Leveraging exhibitions to transition MSMEs into big business

PRINCIPALLY, as a consequence of Covid-19, companies have had to retrench particularly in the tourism and other related sectors, adding to the burgeoning small to medium and micro enterprises (MSMEs).

Because company revenues have been hard hit, retrenched employees and those who survived have had to be innovative in coming up with ways to make ends meet — by starting side hustles to keep an income stream going.

In many cases, those side hustles have turned into viable businesses where the entrepreneur is now looking for marketing platforms and support to take it further.

MSMEs contribute significantly to the Zimbabwean economy. One could argue that if the MSME sector thrives, Zimbabwe’s economy will also benefit.

However, if the sector suffers, the impact on communities is severe. Therefore, the small and medium-sized enterprises (SMEs) sector is going to be the cornerstone for emergence from the current Covid-19 economic stagnation.

In the United Kingdom, for instance, SMEs employ less than 250 people and in China or US, the number can go up to 3 000 depending on the sector.

In Zimbabwe, Zimbabwe Revenue Authority (Zimra) classifies SMEs as businesses that employ between 5-40 people with annual turnover and assets from as low as $50 000 to $2 million.

Actually, SMEs now make up over 70 percent of Zimra database of registered tax payers while contributing only 20 percent in taxes.

The progression of SMEs to big business or corporate level is key in any economy in the world. It is actually the relative measure of how well an economy is performing as SMEs are the seed-bed of business growth, innovation and pillars of employment creation.

The key challenge with Zimbabwean SMEs, however, is that only a few transition into big businesses that can be accounted for in the formal economy. As such, they rarely create wealth that can be passed on to the next generation.

In one of the most recent studies by the Ministry of Women Affairs, Community, Small and Medium Enterprises Development, a sobering statistic was put on the table: that 15 (out of 100) small businesses that make it after five years of operation in Zimbabwe, only two become big businesses.

The rest stay as SMEs and evolve from one specialty to the other till they die with the owner(s) or are taken over by new management.

The Zimbabwe International Trade Fair (ZITF) Company has made a conscious decision to focus on this sector in the forthcoming ZITF, to act as a catalyst for growth and employment opportunities.

Leveraging our trade shows to provide relevant platforms to grow this sector will ultimately assist in growing the economy.

We are convinced that if we find a small entrepreneur and can provide rails that assists the SME to transition into a big business, we will have a larger client in the future. This is a win for the SME and a win for us as the exhibition organiser.
Reinvention, out of necessity SMEs have been compelled to reinvent themselves over the last year to become more digitally present, not just in the way they receive and make payments or manage stock, but also in the way
they interact with other SMEs and stakeholders with skin in the game.

They have had to adjust to the shocks and learn from them to emerge stronger. SMEs, like big business, need a repertoire of capabilities equal to the challenges presented by the environment to survive shocks.

Trade shows are the fastest tracks to recovery for industries and economies.

Trade shows build resilience
Business resilience is like building your muscles in preparation for future arduous and challenging tasks. Trade shows prepare business for the range of challenges posed by the future. They develop business capabilities to cope and thrive across a range of futures.

Businesses acquire anti-fragile techniques — learn from those who have “skin in the game”, for example, the innovators.

Transitioning to the next normal
Safety protocols at business events/exhibitions will continue being amplified during the ZITF. This includes developing and implementing comprehensive and sustainable health and cleanliness programmes to ensure the safety of business guests.

As an ISO Certified company and together with other members of the MICE pyramid, the ZITF team would be well-prepared, trained, and able to implement the standard operating procedures (SOPs) required to ensure a high level of safety at all our events.

The company’s attitude is to continually rethink the eventing experience and never compromise on quality and delegate experience regardless of the event methodology or platform.

Dr Nicholas Ndebele is the chief executive officer of the Zimbabwe International Trade Fair (ZITF)
Company.-The Chronicle