Investigating the factors influencing the growth of Small and Medium Enterprises in Lusaka: A Case of Kabwata

Abstract

The study sought to establish the factors affecting the growth of small and micro enterprises (SMEs) in Kabwata Lusaka. The study employed a descriptive case study design to achieve the objectives. The target population under study was the 30 SMEs owners in Kabwata market. The study used a structured interview guide to collect the required data. And data was analyzed thematically. The data collected was coded, quantified and analyzed quantitatively and qualitatively. Participants reported access to finance and lack of managerial skills experience as the key socio-economic factors affecting the growth of businesses in Lusaka. The other key factors that were found to affect SMEs are: access to business information, access to corruption, business location and government policy and regulations. The study concluded that access to finance and availability of managerial skills and experience are the key socio-economic factors affecting the growth of businesses in Lusaka district. These two have the potential of leading to improved business performance. The other key factors that were found to affect growth of micro and small enterprises in Lusaka district are: access to business information, government policy and regulations, corruption inflation rate, networking and collaboration.