Impact of Trading Strategies on the Financial Performance of Exporting Businesses. A Case of Small to Medium Enterprises in Cross-Border Trading in Midlands Province, Zimbabwe

The study focused on the impact of trading strategies on the profitability of Small to medium enterprises in the cross-border trading. The main theories guiding the research study are the classical theories of international trade and the “New Trade Theories”. Also, the conceptual framework showed the relationship between the independent variable “trading strategies” and the dependent variable “profitability of SMEs in cross-border trading”. The study outlined a number of trading strategies adopted by the Small to medium enterprises in the cross-border trading. Also, the study revealed a number of challenges faced by Small to medium enterprises in the cross-border trading in conducting international businesses in the multipolar world. Also, a number of trading restrictions that hinder effective business operations has been revealed. Mitigatory measures to the challenges were outlined. Further, the study revealed the role of the regional boards such as SADC and COMESA in promoting regional trade. The study revealed that, the regional boards have developed lucrative blue prints but their benefit to the intended beneficiaries is not experienced. Data for this study was collected through face-to-face interviews and online questionnaires. The data was analyzed by both SPSS and STATA. The results of the study shows that Small to medium enterprises in the cross-border trading in Zimbabwe experience a number of challenges ranging from social, political and economic. Further, the study revealed that there is a positive significance between the trading strategies and the profitability of Small to medium enterprises in the cross-border traders. A number of recommendation as well as areas for future studies were outlined at the end of the study.