An Evaluation of the Factors Enhancing the Growth of Small and Medium Enterprises (Smes) in Zambia: A Case Study of Kabwata, Lusaka.

Abstract

This study explores the determinants of Small and Medium Enterprises (SMEs) growth in Kabwata Township, Zambia, focusing on entrepreneurial skills, access to finance, business competition, and marketing strategies. Rooted in the Balanced Scorecard and Resource-Based Firm theories, the study employs a mixed-methods approach, combining quantitative data analysis using SPSS version 29 and qualitative insights from SMEs in Kabwata. The literature review highlights the significance of these factors in SME success, while also critiquing the limited geographical focus and outdated information in existing studies. The results indicate a weak positive correlation between entrepreneurial skills and SME growth, underscoring the importance of investing in entrepreneurship development programs. Access to finance emerges as a strong positive influencer on SME growth, emphasizing the critical role of financial support. Business competition demonstrates a nuanced impact, with some SMEs thriving in competitive environments. Effective marketing strategies exhibit a positive association with SME growth. Additionally, an improved business environment correlates positively with SME growth. The study recommends tailored interventions, such as strengthening entrepreneurial training programs, facilitating diverse funding sources, providing industry-specific support, promoting digital marketing adoption, and establishing an SME support hub. Continuous monitoring and evaluation are advised for ongoing relevance. Future studies are proposed to explore sector-specific influences, conduct longitudinal analyses, delve into marketing strategy impacts, assess government policy effectiveness, and conduct comparative studies with other regions. These findings contribute to a deeper understanding of SME dynamics in Kabwata and offer actionable recommendations for policymakers and stakeholders to foster sustainable SME growth in the region.