Authors :
Florance Shumba; Amos Mpofu
Volume/Issue :
Volume 8 - 2023, Issue 10 - October
Google Scholar :
https://tinyurl.com/bdfkzxt8
Scribd :
https://tinyurl.com/3vhfhj3e
DOI :
https://doi.org/10.5281/zenodo.10078228
Abstract :
This study premised on the problem that the
small medium enterprises are lagging behind in listing
and grappling with capital financing woes, undertook a
critical analysis for the instituting of a Secondary Stock
Exchange for small to medium businesses in Zimbabwe.
Mixed methods were used to collect data through:
questionnaires plus in-depth interviews from a sample of
67 participants drawn from Zimbabwe Stock Exchange
stakeholders. These qualitative and quantitative methods
produced descriptive statistics results.
Findings:
The small to medium businesses failed to qualify for
listing on the stock exchange due to the heavy
regulations placed on prospective firms. The high
minimum share equity level set by the ZSE is out of
reach for many small medium businesses coupled with
their distaste for offering part of their shareholding to
the public.
Recommendation:
The fundamentals for establishing a secondary
stock exchange: reducing the minimum listing share
equity level, initiating training on raising capital through
a stock exchange market and government guaranteed
issuance of shares to public and potential investors of the
Alternative Stock Exchange.
Keywords :
Establishment, Secondary Markets, Alternate Stock Exchange, Small Medium Enterprises, Listing, Capital Financing; Share Equity, Shareholding.
This study premised on the problem that the
small medium enterprises are lagging behind in listing
and grappling with capital financing woes, undertook a
critical analysis for the instituting of a Secondary Stock
Exchange for small to medium businesses in Zimbabwe.
Mixed methods were used to collect data through:
questionnaires plus in-depth interviews from a sample of
67 participants drawn from Zimbabwe Stock Exchange
stakeholders. These qualitative and quantitative methods
produced descriptive statistics results.
Findings:
The small to medium businesses failed to qualify for
listing on the stock exchange due to the heavy
regulations placed on prospective firms. The high
minimum share equity level set by the ZSE is out of
reach for many small medium businesses coupled with
their distaste for offering part of their shareholding to
the public.
Recommendation:
The fundamentals for establishing a secondary
stock exchange: reducing the minimum listing share
equity level, initiating training on raising capital through
a stock exchange market and government guaranteed
issuance of shares to public and potential investors of the
Alternative Stock Exchange.
Keywords :
Establishment, Secondary Markets, Alternate Stock Exchange, Small Medium Enterprises, Listing, Capital Financing; Share Equity, Shareholding.
