Author(s): Matsongoni H, Mutambara E
The study sought to establish the challenges faced by the informal manufacturing small to medium enterprises (SMEs) in Zimbabwe’s five (5) major cities of Harare, Bulawayo, Gweru, Masvingo and Mutare using primary data. The study objective was primarily to investigate the challenges faced by the informal manufacturing SMEs in Zimbabwe. The survey method was used to collect data from a sample of 383 respondents. The study was limited to the informal manufacturing SMEs in six (6) categories which include food, bakery and confectionary processing, toiletry, textile and garment, leather and rubber production, engineering and metal fabrication and timber and furniture making. Research findings revealed that the informal manufacturing SMEs face limited access to finance, lack of infrastructure and collateral security, limited research, development and marketing skills, poor business structures, environment and location, lack of entrepreneurial and management skills and strict legal and regulatory framework. The study also revealed that poorly defined legal and regulatory framework negatively impact the informal SMEs economic growth and development. The study recommended that the government of Zimbabwe introduce legal and regulatory reforms to ensure that informal manufacturing SMEs can easily formalize their economic activities.