital Europe. Retrieved from https://digital-skills-jobs.europa.eu/en/actions/european-initiatives/sme-strategy-sustainable-and-digital-europe
  27. Munyawarara, N., & Govender, K. K. (2020). Clustering the agricultural SME sector in Eastern Highlands, Zimbabwe. International Journal of Financial, Accounting, and Management, 1(4), 247-255.
  28. Novanda, R. R. (2023). Promotion Effectiveness of Small Scale Enterprises (SMEs) in Indonesian Unicorn Marketplace. International Journal of Accounting and Management Information Systems, 1(1), 33-44.
  29. OECD. (2008). Enhancing the Role of SMEs in Global Value Chains. Retrieved from https://www.oecd.org/publications/enhancing-the-role-of-smes-in-global-value-chains-9789264051034-en.htm
  30. Oricchio, G., Crovetto, A., Lugaresi, S., & Fontana, S. (2016). SME funding: the role of shadow banking and alternative funding options: Springer.
  31. Pietrasie?ski, P. (2011). The evolutionary character of supporting the internationalisation processes: recommended system solutions. Polish Journal of Management Studies, 4, 193-199.
  32. RBZ. (2019). Annual Report. Retrieved from https://www.rbz.co.zw/documents/ar/RBZ-ANNUAL-REPORT-2019.pdf
  33. Sibanda, K., Hove-Sibanda, P., & Shava, H. (2018). The impact of SME access to finance and performance on exporting behaviour at firm level: A case of furniture manufacturing SMEs in Zimbabwe. Acta Commercii, 18(1), 1-13.
  34. Smith, A. (1937). The wealth of nations [1776] (Vol. 11937): na.
  35. Tapang, F., & Mbarika, I. (2023). The effect of electricity reliability on the sustainability of SMEs in Fako Division of Cameroon. Annals of Human Resource Management Research, 3(1), 17-39.
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  37. Yoganandan, G., Jaganathan, A., Saravanan, R., & SenthilKumar, V. (2013). Factors affecting the export performance of textile industry in developing countries–A review of literature. International Journal of Commerce, Business and Management, 2(4), 173-176.
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