MSMEs urged to formalise business operations

MICRO, small and medium enterprises (MSMEs) have been urged to formalise their businesses to make it easy for them to access key business development support services from different stakeholders, including financial institutions.

Women Affairs, Community, Small and Medium Enterprises Development Minister, Monica Mutsvangwa, said this in a speech read on her behalf by her Permanent Secretary, Dr Mavis Sibanda, at Insiza District Industrial Expo and Business Indaba held in Filabusi last Thursday.

Minister Mutsvangwa said her ministry is working closely with other Government departments to accelerate the formalisation of MSMEs in areas of business registration, taxation and licensing, among others.

She said this will not only enhance MSMEs’ access to key business development services, but also contribute towards the domestic resource mobilisation drive.

“Let me take this opportunity to encourage MSMEs to register their businesses in order to operate legally,” said Min Mutsvangwa.

“Formalising your businesses is important as it offers benefits such as access to key business development support services from stakeholders, access to finance, market expansion opportunities and regulatory compliance, among others.

“I, therefore, urge all MSME associations to take a leading role in encouraging their membership to formalise their business operations.”

Sen Mutsvangwa said MSMEs are playing a pivotal role in the socio-economic development of many economies the world over.
According to the United Nations (UN) Globally, MSMEs account for 90 percent of businesses, employ 60 to 70 percent of the workforce and contribute approximately 50 percent to the gross domestic product (GDP).

According to the 2021 MSME Survey and the 2022 Finscope Survey, MSMEs contribute over 60 percent of GDP and employ 4,8 million people on a full-time basis.

Min Mutsvangwa said under the current decentralisation and devolution trajectory, MSMEs play a pivotal role in contributing to provincial GDPs, employment creation and balanced development as they constitute the majority of enterprises operating throughout the provinces.

She also applauded SMEs from Insiza District saying their products are of good quality.

“I am impressed by the diversity and quality of products on display at this expo. It is evident that Insiza is brimming with entrepreneurial spirit,” she said.

“I urge you, the incredible entrepreneurs present here today, to build on this momentum. Keep raising the bar, not just for Insiza, but to compete nationally and even internationally. The world awaits your brilliance.”

She said regardless of the sector’s contribution to different economies, the sector remains constrained by gaps, particularly in accessing finance, workspace, markets, technology, business know-how, and multiple levies, among others.

Minister Mutsvangwa said cognisant of the obstacles the sector faces, the ministry is implementing various strategies aimed at facilitating sustainable growth and enhancing the role of MSMEs guided by National Development Strategy 1.

Some of the initiatives mentioned by Minister Mutsvangwa include facilitating the participation of MSMEs in local, regional, and international exposition platforms to get access to markets.

This fosters business linkages between SMEs and large corporations, both vertically and horizontally, facilitating access to funding through SMEDCO, Women’s Micro Finance Bank, Women Development Fund, and Community Development Fund and the establishment of Savings and Credit Cooperatives. —chrncile