Management constraints of side-supported small scale enterprises in Lusaka

Abstract

This study provides, first, a critical analysis of Small Scale Enterprises promotion in Zambia.Secondly, the study provides a survey of the administrative and institutional constraints of Lusaka based small enterprises supported by the Small Industries Development Organisation.The study was conducted in 39 enterprises in Lusaka from November, 1985 to March, 1986. The methodological framework of the study includes literature review, use of offical documents and interviews.The study reveals that Small Scale Enterprise Promotion after 1983 was introduced for progmatic reasons. The evaluation shows that the institutional framework though existing still has to be grounded in practice.Furthermore, the study shows that the main constraints faced by SIDO supported small enterprises are in the regions of management, procurement, finance, factory space and government bureaucracy.Lack of trained personnel is a national problem in Zambia. Trained personnel migrate to the better paid and socially better assured positions in the parastatal concerns. Procurement of materials and spare parts also relects the dependency on imports that the country has continued to experience. Finance is accounted for by the lack of savings and access to credit. Lack of factory space is accounted for by the zoning regulaticns- while the lack of appropriate government intervention is explained by the lack of proper articulation of policy.The study contends that, the universal merits of small enterprises in providing the basic supportive structure to industrial growth and development have in theory been recognised by the government which has since established an institutional framework. This regognition, however, will remain without social value unless specific intervention is done by the government.Four intervention mechanisms relating to the SIDO programme the institutionalenvironment, finance, entrepreneur development and input provision have been suggested as being vital.