Assessing the Factors that affect growth of Smalla and Medium Enterprise (SMEs) in the Manufacturing Sector: Case of MSMEs in Mongu
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Date
2024
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University of Lusaka
Abstract
This study aimed to identify the factors that affect the growth of manufacturing-based small and medium-sized enterprises (SMEs) in the Mongu District of Zambia. The study used a mix of qualitative and quantitative methods, including an illuminating overview approach, interviews, and surveys. The target population was all small-scale and medium-sized manufacturing enterprises, commercial banks, and major lending institutions in Mongu urban. Purposive and random sampling techniques was used to select participants. Data was gathered from banking institution interviews, responses to surveys, and past government initiatives. Data analysis involved both subjective and quantitative methods, including the SPSS. The results indicate that the majority of manufacturing-based SMEs in the Mongu District of Zambia are owned by males (64%), with 45% aged between 30-39 years. Moreover, the majority of respondents held secondary education (40%) and were married (60%). The findings highlight that the respondents were aware of various factors that affect the growth of their businesses, and 88% of them supported developing manufacturing SMEs by obtaining information. The majority of the respondents indicated that the business environment was unstable (80%) and the economic volatility was high (98%). In addition, 78% of the respondents faced challenges when obtaining loans, with lack of collateral (52%) being the main problem. The study also found that most MSMEs in the district required less than K150,000 as their startup capital. Finally, the study identified the managerial skills required for business growth, including managerial skills (52%), marketing skills (13%), technical skills (13%), and other skills (22%). Overall, the study results provide valuable insights that can be used by policymakers and stakeholders to promote the growth and development of manufacturing-based SMEs in the Mongu District of Zambia.