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VOL. 1, ISSUE 1 (2025)
The Role of Microfinance in Enhancing Innovation and Competitiveness Among SMEs in Zimbabwe
Authors
Abubakar Ibrahim Mairiga
Abstract
Microfinance has become an essential tool for
empowering small and medium enterprises (SMEs) in Zimbabwe, enabling them to
access much-needed capital, improve productivity, and foster innovation.
However, the relationship between microfinance and the competitiveness of SMEs
remains underexplored. This study examines how microfinance institutions (MFIs)
contribute to enhancing innovation and competitiveness among SMEs in Zimbabwe.
Through both qualitative and quantitative analysis, the research explores the
ways in which MFIs provide financial and non-financial support, such as
training, capacity building, and access to networks, which are critical for SME
growth. The study highlights that while microfinance can significantly improve
access to capital for SMEs, its true impact on innovation and competitiveness
is contingent on the integration of tailored financial products and
complementary services that foster entrepreneurial capabilities. The findings
suggest that microfinance plays a pivotal role in overcoming the barriers that
SMEs face in a challenging economic environment, although limitations such as
high-interest rates and inadequate financial products hinder the full potential
of innovation and competitiveness. By addressing these gaps, policymakers and
financial institutions can enhance the effectiveness of microfinance in
supporting SME development, innovation, and competitiveness in Zimbabwe.
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Pages:17-21
How to cite this article:
Abubakar Ibrahim Mairiga "The Role of Microfinance in Enhancing Innovation and Competitiveness Among SMEs in Zimbabwe". World Journal of Commerce, Vol 1, Issue 1, 2025, Pages 17-21
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