Impact of resilience on performance of agricultural and retail micro, small and medium enterprises in Midlands Province, Zimbabwe

The impact of resilience on the performance of rural agricultural and retail Micro, Small and Medium Enterprises (MSMEs) has received limited empirical attention globally, particularly in developing country contexts. This study examines the effect of resilience on the performance of rural agricultural and retail MSMEs in four districts of Midlands Province, Zimbabwe, with the aim of informing policies and interventions that enhance enterprise sustainability and growth. Data were collected from 492 rural agricultural and retail MSMEs in May 2023 using a structured survey. A composite resilience index was constructed using principal component analysis (PCA). Multivariate linear regression analysis was employed to examine the effect of resilience and other firm-level and environmental factors on MSME performance. Statistical analyses were conducted using STATA and SPSS. The results indicate that higher levels of resilience have a positive and statistically significant effect on MSME performance (exp(β) = 1.09, p < 0.01). In addition, a conducive operational environment (exp(β) = 1.26, p < 0.05) and access to internal financial resources (exp(β) = 1.21, p < 0.01) significantly enhance MSME performance. The findings suggest that targeted interventions aimed at strengthening MSME resilience capacities, improving the business environment, and expanding access to financial capital are critical for enhancing enterprise performance. Policymakers should foster a stable and predictable macroeconomic environment and support initiatives that improve access to business finance. Furthermore, government and private-sector stakeholders should promote entrepreneurship and resilience-oriented training for MSME owners and managers to strengthen enterprise sustainability and growth. Not applicable.