Have you ever wondered how businesses are classified in Zimbabwe? Whether your business is a micro, small or medium or large enterprise?
Understanding classification is important as this allows you to pick on the economic policies targeted to the business cluster/size you belong. In Zimbabwe SMEs are classified as such according to the 5th Schedule of the SMEs Act 24:12. The schedule provides a formula looking at no. of employees, value of turnover and asset value as the key determinants.
Per the definition and classification of enterprise as an SME is determined using the formula:
A + B + C
Where:
A is the average maximum total number of full-time employees during any calendar year of the enterprise concerned.
B is maximum total annual turnover of the enterprise concerned
C is the maximum gross value of the assets (excluding immovable property) of the enterprise concerned.
The points are assigned using the table below:
figures in USD
The resulting score will define the enterprise using the key below:
