Strategic financial management framework to ensure performance and growth for small to medium entrprises

Abstract

Zimbabwe’s Small to medium enterprises (SMEs) face worsening performance and growth-related challenges attributable to failure by owner managers to embrace Strategic Financial Management (SFM) practices capable of promoting business growth and performance. SMEs became the main contributor to the gross domestic product following the collapse of the economy due to the government’s agrarian reform of 2000. Using the quantitative design, the study investigated SFM practices by SMEs towards developing a SFM framework for Zimbabwe’s SMEs. The study revealed that SMEs lacked a conceptual framework that ensures growth despite having a clear focus and vision. Drawing from empirical data and critical review of relevant theories, the study developed a strategic financial management framework for SMEs in Zimbabwe. The framework has relevance for SMEs in Zimbabwe and other neighboring countries as they promote SMEs growth and performance.