Definition Of Small Business In Zimbabwe

Small enterprise has a turnover of less than usd 240 000 and the asset base of less than usd 100 000.

Definition of small business in zimbabwe. Although referring to the same class of business the definitions differ in the degree of involvement of these businesses in the generic name. One part refers to them as small businesses others use the concept of small and medium enterprises while some refer to them as micro smalland medium enterprises. The small and medium enterprises policy in zimbabwe. In zimbabwe zimra uses a loose definition that says a small company is one with six to 40 employees annual turn over of 50 000 to 500 000 and assets valued at between 50 000 to 1 million.

The informal sector suffers a definition problem because of the multiplicity of scholarly views. Our definition of small turnover less than 240 000 or assets less than 100 000 and medium enterprises turnover and assets above the thresholds for small enterprises but less than 1 million each ensures we cover the hitherto neglected areas mentioned above. Done to give the informal sector an opportunity to do business and contribute to the economy of the country. Government of zimbabwe goz 2000 89 defines a small enterprise as one that employs not more than 50 people and acting as a registered entity medium enterprises as firms employing between 75 and 100 people.

The sme association of zimbabwe is therefore meant to cover this middle ground. Our mandate is to help start ups small and medium sized businesses to grow into large corporations. We also work with large corporations development agencies partners and other organisations interested in working with smes affiliates.