Online 29 2014 Membership Market Study Report

ZIMBISA
BMO MEMBERSHIP MARKET STUDY
1

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CONTENTS
ACRONYMS
LIST OF FIGURES
EXECUTIVE SUMMARY
1. INTRODUCTION
1.1 Background And
Objective Of The Study
2. FINDINGS
2.1 Findings From The Quantitative
and Qualitative Research
ANNEX SECTION
A. The Limitations Of
The Methodology And Sample
B. About Business Membership
Organizations In Zimbabwe
C. Bibliography
05
06
08
17
17
20
20
48
48
53
56

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ACRONYMS
ADMA Advertising Media Association
BAZ Bankers Association of Zimbabwe
BMO Business Membership Organisation
CIFOZ Construction Industry Federation of Zimbabwe
CoMZ Chamber of Mines Zimbabwe
CZI Confederation of Zimbabwe Industries
ESAP Economic Structural Adjustment Programme
GDP Gross Domestic Product
GPA Global Political Agreement (Zimbabwe)
MAIZ Motor Industry Association of Zimbabwe
MAZ Markers Association of Zimbabwe
MTP Mid Term Plan 2010 - 2015
(Government of Zimbabwe)
NGO Non-Governmental Organisation
PPD Public-Private sector Dialogue
SME Small and Medium Enterprise
STERP Short Term Emergency Recovery Program
ZIMASSET Zimbabwe Agenda for
Sustainable Economic Transformation
ZNCC Zimbabwe National Chamber of Commerce

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Emerging membership models
Services are not readily available for a number of BMO services
including several that are important to the private sector:
i) facilitating access to finance,
ii) facilitating new business, trade delegations, promoting
local procurement,
iii) monitoring legislation and regulations affecting industry.
On average, companies surveyed received some form of the
listed services from BMOs 4.6 times per year.
BMO performance on service delivery is generally rated as fair, but
i) facilitating new business trade delegations and promoting
local procurement,
ii) facilitating access to finance, and
iii) conducting research and providing policy analysis are
perceived as being least well performed.
Generally, both members and non-members rate all BMO
services as important, but especially important are
i) access to finance,
ii) facilitating new business, and
iii) monitoring the legislative and regulatory environment.
The perceived value of three BMO services were perceived to
be of much greater value than other services, namely:
i) facilitating new business,
ii) facilitating access to finance, and
iii) PPD platforms, lobbying government for polices and services.
The average perceived fair price for BMO services MO
services were perceived to be of much greater value than
other services, namely:
i) facilitating new business and
Figure 1.1.1
Figure 2.1.1
Figure 2.1.2
Figure 2.1.3
Figure 2.1.4
Figure 2.1.5
Figure 2.1.6
LIST OF FIGURES & TABLES

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ii) facilitating access to finance,
iii) PPD platforms, lobbying government for polices and
services, and
iv) organising conferences, workshops, seminars and
networking opportunities.
The cost to value ratio analysis indicates that five services
have higher ratios than other services: PPD platform, lobbying
government for polices and services; professional development,
training, workshops, etc; facilitating new business; monitoring
legislation and policy information that affect industry; market
and industry specific information.
Whilst most companies who are members feel they get fair value
for money for BMO services, there is much room for improvement.
Respondents found the Customised and International BMO
membership models most attractive.
Companies prefer that BMOs use electronic media and face-to-
face company visits to reach out to them.
Average annual membership fees are low, with fees averaging
about $200-$375 per annum or $17- $31 per month.
Figure 2.1.7
Figure 2.1.8
Figure 2.1.9
Figure 2.1.10
Table 2.1.1

08
EXECUTIVE SUMMARY
OF CURRENT
BMO MEMBERS
WOULD
RECOMMEND
JOINING A
BMO
77%
The results of the study are intended to enable BMOs to
understand who is most likely to buy their products and why,
the gaps in service delivery and the opportunities these offer
to BMOs. The study was done using qualitative (desk research
and 11 interviews with stakeholders) and quantitative methods
(interviews with 417 businesses).
The context in which BMOs in Zimbabwe operate is difficult
because the economic environment is negatively affecting the
viability of member businesses and those that are operating
struggle to pay member fees. This is making it more difficult to
attract members and is increasing competition amongst BMOs
for members. In this environment, there is increasing pressure
for BMOs to adapt to the current needs of business and deliver
services that members value.
Most of those interviewed had never been a BMO member.
Former BMO members tend to have been longer term members
in the past, with a track record of commitment to their BMOs.
The main reasons for discontinuing members were ‘financial
constraints’, ‘no visible benefits’ and ‘no clear accountability in
the BMO’.

Past Members
Current BMO Members
Non-Members
ZIMBISA
The current business sector is seeing the emergence of a new
generation of entrepreneurs whose way of doing business differs
significantly from the older generation. They presently do not
find much to attract them to become members of BMOs. This
presents significant challenges to BMOs to offer services that are
relevant and add value if they are to attract new members.
Some perceptions about BMOs are positive, but there are
also many negative perceptions which are undermining
their efforts to attract new members and retain existing
members. Negative associations are related to corruption and
ineffectiveness. These issues need to be addressed if BMOs
are to attract and retain members.
Many respondents did not have any associations about BMOs at
all and this suggests that there could be opportunities for BMOs
to communicate to potential members who are open to being
persuaded. BMOs need to work hard to offer relevant services
that meet the needs of potential members if they are to attract
new members and advertise their services. Non-members said
that they would be motivated by the following services to join a
BMO: advocacy, research and policy making and supplying
FEMALE
BUSINESS OWNERS
OFTEN SHOW
LONG-TERM
COMMITMENT
TO THEIR
BMOs.
196
103
111
09

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COMMON CHALLENGES FOR BMOs
• Viability of member businesses.
• Accountability and internal governance.
• Meeting the needs of informal sector and female headed businesses.
• Low visibility and public awareness of BMO services.
• Ineffective communication with members and negative perception.
businesses with information. The main reasons that members
were motivated to maintain their membership were situations
where membership is mandatory, attractive services and to
enhance their credibility as a market player.
More than three quarters of members said that they would
recommend and encourage other companies to become BMO
members. However, a quarter of members said that they would
not recommend or encourage others to join because they
thought BMOs are ineffective and offered little or no relevant
services or benefits.
Some BMO services are not readily available to members, including:
1 Facilitating access to finance.
2 Educating as well as engaging the media on
key sector issues.
3 Facilitating new business, trade delegations,
promoting local procurement, and
conducting research and providing policy
analysis. Two of these areas, facilitating
access to finance, facilitating new
business, trade delegations, promoting local
procurement, are also rated as important.
This indicates market gaps in BMO services and offers
opportunities for BMOs to meet the unmet demand for services,
THE MOST
VALUEDSERVICES ARE OFTEN
POORLY
PERFORMED

11
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68%
MEMBERS WHO WANT
A CUSTOMIZED
MEMBERSHIP MODEL
BASED ON SERVICES
PROVIDED
RATHER THAN
COMPANY SIZE.
especially in areas that are rated important (access to finance,
facilitating new business, advocacy and lobbying government
including public-private dialogue (PPD), accessing policy makers,
etc. On the whole BMO performance of services is satisfactory,
although there is much scope for improvement. The results
indicate that those who are more familiar with BMO services
tend to rate the services as more important, and suggest an
opportunity for BMOs to attract new members through making
them more aware of the value of their services.
The findings also show that although members place importance
of some BMO services, such as facilitating finance, access to new
business, monitoring legislation and regulations, these services are
often poorly performed. This suggests opportunities for BMOs to
develop competitive advantage to gain new membership market
share, especially in services that are rated highly important.

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The findings indicate that both members and non-members
value the importance of all BMO services, but these are
especially important:
• access to finance,
• facilitating new business and
• monitoring the legislative and regulatory environment are
especially important.
The value to cost analysis suggests that there is much scope
for customising membership fees and charging a premium for
services rated as highly important and valuable. However, whilst
most companies who are members feel they get fair value for
money for BMO services, there is room to enhance perceptions of
value for money amongst members through providing results and
benefits that are meaningful and tangible to members.
about $200-$375 per annum or $17-$31 per month.
However, the cost to value ratio analysis indicates that there
are substantial opportunity gaps to increase fees for services
with high cost to value ratios. Aware of this, BMOs can explore
customising their membership pricing structure according to
the value that members place on different services and their
willingness to pay for these services. The BMO membership
models that are most attractive are the Customised and
International models indicating that companies want
membership models which are customised to their needs
and which create access to people worldwide. In terms of
communication, companies want BMOs to connect with them
using email, company visits and the Internet.
MAIN REASONS FOR DISCONTINUING MEMBERSHIP
• Financial constraints.
• No visible benefits.
• No clear accountability in the BMO.
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MEMBERS & NON-MEMBERS VALUE THE FOLLOWING
• Access to finance.
• Facilitating new business.
• Monitoring the legislative and regulatory environment.
$200 -
$375
PER ANNUM
AVERAGE ANNUAL
MEMBERSHIP FEES
$17 -
$31
PER MONTH
AVERAGE MONTHLY
MEMBERSHIP FEES

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The BMOs need to revisit their membership models
and customise them to member needs and to allow
members to pay only for the services they want,
rather than paying higher fees for services that they
may not value much.
The need for BMOs to revisit their service offerings
and match these with the current needs of businesses.
This seems to be especially in the areas
of access to finance, facilitating new business,
monitoring legislation that affects industry, enhancing
competitive capacity amongst members, protecting
member interests and effective representation of
member needs to Government.
Harnessing the opportunities for membership offered
by the new generation of entrepreneurs is going to
be challenging, but it is essential that BMOs find ways
to offer relevant value to this emerging sector.
BMOs need to address member accountability
and strengthen internal governance processes and
communication with members.

BMOs need to address the issues affecting negative
perceptions and build on positive associations.
Enhancing governance and member accountability is
key to this, as well as using advertising and peers to
encourage positive images and encourage membership.
There are opportunities for BMOs to attract new
members through making them more aware of
the value of their services by being more visible
around activities that add value to members,
BMOs need to address member accountability,
strengthen governance processes and
communication with members.
SOME STRATEGIES THAT BMOs SHOULD CONSIDER

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The gap in service availability indicates that there
are opportunities for BMOs to extend services
to untapped markets, especially in services rated
high important, e.g. access to finance and facilitating
new business.

Some BMOs focus on larger companies and do not
offer relevant services to smaller companies or the
informal businesses in their sector. This presents a
strategic choice for BMOs: either to develop the market
for larger corporate members and specialise in these
types of members, or diversify and offer a package of
services for smaller and informal sector businesses.
Find ways to make membership compulsory whilst also
ensuring that services are relevant to member needs.
There are opportunities for BMOs to develop
competitive advantage to gain new membership market
share, especially in services that are rated highly
important (access to finance, facilitating new business,
monitoring the legislative and regulatory environment)
and which are not being well performed (conducting
research and providing policy analysis, facilitating new
business, trade delegations, promoting local
procurement, and monitoring legislation and regulations
that affect industry).
BMOs can explore customising their membership
pricing structures according to the value that members
place on different services and their willingness to pay
for these services. The report finds that there is likely to
be significant scope for increasing the price of some
services for which members are prepared to pay
premium prices.
Find ways to make membership compulsory
whilst also ensuring that services are
relevant to member needs.
NON-MEMBERS ARE
MOTIVATED BY:
ADVOCACY,
RESEARCH &
POLICY MAKING
AND SUPPLYING
BUSINESSES WITH
INFORMATION.

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INTRODUCTION
1.1 BACKGROUND AND
OBJECTIVE OF STUDY
1.1.1 The Study
BMOs are best placed to represent the private sector and
articulate their needs. Although the environment in which they
operate has changed considerably over the last 40 years, many
BMOs have not adapted to the changes in the Zimbabwean and
world economies, changes in technology and what this means to
previous ways of organising, the new business culture, changing
demographics, emerging social values, the effects of economic
decline on members priorities and ability to pay for services,
etc. BMOs have lost their competitive edge and run the risk of
extinction if they do not adapt.
This study analyses the market for BMO Membership by
determining the needs of businesses and identifying the profile of
the emerging new generation of entrepreneurs, highlighting their
needs and values and assessing their willingness to meet their
needs through BMO membership. The results of the research
are intended to enable BMOs to understand who is most likely to
buy their products and why, the gaps in service delivery and the
opportunities these offer to BMOs.
The specific objectives of the study are:
• To come up with a detailed profile of the emerging
generation of entrepreneurs.
• Toexplorethecurrentmarkettrendsofmembershiporganizations.
• To explore the needs and values of entrepreneurs.

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• To assess the entrepreneurs willingness/predisposition of
satisfying their values through BMO membership.
• To gain insight into the different aspects of the sector
looking specifically at the following:
a) Who is most likely to buy their products and why?
b) Paths on how BMOs can reach their customers (members).
c) What determines their pricing policy?
d) An analysis of the demographic changes looking at age,
gender, sector of business and company size.
• To determine member’s perception on the value
of membership offered by key Zimbabwean BMOs and
to benchmark it to the measured market need.
• To measure the appropriate pricing mechanism for
membership services by exploring their interest of
members or potential members to join an association on
the basis of different pricing structures.
• To identify gaps in the delivery system.
• Propose recommendations or strategies that will help
towards the achievement of acceptable membership
satisfaction levels.
This study is required to:
1 Provide an analysis of the current market trends for
membership organisations, including an analysis of the
demographic changes, including age, gender, sector of
business, and company size, changes in needs and values
of potential new entrepreneurs.
2 Profile the value for membership offered by the key
Zimbabwean BMOs and benchmark it to the measured
market needs. This should be achieved by asking the
current members of key associations to define how being a
member makes a difference in their lives.
3 Understand value for money and help define the
appropriate pricing mechanisms for membership services,
by exploring the appetite/interest of members and
potential members to join an association on the basis
of different pricing structures. An example of possible
pricing structures to be explored is provided below.

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CUSTOMIZED Members custom build
their membership
packages to suit their
interests and moods.
Members analyze how
they want to use their
membership, and
this leads to higher
engagement.
Associations must
conduct substantial
membership research and
allow time to transition all
current members.
Membership is restricted
to web-based resources
and programming.
Memberships provide
limited access so they cost
less and therefore generate
less revenue.
ELECTRONIC
New streams of revenue
are added without
incurring expenses (eg.
mailing and printing).
Membership is accessible
to people worldwide.
Programming and benefits
may need to be developed;
engagement more difficult.
INTERNATIONAL Membership expands
into new markets
and regions, supports
globalization efforts.
Menu of membership
options based on
interests, professional
designation, budget.
Requires the ability to
manage multiple benefits
for multiple audiences.
MULTI-TIER Members like being able
to choose which options
best suit their needs.
Membership does not
require the payment of
dues.
People perceive there’s
no value because there’s
no cost to join.
OPEN Leads to substantial
membership growth.
SYNOPSIS THE PROS THE CONS
Figure 1.1.1
Source: Sarah L. Sladek , ‘The End of Membership As we Know It’ page 95

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2. FINDINGS
2.1 FINDINGS FROM
THE QUANTITATIVE
AND QUALITATIVE
RESEARCH
The economic and business contexts and implications for BMOs
The findings indicate that 76% of respondents think that the
change in the economy has been strongly negative, or moderately
negative in the past five years. Seventy nine per cent thought
that the changes had a strongly negative or moderately negative
impact on their sector. Sectors which more often reported
negative impacts included tourism, engineering and the informal
sector. Construction respondents, on the other hand, reported
positive impacts in the sector.
Many respondents said that BMOs were not meeting their needs
or supporting them. The most often mentioned needs that are
not being met through BMOs include:
• access to finance
• protection from competition
• effective representation to Government and,
• lack of help to the sector in times of trouble.
Eighty four per cent of respondents said that the approach to
doing business used by the new generation of entrepreneurs
differs from the way in which the older generation do business.
They are seen to be more profit oriented and more concerned
about gaining social status, and their values suggest a ‘maverick’
approach to business. Women respondents particularly mentioned
their profit orientation and social status characteristics.
2.1.1

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This suggests that former BMO members, especially women,
have not been ‘short stay’ members in the past, and have a track
record of commitment to their BMOs. The main reasons for
discontinuing members were ‘financial constraints’ (42%), ‘no
visible benefits’ (40%) and ‘no clear accountability in the BMO’
(25%). Women more often mentioned ‘no visible benefits’ and
‘financial constraints’ compared to male respondents.
Interviews conducted confirmed that the economy is having a
negative impact on membership for most BMOs, although there
were some sectors that were the exception, e.g. agricultural
sector BMO. Others reported drops of 80% in the last 10 years.
These findings have a number of implications for BMOs. It is clear
that the troubled economy is having significant impacts on almost
all sectors and money to pay subscriptions is very limited. This
is making it more difficult for BMOs to attract members, and is
leading to greater competition amongst BMOs. This suggests that
BMO need to revisit their membership models and customise
them to member needs and to allow members to pay only for
the services they want, rather than paying higher fees for services
that they may not value much.
The significant economic changes impacts on sectors mean that
businesses are operating in a very different environment to the
one they used to operate in. In addition, many non-members
discontinued their BMO membership due to little perceived
value. These findings both indicate that there is need for BMOs
to revisit their service offerings and match these with the current
needs of businesses. This seems to be especially in the areas
of access to finance, enhancing competitive capacity amongst
members and protecting members from unfair competitive
practices and effective representation of member needs to
Government. The accountability issue mentioned above also
indicates that BMOs need to strengthen internal governance
processes and communication with members.
Perceptions about BMOs
Perceptions about BMOs generally, and specifically about the
BMOs members belong to, were a mix of positive and negative
2.1.2

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perceptions. Positive associations were mainly around ‘unity/
group representation to further interests’, ‘help/support/
protection’ (particularly amongst female respondents), ‘sharing/
networking/coming together’.
Negative associations were largely related to ‘corruption, theft
and profiting at the expense of members’. Other negative
associations were ‘ineffectiveness’.
Other frequent associations were related to bigger companies,
subscriptions, or no associations.
There were also many mentions of ‘no associations’, which
suggests that there could be a sizable number of businesses that
are open to forming an opinion about BMOs.
The top three criteria most often associated with a successful
BMO are:
• It meets the needs of members,
• It is active, effective and well governed, and
• It represents members’ needs.
Other associations are: -
• Good communication and meeting with members,
• Provides information, and
• Large membership.
Zimbabwean BMOs which were cited as successful by
respondents include:
Confederation Of Zimbabwe Industries (CZI)
Its strengths include:
communication on business matters,
members and media coverage,
lobbies for and represents practical member issues,
training programmes,
leadership,
research,
long established,

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professionally run,
large membership.
Bankers Association of Zimbabwe (BAZ)
visibility,
provides information,
professionally run and well organised,
positively influenced diversification of banking services,
meets member needs,
leadership,
has effective representation from all levels in the sector,
provide networking opportunities.
Marketers Association of Zimbabwe (MAZ)
well organised,
regular training,
leadership,
actively lobbies,
active in legislation regulation,
communicates with members,
have members interests at heart/meet member’s needs,
gets involved in practical issues affecting members.
The common characteristics of the above include:
• Visibility:
Good communication, media coverage.
• Meets member needs:
Gets practically involved, lobbies
• Well run:
Leadership, professional, genuine repetitiveness of sector
• Offers relevant services:
Training,research,information,createsnetworkingopportunities.
Responses relating to perceptions about un-served or under-served
business included:

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• Sole traders, micro businesses
• Manufacturing sector
• Commercial sector
• Informal sector.
These findings suggest that BMOs need to address issues
affecting negative associations with BMOs and build on positive
associations. Addressing governance issues is clearly important
to address in this regard as one of the main negative perceptions
is around corruption and misuse of member funds. There is also
scope to shape potential member associations, and thereby
encourage membership, through advertising.
The findings also point the way in terms of strategic focus: BMOs
that meet member needs, which are visible, which are active,
effective and well governed are more likely to be successful.
There are also opportunities for BMOs to explore new member
markets amongst sole traders and micro-businesses, and the
manufacturing, commercial and informal sectors.
2.1.3 Supply and demand for BMO services
Non-members
Sixty five per cent of non-members said that they had never
been a member of any BMO, mostly in the informal sector,
manufacturing and commerce. Engineering also scored highly.
This could be a true reflection of the engineering sector’s BMO
membership, but the small sample number for this sector may
skew the results. Of the non-members, sole traders and micro
businesses are least likely to have been members.
Of the 107 non-members who had previously been affiliated
with a BMO in the past, most had been previously affiliated
with Zimbabwe National Chamber of Commerce (28%) (mostly
male respondents), Confederation of Zimbabwe Industries (14%)
(mostly female respondents), Motor Industry Association of
Zimbabwe (8%), Construction Industry Federation of Zimbabwe
(5%), Bankers Association of Zimbabwe (2%). This could suggest
that these BMOs are more at risk of losing members.

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Forty seven per cent of non-members who had previously been
affiliated with a BMO said that they had belonged for 2-5 years,
whilst 22% said that they had been affiliated for 5-10 years. This
means that former members were typically longer-term members
rather than new members.
Non-members said that they would be motivated by the
following services to join a BMO: advocacy, research and policy
making and supplying businesses with information. Women
respondents more often mentioned advocacy and opportunities
for networking (e.g. conferences, workshops and seminars) in
this regard. The most often mentioned BMOs that they would
consider joining are: none (24%), Confederation of Zimbabwe
Industries (9%), Zimbabwe National Chamber of Commerce
(6%), don’t know/not sure (6%). This could suggest that BMOs
need to work hard to offer relevant services that meet the needs
of potential members if they are to attract new members and
advertise their services.
Members
Twenty-six per cent of current BMO members said that they
had belonged for 2-5 years, whilst 60% said that they had been
affiliated for 5-10 years. This means that members are also
typically longer-term rather than new members, and could
suggest few new members joining.

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The main reasons that members said had motivated their
membership were: it is mandatory to belong (30%), attractive
services (29%) and to enhance their credibility as a market
player (6%). Almost 77% of members said that they would
recommend and encourage other companies to become BMO
members. Slightly more female respondents (16%) said they
would recommend and encourage others compared to male
respondents (13%). The main reasons for this include: the
BMO offers relevant services, governance (i.e. mandatory in
the sector or the enhanced reputational creditability in being
associated with a BMO), the BMOs performance, effective
representation of sector issues. However, 23% of members said
that they would not recommend or encourage others to join; the
main reasons being: the BMO is ineffective, and the BMO are
offering little or no relevant services or benefits.
The main reasons for members becoming a member of a BMO
were: ‘compulsory by law’ and ‘through a peer.’Eighty three per
cent of BMO members said that there was a 75%-100% chance
that they would renew their membership next year. Micro and
small sized businesses showed lower chances of renewal, possibly
because they are least able to absorb business downturns.
All sole traders interviewed said that they would renew their
membership and this may indicate that they are members of
professional bodies which are mandatory to belong to if they are
to operate.
Generally, BMOs were seen to be serving all members. However
there were some instances where specific groups were identified
as being better served – e.g. big companies, companies run by
BMO leadership, parastatals and Government owned companies,
etc. Also mentioned were the companies run by BMO staff rather
than members. Regarding members who are being served least,
generally, BMOs were seen to be serving all members. However,
some groups were identified as being not served or under-served
– e.g. ordinary members, smaller businesses, those not registered
with BMO, informal sector, new generation businesses, indigenous
businesses as they do not subscribe to BMO.
Some BMO services are not readily available to members, including:
1 Facilitating access to finance,
2 Educating and engaging the media on key sector issues,

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3 Facilitating new business, trade delegations, promoting
local procurement, and
4 Conducting research and providing policy analysis.
Two of these areas, facilitating access to finance, facilitating
new business, trade delegations, promoting local procurement,
are also rated as important. This indicates market gaps in BMO
services and offers opportunities for BMOs to meet the unmet
demand for services, especially in areas that are rated important
(access to finance, facilitating new business).
Services are not readily available for a number of BMO services
including several that are important to the private sector:
i) Facilitating access to finance,
ii) Educating and engaging the media on key sector issues,
iii) Facilitating new business, trade delegations, promoting
local procurement.
On average, companies surveyed received some form of the listed
services from BMOs 4.6 times per year. The services most often
received are
1 Supplying business and policy information, and
2 Facilitating access to finance. Services that were received
least frequently included
i) conducting research and
ii) providing policy analysis and monitoring the
legislative and regulatory process for changes
affecting industry.
On average, companies surveyed received some form of the listed
services from BMOs 4.6 times per year.
Figure 2.1.1
Figure 2.1.2

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100% 80% 60% 40% 20% 0%
Educating and engaging
the media on
key sector issues.
Professional
development
training.
Market and industry
specific information.
Facilitating new business,
trade delegations, promoting
local procurement.
Monitoring legislation and
regulations that affect industry.
Conducting research and
providing policy analysis.
Supplying business and
policy information.
PPD Platforms,
lobbying government
for policies, services, etc.
Organising conferences,
workshops, seminars,
Facilitating
access to
finance.Yes
No
BMO Service Availability

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Annual Frequency BMO Services Are Received
Educating and engaging the media on key sector issues.
Identifying and providing professional development opportunities for members
training, guidance/manuals and case studies.
Market and industry specific information eg. domestic or international pricing,
supply/demand reports, market programming.
Facilitating new business, identifying business leads/tenders, traders/industry
conference, representing industry on
Monitoring legislative and regulatory process for changes that affect industry.
Conducting research and providing policy analysis.
Supplying business and policy information through BMO publications, monthly
electronic updates, congress, magazine
Public-private-dialogue providing platforms for discussion to communicate
problems and needs for industry.
Organising conferences, workshops, seminars, networking opportunities.
Facilitating access to finance.
years

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The findings on membership indicate that there are gaps in the
availability of many services, including ones that businesses rate
as important. This suggests there are opportunities for BMOs to
offer more services, particularly those which are in high demand.
The findings indicate that some BMOs focus on larger companies
and do not offer relevant services to smaller companies or the
informal businesses in their sector. This presents a strategic
choice for BMOs: either to develop the market for larger
corporate members and specialise in these types of members, or
diversify and offer a package of services for smaller and informal
sector businesses.
BMO membership in the past was often mandatory for operation.
This is an effective way to increase membership and may be a
useful strategy to explore. It could be a way to strengthen BMO
membership bases and BMO revenue, enable them to better
represent and coordinate member interests and give BMOs more
credibility with Government and other stakeholders as genuinely
representing their sector. However, it should not be a means of
avoiding delivering relevant and affordable services to members.
The findings suggest that there could be opportunities for
BMOs to develop membership amongst sole traders and micro
businesses and to use existing members, and their goodwill, as
a means to influence peer companies to join. BMOs need to be
seen to focus on meeting member needs impartially and look at
serving smaller businesses and the informal sector.
2.1.4 BMO service performance
The performance of BMOs on service delivery is variable across
the various services. Performance is relatively stronger on
services such as: educating and engaging the media, organising
conferences, workshops and seminars, and professional
development and training. BMOs are performing relatively
weaker in services such as: conducting research and providing
policy analysis, facilitating new business, trade delegations,
promoting local procurement, and monitoring legislation and
regulations that affect industry. Access to finance, a highly rated
service in terms of importance, is not being performed well.

ZIMBISA
32
BMO performance on service delivery is generally rated as fair, but
i) Facilitating new business trade delegations and promoting
local procurement,
ii) Facilitating access to finance and
iii) Conducting research and providing policy analysis are
perceived as being least well performed.
Figure 2.1.3

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33
Educating and engaging the
media on key sector issues.
Professional development
training.
local procurement, etc.
Monitoring legislation
and regulations that
affect industry.
policy information.
PPD Platforms, lobbying
government for policies,
services, etc.
Very Poorly Poorly Average Good Excellent
BMO Performance On Service Delivery

ZIMBISA
34
The findings on performance also showed that larger companies
(medium: 40-75 employees, large: above 76 employees) rated
BMO performance both more strongly positively and more strongly
negatively than small and micro businesses. This trend is difficult to
interpret, but suggests that there is a wide range of performance
quality by BMOs serving these company size segments. Male
respondents tended to rate the performance of BMOs lower than
female respondents.
The findings indicate that there are opportunities for BMOs to
develop competitive advantage to gain new membership market
share, especially in services that are rated highly important (access
to finance, facilitating new business, monitoring the legislative and
regulatory environment) and which are not being well performed
(conducting research and providing policy analysis, facilitating new
business, trade delegations, promoting local procurement, and
monitoring legislation and regulations that affect industry).
Perceptions about importance, value, fair price for BMO services
The findings indicate that both members and non-members value
the importance of all BMO services, but
i) Access to finance,
ii) Facilitating new business and
iii) Monitoring the legislative and regulatory environment are
especially important.
Generally, both members and non-members rate all BMO
services as important, but especially important are
i) Access to finance,
ii) Facilitating new business and
iii) Monitoring the legislative and regulatory environment.
The results also indicate that ‘current BMO member’s almost
always rated services more highly than ‘past members’, ‘potential
members’ or ‘those who are aware but not interested’. ‘Current
members’ were followed by ‘past members’, whilst the average
place scores for ‘potential members’ and ‘those aware but not
interested’ were both noticeably lower. These results indicate
that those who are more familiar with BMO services tend to
rate the services as more important, and suggest an opportunity
2.1.5
Figure 2.1.4

ZIMBISA
35
local procurement, etc.
Monitoring legislation
and regulations
that affect industry.
PPD Platforms, lobbying
government for policies,
services, etc.
Market and industry
policy information.
Professional development
training.
N/A Indifferent Not Important/Beneficial
Average Important/Beneficial Highly Important
Importance Of BMO Services

ZIMBISA
36
for BMOs to attract new members through making them more
aware of the value of their services.
Analysis of the results also indicates that larger companies place
greater importance on BMO services than sole traders and micro
businesses. This is could be a reflection of the greater complexity
in operating a larger business as well as greater focus on export
markets and greater compliance requirements associated with
operating a larger bossiness. These results indicate that some
BMOs should focus efforts on developing members amongst
larger companies. In addition, the analysis also suggests that the
medical, mining and commerce sectors place greater importance
on BMO services. It is not clear why these sectors placed greater
importance on BMO services. The data collection included asking
respondents to estimate the value per month of BMO services.
The findings indicate that companies gave the highest ratings for
the following services: facilitating new business and facilitating
access to finance, followed by PPD platforms and lobbying
government for policies and services and monitoring legislation
and regulations that affect industry.
The perceived value of three BMO services were perceived to be
of much greater value than other services, namely:
i) Facilitating new business and
ii) Facilitating access to finance, and
iii) PPD platforms, lobbying government for polices and services.2
The average estimate of a fair price for a BMO service was $107
per month per service. However, businesses said that they would
pay substantially more for two services: i) facilitating access to
finance ($258) and ii) facilitating new business ($188).
Figure 2.1.6 The average perceived fair price for BMO services
MO services were perceived to be of much greater value than
other services, namely:
i) Facilitating new business and
ii) Facilitating access to finance,
iii) PPD platforms, lobbying government for polices and
services, and
iv) Organising conferences, workshops, seminars and
networking opportunities.3
Figure 2.1.5

37
ZIMBISA
Educating and engaging the media
on key sector issues.
Professional development training.
Market and industry
Facilitating new business, trade
delegations, promoting local
procurement, etc.
Monitoring legislative and
regulations that attract industry.
policy information.
PPD Platforms, lobbying government
Organising conferences, workshops,
seminars, networking opportunities.
Average Perceived Fair Price For Services ($/month)

ZIMBISA
38
The cost to value ratio analysis indicates that five services
have higher ratios than other services: PPD platform, lobbying
government for polices and services; professional development,
training, workshops, etc; facilitating new business; monitoring
legislation and policy information that affect industry; market and
industry specific information.4
This finding suggests that there are substantial opportunity
gaps to increase prices for services with high ratios. BMOs
can explore customising their membership pricing structure
according to the value that members place on different services
and their willingness to pay for these services.
About a third of BMO members said that they believed that
they were getting exceptional or reasonable value for money
for BMO services, about a third said the value for money was
fair, and a further third said that the got little or extremely little
value for money.
Whilst most companies who are members feel they get fair value
for money for BMO services, there is much room for improvement.
Figure 2.1.7
2 Please see the Methodology section for
issues affecting the data quality of this
question area
question area
question area
Figure 2.1.8

39
ZIMBISA
Educating and engaging the media
on key sector issues.
Professional development training.
Market and industry
Facilitating new business, trade
delegations, promoting local
procurement, etc.
Monitoring legislative and
regulations that attract industry.
policy information.
PPD Platforms, lobbying government
Organising conferences, workshops,
seminars, networking opportunities.
Cost To Value Ratio Analysis For BMO Services

ZIMBISA
40
Exceptional value for money
Value for money
Fair
Little value for money
Extremely little value for money
Value For Money For BMO Services

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41
Comments from respondents who said that they were getting exceptional value or value for
money related to satisfaction with benefits:
- We get a lot of business from them.
- Our BMO successfully lobbied Government to grant us duty free import equipment.
- Being affiliated to them enables us to bid for big jobs.
- Do presentations on safety.
- Keep us well informed.
- They are attending to our problems.
- We are getting business ideas.
- Found it easier to identify target markets.
- We get basic services.
- We do not pay much and there are some issues they can address better.
- They are trying under the circumstances.
- There is a lot of room for improvement.
Comments from those who rated value for money as fair include:
Comments from those that rated value for money as little value or extremely little
value included:
- Nothing, they just want to go to hotels and enjoy themselves at the expense of members.
- We don’t see any meaningful benefit.
- Subscriptions are too high.
- They have done nothing tangible.
- They are hardly in touch with members.
- Empty promises.
This finding suggests that there is plenty of scope for BMOs
to improve perceptions of value for money amongst members
through providing results and benefits that are meaningful and
tangible to members. Earlier sections of this report highlight
ways in which this issue could be addressed.
2.1.6 Membership Models and Fees
The responses on the attractiveness of a variety of membership
models indicate that the Customised and International models
are most attractive to members.5

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42
This suggests that companies want BMO membership models
which are customised to their needs and which create access to
people worldwide.
Respondents found the Customised and International BMO
membership models most attractive.
Of the 81 respondents who answered the question about how
much they pay annually for membership fees, 4% paid monthly,
5% paid quarterly, ½ % paid bi-annually, 13% paid annually, 0.2 %
paid different rates for the services.
Of the 81 respondents who answered the question the average
amount paid in annual membership fees were as follows:
about $200-$375 per annum or $17 - $31 per month.
Figure 2.1.9
question area
Table 2.1.1

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43
Membership Models
% 1 & 2 Rankings
Electronic
Open
Multi-tier
International
Customised

ZIMBISA
44
ESTABLISHMENT SIZE AVERAGE ANNUAL
MEMBERSHIP FEE
Individual Entrepreneurs (0 Employees)
Micro Businesses (1 - 5 Employees)
Small Businesses (6 - 30/40 Employees)
Medium Businesses (30/40 - 75 Employees)
Large Businesses (+75 Employees)
$500
$348
$349
$204
$374
about $200-$375 per annum or $17 - $31 per month.
The interviews conducted suggested that some BMOs have
differential membership fee rates and charge monthly, quarterly,
biannually or annually. Rates of fees vary considerably between
large and small companies, e.g. $12000/quarter for a large
company to $1/month for an informal sector member. On
average, most members seem to pay a few hundred dollars per
annum. A few based their fees on the turnover of the member.
Average annual membership fees are low, however, with fees
averaging about $200-$375 per annum or $17 - $31 per month.
This is low compared to the average fair price for services analysis
above, which indicates that members would be prepared to
pay a minimum of about $50 per month ($600 per annum) for
most services and up to $250 per month ($3,000 per annum) for
services they value highly.
It is interesting to note that there does not seem to be much
differentiation in annual membership fees amongst different
sized companies.
Table 2.1.1

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45
2.1.7 Communication With Members
The findings show that companies want to see BMOs using
email, company visits and the Internet to communicate with
them. Female respondents had a higher preference for email
communication than male respondents. The preference for
email and company visits is a trend across all company sizes.
Two of these methods use electronic media, and is an indication
of the increasing use by companies of these methods as means
of communicating and obtaining information. This would be
especially the case amongst the new generation entrepreneur.

ZIMBISA
46
Email
Company Visits
Internet
Print Media
Telephone
TV
Radio
Social Media (Facebook, Twitter, etc.)
SMS
Postal
Preferred Method For BMO Communication

ZIMBISA
47
Figure 2.1.10 Companies prefer that BMOs use electronic media
and face-to-face company visits to reach out to them.
The interviews conducted suggested that whilst BMOs are using
email, websites and the press to communicate with members,
few were making company visits. To make businesses more
aware of BMOs and their services, respondents recommended
that BMOs: advertise and be more visible, make company visits
and educate potential members and the public about what they
do and offer.

48
ANNEX SECTION
A LIMITATIONS OF THE
METHODOLOGY
SAMPLE
The methodology of the study required an in-depth reflection
of the profile of the emerging generation of entrepreneurs
and to ensure the validity of the findings through the use of
triangulation methods.
The methods of data collection required included:
a) Qualitative research
Desk research / literature review
In-depth interviews with stakeholders and BMOs
b) Quantitative research
Face-to-face interviews with businesses selected
through random sampling methods, the RAND Formula.
The sample for the quantitative research suggested for the study was
400 comprising a mix of members (300) and non-members (120).
The assignment was implemented in seven phases namely:
Project kick-off and orientation
Sample design
Questionnaire preparation
Enumerator preparation
Pilot survey
Fieldwork
Data capturing in CSPRO and cleaning. Analysis was done in .sps.

ZIMBISA
49
A presentation to stakeholders on the key findings was done
on 2 September 2014
Preparation and submission of the draft reports 3-12
September 2014.
The sample design for the assignment involved:
Key informants - gathering the names and contact details of
key informants to be surveyed. These included management
staff of 11 BMOs. These informants provided a perspective on
the background and key issues affecting the BMO sector.
Please see the Annex section for details of those interviewed.
Corporates - The sample for corporate clients was agreed with
ZIMBISA prior to the fieldwork to be 420 evenly split between
1 BMO members,
2 Past BMO members who are not currently members
of any BMO,
3 Potential members and
4 Companies that are aware of BMOs but who are not
interested in being members.
MEMBER STATUS TARGET SAMPLE ACTUAL SAMPLE
Members
Potential Members
Past Member, But Not Currently A Member
Aware Of BMOs But Not Interested
TOTAL
105
105
105
105
420
111
103
106
97
417

ZIMBISA
50
It was intended to use the RAND method for sampling, but this
proved difficult as a list of companies to select from was not
available. Therefore companies were randomly selected.
Two levels of stratification were used within the sample, that is:
economic sector and establishment size. Industry stratification
was designed to ensure that all key sectors in the economy
were covered.
ECONOMIC SECTOR STATUS ACTUAL SAMPLE
Manufacturing 93
Commerce (Buying And Selling Of Goods & Services)
Mining And Extractives (eg. Minerals & Timber)
Agriculture
Tourism
Finance
Informal Sector
Construction
Engineering
Medical
TOTAL
269
10
14
6
3
13
1
3
5
417
Size stratification was designed to ensure that data was
captured from individual, micro, small, medium and large
companies. Size was defined following using the definitions used
in the FinScope MSME Survey Zimbabwe 2012 which is based on
the number of employees an establishment has.

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51
The demographic information collected from the study indicated
the following:
The sample included 111 female respondents and 306
male respondents.
ESTABLISHMENT SIZE STATUS ACTUAL SAMPLE
Individual Entrepreneurs (0 Employees) 17
Micro Businesses (1 - 5 Employees) 138
Small Businesses (6/30 - 40 Employees) 216
Medium Businesses (30/40 - 75 Employees) 17
Large Businesses (+75 Employees) 29
TOTAL 417
GENDER OF RESPONDENT ACTUAL SAMPLE
Female 111
Male 307
TOTAL 417
Sixty seven percent of businesses are male owned (generally
100% shareholding), 23% of businesses are female owned
(generally 50% or lower) and very few businesses (3%) are
owned by youth.

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52
OWNERSHIP STRUCTURE % HELD BY OWNERSHIP CATEGORY
Male Owned 67%
Business Operated By Women - But Not Owned 23%
Business Operated By Youth - But Not Owned 3%
Don’t Know 7%
TOTAL 100%
The percentage of female managers in the businesses
surveyed was 33% compared to 67% male.
Female Managers 33%
Male Managers 67%
TOTAL 100%
The percentage of employees in the businesses surveyed
was 27% female and 73% male.
Female Employees 27%
Male Employees 73%
TOTAL 100%

ZIMBISA
53
B ABOUT BUSINESS
MEMBERSHIP
ORGANISATIONS
IN ZIMBABWE
Business membership organisations are membership
organizations engaged in promoting the business interests of
their members.8 BMOs can be divided into two major groups:
business associations and chambers of commerce and/or
industry. Business associations (e.g., industry associations,
small-scale enterprises’ associations, women’s associations, or
employer’s associations) are usually private legal organizations
concentrating on single branches, firm sizes or functions. They
are characterized by a homogeneous membership structure and
usually include a relatively small number of potential members.
Chambers typically combine the broad based business interests
of a certain geographic region.
BMOs can reach out to a large number of firms and represent
and voice the concerns of their members at the policy level,
creating a constituency for change that can lead to sustainable,
bottom-up policy reforms. However, most BMOs have a mixed
membership including smaller and larger enterprises, with at
times diverging interests.
Business Membership Organizations (BMOs) include:
business associations
chambers of commerce
federation of business associations
employers’ clubs
private sector forums.
Members are usually required to pay regular dues, which provide
BMOs with the majority of their funds. One of the primary
purposes of BMOs is to attempt to influence public policy in

ZIMBISA
54
a direction favourable to the group’s members, enhance the
business environment as well as offering members a number of
business related services.
Membership services can be classified into trade and market
development, training, advice and consulting, information and
networking, office facilities and infrastructure services, and
delegated government functions. A BMO’s service portfolio will be
influenced by its capabilities and experiences, the competition and
demand in service markets, the necessary financial and personnel
resources, and the potential short and long-term benefits.
BMOs can be a platform for promoting a better investment
climate in developing countries. In order to be a strong and
reputable and representative of the private sector, vis-à-vis the
public sector, BMOs should have the capacity to advocate the
interests and concerns of their members; be strong organizations
with a proper governance structure; and respond to their
members needs by delivering required services and information.
BMO membership models are typically structured in five broad
model types: customised, electronic, international, multi-tier
and open.
Role of BMOs in promoting a better business environment
in Zimbabwe
There are several BMOs in Zimbabwe that represent the
interests of different economic sectors. Some of the reputable
BMOs include the Confederation of Zimbabwe Industries
(CZI) , Construction Industry Federation of Zimbabwe (CIFOZ),
Advertising Media Association (ADMA), the Chamber of Mines
Zimbabwe (CoMZ) and the Zimbabwe National Chamber of
Commerce (ZNCC).
These BMOs provide an interface between policy makers and the
companies they represent. ZNCC, for instance, aims to be a leader
in business development in the national economy and a channel
of communication between business and the various authorities
in Zimbabwe. CZI exists to foster and encourage, promote, protect
and advance the sustainable growth and development of the
manufacturing sector and business in Zimbabwe.
6 Vitoria, B and Ngarivhume, J., Youth
Unemployment Research Framework, The
NGO Joint Initiative for Urban Zimbabwe,
March 2012
7 www.publicprivatedialogue.org
8 http://definitions.uslegal.com/b/busi-
ness-associations

ZIMBISA
55
The BMO sector in Zimbabwe started in the pre- independence
era with only seven major BMOs. These included Zimbabwe
National Chamber of Commerce (ZNCC), Confederation of
Zimbabwe Industries (CZI), Commercial Farmers Union (CFU)
and the Bankers Association of Zimbabwe (BAZ). Most other
BMOs emerged after independence. Currently Zimbabwe has
approximately 80 BMOs that are in operation.9
9 Source: Sekai Kuvarika of the International
Council of Swedish Industry, 8 September
2014.
CUSTOMIZED Members custom build
their membership
packages to suit their
interests and moods.
Members analyze how
they want to use their
membership, and
this leads to higher
engagement.
Associations must
conduct substantial
membership research and
allow time to transition all
current members.
Membership is restricted
to web-based resources
and programming.
Memberships provide
limited access so they cost
less and therefore generate
less revenue.
ELECTRONIC New streams of revenue
are added without
incurring expenses (eg.
mailing and printing).
Membership is accessible
to people worldwide.
Programming and benefits
may need to be developed;
engagement more difficult.
INTERNATIONAL Membership expands
into new markets
and regions, supports
globalization efforts.
Menu of membership
options based on
interests, professional
designation, budget.
Requires the ability to
manage multiple benefits
for multiple audiences.
MULTI-TIER Members like being able
to choose which options
best suit their needs.
Membership does not
require the payment of
dues.
People perceive there’s
no value because there’s
no cost to join.
OPEN Leads to substantial
membership growth.
SYNOPSIS THE PROS THE CONS
Source: Sarah L. Sladek , ‘The End of Membership As we Know It’ page 95

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56
C BIBLIOGRAPHY
Sladek, L S (2011) The end of membership as we know it :
Building the fortune- flipping Must-have association of the
next century, 6: 93-99
Mikhnev,A (2003) Building the capacity of business
membership organisations, World Bank Group
www.publicprivatedialogue.org/powerpoints /plenary http://
www.ifc.org/sme
Kameyana.S (2001) Models of SME sector development
www.systemdynamics.org/conferences/2001/papers/
Kameyama_1.pdf
http://smallbusiness.chron.com/meaning-business-
organization-41925.html
Study on Knowledge Based Support for SME Sector Development,
JICA, March 2000
http://publications.iadb.org/handle/11319/5938?locale-
attribute=en
1
2
3
4
5
6

ZIMBISA
57

1A Kent Road
Chisipite
Harare
Zimbabwe
P: +263 86 7710 2579
E: info@zimbisa.org
W: www.zimbisa.org (http://www.zimbisa.org)
51 Kelvin Road North
Graniteside
Harare
Zimbabwe
P: +263 4 7795 27/32/35/38/41/44/47
E: probemkt@gmail.com

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