ABSTRACT:- Small and Medium Enterprises (SMEs) are central to driving the socio-economic development of countries and promoting entrepreneurship across modern-day nation-states. The realities of their impact manifest in the capacity of enterprises’inherent capacity to address key economic fundamentals such as poverty and empowerment among the population. Consequently, stakeholders, including the governments, have come out globally in full support of SMEs as key to poverty alleviation, income generation, broad-based empowerment of the people, employment creation and integrated strategy that they leverage SMEs aimed at overall socio-economic development through its contribution to Gross Domestic Product (GDP). The entrepreneurial prowess of any country’s population especially of the SMEs is dependent on a plethora of variables that determine their success. As shall be examined and discussed, the key determinantto the success of small and medium enterprises is the availability of financial resources from financial institutions. Thus, the availability of resources is linked to access to credit schemes. Access to capital is fundamentally interconnected to other important considerations made by financial institutions such as collateral security, which, in this case, arguably imposes restrictions on access to credit for the financing of SMEs. A review of the literature technique on Zimbabwe showed that small and medium enterprises. Are experiencing stunted growth due to constraints the SMEs face in the economy, particularly access to capital which is not readily available contrary to public statements of facilities being availed to the SME sector. Essentially, there has been a regression in investments by the SME sector due to a lack of availability and access to capital. The conclusion is that government institutions have the capacity to clearly influence the rate of entrepreneurship and transform SMEs through public policies that can basically determine the entrepreneurial dynamics of Zimbabwe. The introduction of specific policies that promote SME entrepreneurship as well as creating general a financial institutional structure, conducive to SME entrepreneurship (Sobel et al., 2007), is important.

Keywords:- Small and Medium-Size Enterprises; Collateral Security; Access to Financing; Financial Institutions and