This research study's main objective was to assess the effectiveness of commercial banks in promoting Micro, Small and Medium Enterprises (MSMEs) access to financial services in Zimbabwe. A sample of 50 MSMEs selected using stratified random sampling method was used. Questionnaires with both open-ended and close-ended questions complimented with group discussions with MSMEs owners were used to collect data. The study confirmed a negative and insignificant relationship between commercial banks and rural MSMEs. In addition this research study found out that majority of rural MSMEs do not hold bank accounts with commercial banks and most of those who hold the bank accounts had not accessed any bank loans. The study further suggested that most of the rural MSMEs were not depositing their daily cash sales in commercial banks and are also shunning modes of payments at their disposal from commercial banks like cheques, debit cards, and transfers and in turn use cash for their payments of suppliers and bills. Recommendations made include establishment of more rural commercial bank branches and rural mobile banking services to enhance greater MSMEs reach. In addition commercial banks are recommended to intensify campaigns at ward and district levels about the products and services at MSMEs disposal to enhance improved access. Commercial banks partnering with telebanking service providers and establishment of an MSME stock exchange is also recommended.
Access, Commercial Banks, Financial Services, Rural Micro, Small and Medium Enterprises
