Analysing the Effect of Microcredit Accessibilty on Revenue Growth of Agricultural SMEs: A Case of Petauke District, Zambia

Abstract

This study investigates the impact of microcredit accessibility on the performance of agricultural Small and Medium-sized Enterprises (SMEs) in Petauke District, Zambia. Using a mixed-methods approach, the study examines the relationship between microcredit accessibility and revenue growth, challenges faced by agricultural SMEs, and strategies for enhancing the impact of microcredit accessibility. The study reveals that microcredit accessibility has a positive and significant impact on revenue growth among agricultural SMEs, with a correlation coefficient of 0.532. Furthermore, the study finds that microcredit accessibility reduces the challenges faced by agricultural SMEs, particularly in terms of access to finance and markets. The study also identifies strategies for enhancing the impact of microcredit accessibility, including training and capacity-building programs, market linkages, and technological innovation. The findings suggest that these strategies can improve the performance of agricultural SMEs, increase their competitiveness, and contribute to the growth and development of the agricultural sector in Zambia. The study's recommendations prioritize improving microcredit accessibility, providing training and capacity-building programs, and adopting technological innovations. The findings contribute to the understanding of the relationship between microcredit accessibility and SME performance in the agricultural sector, with implications for policymakers, practitioners, and agricultural SMEs in Zambia.