Client Concentration Risk and Structural Vulnerability in Zimbabwe’s Clearing and Forwarding Sector

Abstract

Small and medium-sized enterprises (SMEs) are critical catalysts for economic growth, employment creation, and service provision, particularly in developing economies. In Zimbabwe, SMEs dominate trade-dependent sectors such as clearing and forwarding, logistics, and border services. Despite their importance, SME survival rates remain precariously low, with many firms exhibiting a high degree of revenue concentration on a single client. This study investigates client concentration risk as a structural vulnerability within Zimbabwe’s clearing and forwarding sector. Employing a qualitative, interpretivist methodology, the study employs a critical case study of Heymax Shipping, supplemented by professional sectoral observations and a documentary analysis of existing regulatory frameworks. Findings: The study reveals that client concentration risk is structurally produced by low barriers to entry, market saturation, price-driven competition, and compliance-focused regulation. Informal practices and corruption may facilitate short-term survival; however, they exacerbate long-term institutional fragility. Contributions: Theoretically, the study integrates client concentration literature with trade facilitation and regulatory theory, identifying embeddedness and relational contracting as primary mechanisms of structural vulnerability. Practically, it provides diagnostic tools for SMEs and proposes policy reforms—including client diversification incentives and professionalisation initiatives—to enhance resilience in developing economies.