Abstract
This research sought to unearth the role of financing in the sudden downturn in the operational
cycle of Cool Ice Private Limited and its overall effect on SMEs’ viability in the manufacturing
sector of Jaggers, Msasa, Harare Industrial Area. Literature was reviewed on the views of
different writers on SME financing and linked to the Case study. The literature cited high
borrowing costs, lack of collateral and high risk profile as the major constraints on SMEs
financing. Various efforts by different stakeholders to address the problem of SME financing
were drawn from different authors. Research was conducted at Cool Ice and other randomly
selected firms in the Case Study area through sampling, making use of questionnaires, interviews
and analysis of various Cool Ice Documents. Research findings were described, tabulated and
presented in a pie chart, bar graph or line graph for trend analysis. The research findings linkage
with literature was conducted. The major observation noted was the extremely low investment
level, and a series of related problems, which were attributed to lack of financing by the majority
of the firms. The research noted that SMEs are making use of personal savings, borrowings from
relatives and friends as well as internally generated funds to finance their projects which proved
to be highly inadequate as noted from the problems encountered. Conclusions were drawn from
these research findings, recommendations were made and suggestions for further areas of study
were given.
