Impact of Microfinance on Small and Medium Enterprises in Zimbabwe: The case for Masvingo town

This research study sought to assess the impact of Microfinance on Small and Medium Enterprises (SMEs) in Zimbabwe. Data was collected from 105 randomly selected SMEs using the questionnaires. Graphs and Charts were used in data presentations and analysis. The findings of the study highlighted that majority SMEs had access to MFI Loans although only a few of them were able to secure the amount they required in full. The research study further revealed that significant number of SMEs beneficiaries of MFI Loans were effectively utilising the loans for business purposes thus enhancing their growth. Most of the SMEs indicated a positive effect of MFI Loans towards promoting their product quality and range, increase in branch network, improved cash flow levels and increase in market share. The study recommend that commercial banks and privately owned MFIs must train SMEs on aspects of financial management before availing loans to them. In addition the government and local authorities (City council) should provide sufficient infrastructural facilities such as permanent work stations, electricity and additional ablution facilities for the SMEs.