*4.2.6 Distance travelled*

Some entrepreneurs have to travel to their business premises and the times taken vary with distance and mode of transport. Distance may influence time spent

**223**

*The Factors Influencing SMEs Growth in Africa: A Case of SMEs in Zimbabwe*

on business, opening of business and costs of travelling. In such cases operations, professionalism or reliability and profit levels are affected by these factors. There is need to investigate the effect of distance or time taken to work on profitability.

In SMEs the most crucial or important stakeholders are the owners, customers and staff. The owners of the business take important decisions in everyday activity and determine the success or profitability of business [12]. Their vision, expertise, philosophy and other resources influence greatly the success of the venture. How does ownership structure affect profitability levels of SMEs in Zimbabwe?

Information and communications technology (ICT) has developed rapidly and changed how business is done across the globe. There are reports of businesses that have succeeded by use of mobile phones, smartphones, tablets, computers in doing business. In addition to that business is also being done online through internet and other social media platforms [23]. Today's consumer has become more inclined to online searching, internet sales and purchasing of goods and services. Many SMEs are unable to exploit opportunities arising in this form preferring to use the tradi-

The lack of entrepreneurial skills, zeal and capacity hinder business success. Njanike [24] argues that before one starts a business the following important question must be answered: Am I an entrepreneur? If one gets into business by default the probability of failure is high and if self-driven such enterprises will sustain adversaries. Many enterprises on the African continent today are a product joblessness, retrenchment, economic malaise and shrinking job

Many SMEs highlight lack of financial resources as the hindrance from success or high profit levels. Formal financial institutions prefer large enterprises to SMEs sighting high financial costs. Large enterprises have lower risk of default, clear financial statements. SMEs have limitation of finance, low research and development investment and low levels of financial inclusion [11]. Those SMEs with capital or access to financial resources have more chances of survival and better profit

Government regulations have an effect on the performance of SMEs or any other business. The regulations enforced by the government can promote or hinder business growth. Some businesses are required to sell their products through some outlined procedures and their adherence assures them of continuity in business. For example some gold miners are required to sell minerals through the government agencies and are not allowed to export them on their own. In Kenya a study found that a positive relationship existed between profitability and other government

*DOI: http://dx.doi.org/10.5772/intechopen.87192*

tional methods of doing business [11].

*4.2.7 Ownership*

*4.2.8 Use ICT*

*4.2.9 Motivation*

markets.

levels.

*4.2.10 Financial problem*

*4.2.11 Business regulation problem*

requirements in some sectors [25].

on business, opening of business and costs of travelling. In such cases operations, professionalism or reliability and profit levels are affected by these factors. There is need to investigate the effect of distance or time taken to work on profitability.
