• Login
    View Item 
    •   UNZA Repository Home
    • Theses and Dissertations
    • Graduate School of Business
    • View Item
    •   UNZA Repository Home
    • Theses and Dissertations
    • Graduate School of Business
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Addressing challenges in accessing finance by small and medium enterprises (SMES) in Zambia: a pragmatic approach.

    Thumbnail
    View/Open
    Main document (1.339Mb)
    Date
    2022
    Author
    Bwembya, Jemana
    Type
    Thesis
    Language
    en
    Metadata
    Show full item record

    Abstract
    The objective of the study on ‘Addressing Challenges in Accessing Finance by Small and Medium Enterprises (SMEs) in Kitwe District of Zambia, was to examine the constraints experienced by SME owners in their quest to access financing from financial institutions, to fund business initiatives such as startup endeavors, business operations, and business expansion. The study employed a mixed method research design. The sample for the quantitative approach for the study comprised 60 SMEs and 6 Banks while 4 institutions dealing with SMEs were included as key informants for the qualitative approach. Questionnaires were used to collect data which was subsequently analyzed using Descriptive analysis and chi square test of independence in IBM SPSS Statistics version 28. For the qualitative approach, interviews were for data collection while content analysis was used for data analysis. The findings revealed that access to finance has a significant relationship with SME capabilities of procuring new technology and improving performance for them to survive and attain sustainability and growth, hence the need to resolve the long-standing SME financing challenges like high interest rates, short term loan product offerings, and rigid requirements of collateral and audited financial statements. On the other hand, the study revealed that SME survival was not only dependent on accessibility to finance but also proper SME management, which affects operations and profitability and subsequently loan repayment capabilities. The findings also revealed that banks continued to prefer immovable assets as collateral when lending to SMEs. The study therefore recommends taking measures to resolve the challenges in SME financing through formulation of schemes to lend to groups of SMEs at relatively low rates while the group members of SMEs share default risks, implementation of Credit Guarantee Schemes, formulation of collateral registers with guidelines on valuation and disposal of securities, as well as provision of incentives to banks that lend and effectively monitor the performance of SMEs to ensure success. The implication of this study is that Government and nongovernmental organizations could make use of the research findings to reflect on the challenges, develop and implement effective intervention policies and laws in accordance with international best practices, aimed at spurring the SME sector for sustainable and inclusive growth. Key Words: Small and Medium Enterprises (SMEs), SME Financing Challenges, SME Growth
    URI
    http://dspace.unza.zm/handle/123456789/7880
    Publisher
    The University of Zambia
    Subject
    Financial institutions and services.
    Small and Medium Enterprise (SME)-- Financing.
    Description
    Masters thesis from graduate school of business
    Collections
    • Graduate School of Business [87]

    DSpace software copyright © 2002-2016  DuraSpace
    UNZA homepage | UNZA Library | Contact Us | Send Feedback
    Theme by 
    Atmire NV
     

     

    Browse

    All of UNZA RepositoryCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    LoginRegister

    Statistics

    View Usage Statistics

    DSpace software copyright © 2002-2016  DuraSpace
    UNZA homepage | UNZA Library | Contact Us | Send Feedback
    Theme by 
    Atmire NV