Financial Inclusion, the Route to Enterprise Success: Perceptions of the Manufacturing MSEs Owners and the Challenges of the Banking Institutions in Masvingo Urban

摘要

There are many entrepreneurs in all corners of Zimbabwe who are either running a manufacturing enterprise or contemplating to open one, but there are plenty stories telling about the closing of these enterprises a short time after opening their doors. Financial institutions play a pivotal role in the successful running of the enterprises. However, financial exclusion is rampant in the manufacturing MSEs. Financial exclusion of the manufacturing MSEs is a cause for concern and warrants an in depth investigation in order to enhance banking of the unbanked sector of the economy. This study sought to explore causes of financial exclusion of the manufacturing MSEs and the views of the banking institutions on dealing with the manufacturing MSEs as far as banking them is concerned. The study employed a descriptive survey design and was largely qualitative. An open ended questionnaire and semi-structured interviews were used to gather data. A sample of 10 manufacturing MSEs was extracted using purposive sampling technique. The study established that financial inclusion of the manufacturing MSEs is hampered by a number of factors such as exorbitant banks charges, low saving interest rate, high transactional demand for money by the manufacturing MSEs owners and lack of information on services provided by banks. The study therefore, recommended that the central monetary authority should play a leading role in crafting and formulating financial inclusion frameworks that take recognition of the small manufacturing MSEs.