Survival of the Vulnerable: Strategies Employed by Small to Medium Enterprises in Zimbabwe to Survive an Economic Crisis

Small and medium enterprises (SMEs) play a pivotal role in sustainable development through generation of employment, increasing export and industrial production, social uplifting and political stability in developing economies. However, the economic turmoil witnessed in Zimbabwe in the period between 2000 and 2009 gave its hardest punch to the most vulnerable business segment which is the Small to Medium Enterprise (SME). In spite of that, some SMEs managed to survive the economic crisis. This study sought to explore the economic, organisational and psychological survival strategies employed by SMEs in Masvingo to survive the economic pandemonium which plagued the country. A qualitative orientation was adopted in carrying out the study, specifically employing a multiple case research design. Four SMEs were conveniently sampled and their owners and managers interviewed using semi-structured face to face interviews. Results revealed that the mortality of SMEs in the Zimbabwean economic crisis was determined by the extent to which they could be flexible in terms of diversifying their services, products and markets. Maintaining a small, but dedicated and motivated workforce was seen to be critical in ensuring the survival of the SMEs in the economic crisis. Lastly, successful entrepreneurs were found to be optimistic and had volition control.