Small and Medium Enterprises urged to form sector clusters

THIRTY-THREE Small and Medium Enterprises (SMEs) representatives in Bulawayo have undergone training in cluster formation.

Clusters are formed when people in the same line of business form groups where they share knowledge, ideas, and even resources.

Following the training, the Ministry of Women’s Affairs, Community, Small and Medium Enterprises Development urging SMEs to form clusters in various sectors to enhance cooperation and promote sharing of resources, the ministry said.

SMEs continue to play a major role in the Zimbabwean economy as the sector has managed to employ many people.

On Tuesday, the ministry held a workshop in conjunction with the Swedish Development Agency (SDA), DanchurchAid (DCA), and the World Food Programme (WFP) aimed at encouraging SMEs to form clusters.

The workshop was meant to empower entrepreneurs with the knowledge and benefits of cluster formation, encouraging collaboration and growth within the sector.

The training covered topics such as establishing cluster structures, defining constitutions, understanding the benefits of clustering, and the necessary steps for cluster registration.

Zimbabwe already boasts successful examples of clusters, such as the leather cluster and the Mashumba clusters catering to the furniture business community in Bulawayo.

These existing clusters have proven to be instrumental in enhancing cooperation, sharing resources, and fostering innovation among their members.

Speaking during the workshop, Mr Bothwell Mushandiri from the Ministry of Women Affairs Community, Small and Medium Enterprises Development emphasised the importance of clustering in business.

“There are a number of benefits for forming clusters in the MSME sector. By merging resources and expertise, clusters promote knowledge sharing and collaboration among businesses operating within the same industry and increase access to funding and markets while also encouraging innovation as businesses involved in a cluster draw from each other’s strengths,” he said.

Non-Governmental Organisations (NGOs) involved in the initiative expressed their satisfaction with the collaborative efforts between the ministry and its partners.-chronicle

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