Impact of Internal Savings and Lending Schemes on the Growth of Female-Owned Micro, Small to Medium Enterprises in Rural Zimbabwe

The study focused on the impact of Internal Savings and Lending Schemes (ISALs) on the growth of women-owned Micro, Small and Medium Enterprises (MSMEs) in rural Zimbabwe, using the Umzingwane district as a case study. The study adopted a sequential explanatory research design underpinned by a mixed research method. Data was gathered using questionnaires and interviews. A total of 400 questionnaires were administered to female members of ISAL, while 30 interviews were administered to the committee members of ISAL groups from the Umzingwane district in Zimbabwe. A purposive sampling technique was used. The study revealed that women saved on average US$50 or less per month and their participation in ISALs resulted in the expansion of business, increased customer base, increased the capacity of their businesses to employ more people and improved revenue. Thus, ISALs promote the capacity of rural women to contribute to the industrialisation and economic growth of African countries. The study recommends that members of ISALs with businesses should be linked to the markets for their products and ISALs should be linked to formal banking so that they have access to diversified financial services.