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Small and medium-sized enterprises (SMEs) function in unstable macroeconomic contexts, especially in emerging markets characterised by significant economic volatility. SMEs are crucial for job creation and poverty alleviation; however, they encounter various challenges that impede their growth. Small and medium-sized enterprises in the Mashonaland West Province of Zimbabwe face limitations due to political and economic instability. This research examines operational challenges through a qualitative methodology. Data were gathered from 21 purposefully selected SME owner-managers, each possessing a minimum of five years of managerial experience, across five districts. Inductive thematic analysis, facilitated by NVivo software, was employed to examine open-ended interview responses. Identified key obstacles include cash shortages, inadequate working capital, elevated inflation, foreign currency limitations, increasing costs, and inconsistent government policies. Recommendations for policy include the revision of monetary policy, stabilisation of the local currency, adjustment of tax structures, and enhancement of price control mechanisms. Managers of small and medium enterprises are advised to enhance cash flow and inventory management practices. Future research should undertake comparative studies among developing countries.

Zimbabwe’s Small to medium enterprises (SMEs) face worsening performance and growth-related challenges attributable to failure by owner managers to embrace Strategic Financial Management (SFM) practices capable of promoting business growth and performance. SMEs became the main contributor to the gross domestic product following the collapse of the economy due to the government’s agrarian reform of 2000. Using the quantitative design, the study investigated SFM practices by SMEs towards developing a SFM framework for Zimbabwe’s SMEs. The study revealed that SMEs lacked a conceptual framework that ensures growth despite having a clear focus and vision. Drawing from empirical data and critical review of relevant theories, the study developed a strategic financial management framework for SMEs in Zimbabwe. The framework has relevance for SMEs in Zimbabwe and other neighboring countries as they promote SMEs growth and performance.