*4.2.14 Licenced*

The licenced businesses are able to access orders or jobs from large corporations or government departments as it is a requirement. The licenced SMEs are likely to enjoy business, benefits and loans that the unlicensed entities are not able to access. They are also likely to be making more profits with clear records and systems in place. In many cases depending on the sector they are expected to adhere to certain rules monitored by a regulator [19].

### *4.2.15 Bank account*

A firm with a bank account is more likely to be having a licence and to some extent operating with clear records. Having an account with a formal financial institution makes a firm have access to loans and other financial services. Customers are also able to pay for goods or services using debit cards, credit cards and other electronic transfers rather than paying cash. More business may be experienced with more convenient payment methods on board.

## *4.2.16 Business records*

A business operated with proper records has a higher chance of survival as determination of profitability is easy. Those that operate without records are not able to assess the extent of profits or losses obtained. With clear records a business is able to attract outside funding and access loans. It is also possible for projections of cashflows, profits and business demand. Analysis of events, assessment of business activities and planning is easier with records [27]. How can one ascertain profits if no proper records are in place?

### *4.2.17 Business advisory*

It is difficult to operate without independent view of others or experts in the business field. In more developed countries business advisory is taken seriously rather than depend on one's intellect and belief in business. The skills that a small business owner or other employees have are complemented by consulting business advisors on some important issues to maximise profits [25].

**225**

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

Requisite skills or expertise in business is a necessity and there is need to have them. One may have worked for a company in the same line of business, trained or attended college for the skill(s). Because small businesses may not have the capacity to pay a qualified individual the owner, of the business has to have an appreciation or knowledge on it [25]. This is the only way outstanding profits can be obtained.

Depending on the line of business or sector red tape may hinder an establishment or growth of business. In Africa there are corrupt tendencies on licencing or permission to operate or in winning tenders. These are hindrances that may cause SMEs not to succeed and enjoy high profit levels [10]. To what extent has corruption

Every legitimate (licenced) business is expected to pay tax to the government. Many informal businesses evade tax and continue reporting high profits [13]. On the other hand paying tax may have indirect benefits as the money paid to the government is used for public goods. Increasing corporation tax has an effect on

Many studies have found varying results on effect of age on SMEs profitability. The young may not be able to perform as expected in business unless they are well trained. Those with experience are likely to produce better results as they may have worked elsewhere or have been operating for some time as one learns from mistakes. However the effects on profitability of SMEs in Zimbabwe remain to be

Women and men operate businesses in the same sector and profitability of their

businesses varies. Does gender have an effect on SMEs business profitability in

There are cases were marital status determines success and profitability of business. The one married has an advantage of sharing ideas for business prosperity with his/her spouse. In some cases married women are limited by their husband's approval and not able to make progressive business decisions [13]. To what extent has marital status influenced success, growth and profitability of business?

Education level is a basic requirement of business and the higher the level the better results are expected in business. Depending on the business complexity or market dynamics one is not able to handle some pressures with lower levels of

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

affected business profitability in Zimbabwe?

business profits as costs are increased.

*4.2.18 Expertise*

*4.2.19 Corruption*

*4.2.20 Tax*

*4.2.21 Age*

investigated.

*4.2.22 Gender*

Zimbabwe?

*4.2.23 Marital status*

*4.2.24 Education level*
