Pathways to Formalization: Exploring Support Systems for Informal Micro-Entrepreneurs in the Metal Manufacturing Sector in Zimbabwe

Globally, Micro, Small, and Medium-sized Enterprises (MSMEs) add significant value to economies and the same can be said for Zimbabwe. Sadly, the majority of the players in the MSMEs are completely informal a situation that has led the Government and other Stakeholders to initiate a series of systems to persuade the informal players to consider formalising their businesses. The study thus sought to: 1) find out the systems in place, 2) assess the effectiveness of these systems in achieving their intended goals, 3) determine the views of the metal fabricators based on their interaction with all stakeholders. The study used a qualitative approach. This was done through the use of one-on-one interviews. The study utilised 27 participants, for primary data collection with entrepreneurs in the informal metal fabrication sector. The study also considered selected interviewees from the Ministry, Banks, NEC and ZIMRA. Each interview lasted for at least 45 minutes. Findings revealed that the government through the Ministry of SMEs had a robust strong network system to have entrepreneurs gain access to information and resources from banks and non-governmental organisations. Findings further revealed the existence of a strong system that involves other government-related departments, local authorities, and quasi-government entities who through collaboration with formal entrepreneurs could extend lucrative contracts and partnerships to encourage formalisation. Findings further revealed a strong supportive ecosystem that involves access to capital, markets, free advice, information, and infrastructure for SMEs as part of the system in place to encourage formalisation. The study concludes that full implementation and adoption of the above systems can be the best remedy to influence entrepreneurs in making decisions to formalise while failure may lead to continued non-formalisation of the business.