Financing Constraint on SMEs’ Success in the Manufacturing Sector (Case of Cool Ice (Pvt) Limited))

Abstract

This research sought to unearth the role of financing in the sudden downturn in the operational

cycle of Cool Ice Private Limited and its overall effect on SMEs’ viability in the manufacturing

sector of Jaggers, Msasa, Harare Industrial Area. Literature was reviewed on the views of

different writers on SME financing and linked to the Case study. The literature cited high

borrowing costs, lack of collateral and high risk profile as the major constraints on SMEs

financing. Various efforts by different stakeholders to address the problem of SME financing

were drawn from different authors. Research was conducted at Cool Ice and other randomly

selected firms in the Case Study area through sampling, making use of questionnaires, interviews

and analysis of various Cool Ice Documents. Research findings were described, tabulated and

presented in a pie chart, bar graph or line graph for trend analysis. The research findings linkage

with literature was conducted. The major observation noted was the extremely low investment

level, and a series of related problems, which were attributed to lack of financing by the majority

of the firms. The research noted that SMEs are making use of personal savings, borrowings from

relatives and friends as well as internally generated funds to finance their projects which proved

to be highly inadequate as noted from the problems encountered. Conclusions were drawn from

these research findings, recommendations were made and suggestions for further areas of study

were given.

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APA

HWINGWIRI, A (2021). Financing Constraint on SMEs’ Success in the Manufacturing Sector (Case of Cool Ice (Pvt) Limited)). Afribary. Retrieved from https://track.afribary.com/works/financing-constraint-on-smes-success-in-the-manufacturing-sector-case-of-cool-ice-pvt-limited

MLA 8th

HWINGWIRI, ADMORE "Financing Constraint on SMEs’ Success in the Manufacturing Sector (Case of Cool Ice (Pvt) Limited))" Afribary. Afribary, 04 May. 2021, https://track.afribary.com/works/financing-constraint-on-smes-success-in-the-manufacturing-sector-case-of-cool-ice-pvt-limited. Accessed 24 Nov. 2024.

MLA7

HWINGWIRI, ADMORE . "Financing Constraint on SMEs’ Success in the Manufacturing Sector (Case of Cool Ice (Pvt) Limited))". Afribary, Afribary, 04 May. 2021. Web. 24 Nov. 2024. < https://track.afribary.com/works/financing-constraint-on-smes-success-in-the-manufacturing-sector-case-of-cool-ice-pvt-limited >.

Chicago

HWINGWIRI, ADMORE . "Financing Constraint on SMEs’ Success in the Manufacturing Sector (Case of Cool Ice (Pvt) Limited))" Afribary (2021). Accessed November 24, 2024. https://track.afribary.com/works/financing-constraint-on-smes-success-in-the-manufacturing-sector-case-of-cool-ice-pvt-limited