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Analysis of Micro, Small and Medium Enterprises characteristics and performance across Southern Africa: a cross-country comparative study

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  • Duncan Chandabemba Ngwenya

    (Faculty of Economics)

Abstract

This study examines Micro, Small, and Medium Enterprise (MSME) performance across Zimbabwe, South Africa, and Botswana using survey data from 1,161 businesses. The analysis focuses on owner income growth, employee salary structures, employment patterns, and access to financial assistance. The findings reveal substantial cross-country heterogeneity that challenges conventional assumptions about MSME financing. Zimbabwean MSME owners achieve the highest income growth (47.0 percent) despite having the smallest loan capacity (50,000 USD maximum), while Botswanan owners exhibit modest growth (8.0 percent) despite the largest loan capacity (1.11 million USD maximum). Employee salary growth is remarkably consistent across countries (29.5-32.5 percent), suggesting that government financial support programs benefit workers regardless of owner outcomes. Agriculture demonstrates the highest sectoral owner income growth (52.3 percent), and no statistically significant gender differences are found.

Suggested Citation

  • Duncan Chandabemba Ngwenya, 2026. "Analysis of Micro, Small and Medium Enterprises characteristics and performance across Southern Africa: a cross-country comparative study," Economics Working Papers 2026-05, University of South Bohemia in Ceske Budejovice, Faculty of Economics, revised 26 May 2026.
    • Handle: RePEc:boh:wpaper:05_2026
    DOI: 10.32725/ewp.2026.005
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    References listed on IDEAS

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    1. Ambler, Kate & de Brauw, Alan & Herskowitz, Sylvan & Pulido, Cristhian, 2023. "Viewpoint: Finance needs of the agricultural midstream," Food Policy, Elsevier, vol. 121(C).
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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