Graduate School of Business

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Browsing Graduate School of Business by Author "Chijikwa, Hastings"

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    Investigation of factors which contribute to the hindrance of small medium enterprises (SMEs) formalisation in Chilenje market of Lusaka district.
    (The University of Zambia, 2024) Chijikwa, Hastings
    The formalisation of Small and Medium Enterprises (SMEs) is key for the development and growth of businesses and the economy. The aim of the study was to investigate factors which hinder SMEs formalisation in Chilenje Market of Lusaka District. Research objectives were to identify factors that promote SMEs to operate in the informal economy; to analyze the competitive advantage that formal SMEs have over informal SMEs; and to find out if the legal environment supports informal SMEs transition to the formal economy. The study employed a parallel convergent mixed methods design for easy merging of quantitative and qualitative. Quantitative data was collected by using the questionnaire while qualitative data was collected through interviews. Quantitative data was analyzed by using the Statistical Package for Social Sciences (SPSS) while qualitative data was analyzed by using themes and contents in which similar items or themes are grouped together from many voluminous words. The study achieved all its objectives and concluded that the level of education for enterprise owners; awareness of government services; awareness of government services and the procedures involved in accessing government support; cost of formalisation for registered businesses; levels of satisfaction for government services; and laws and policies on enterprise formalisation were directly linked to enterprise owner`s decisions to either formalise their businesses or not. The study recommended that the government should consider offering business training for owners of SMEs for them to be able to make well-informed decisions that can improve and lead to business growth. The study recommended that the government should provide incentives to financial institutions that provide affordable credit for SMEs and start-up businesses; coming with up a communication strategy to improve communication of government support and services for SMEs; and proper implementation of laws and policies that that are meant to support SMEs and facilitate graduation of SMEs from informal to the formal economy.