Abstract – SMEs are dominant in Zimbabwe’s business community. Acknowledging SMEs’ role in the economy, it is indispensable for policy makers to make sure that all relevant support is given to SMEs. One major area of concern is lack of funding for SMEs business ventures. This study sought to unearth supply side, demand side as well as regulatory financing constrains that are negatively impacting on SMEs growth in Zimbabwe’s Midlands Province. The study employed a qualitative research methodology in which questionnaires and interviews were the major data gathering tools. SMEs, SMEs associations, the Ministry of Small and Medium enterprises as well as various financiers participated in the study. Among a plethora of other constraints, excessive loan documentation requirements, collateral security issues, SMEs managerial inefficiencies, SMEs information opacity as well as high financing costs were found to be hindering SMEs financing. The study recommended the need for capacitating SMEs through training in bookkeeping and business management, SMEs adoption of trending innovative financing models such as crowdfunding as well as creation of an enabling environment for the establishment of alternate financing technologies, to mention but a few.
Keywords: Collateral, Financing, Information Opacity, Relationship Lending, SMEs, Transaction Lending
[Cite as: Siavhundu, T., Nyabunze, A., and Chinorwadza, T. (2020). SMEs Financing Constraints in Zimbabwe: The Case of Midlands Province. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 3, Pages 1-7.]