Assessing the factors that inhibits the growth of SMEs in Zambia: a case of restaurants in Lusaka (CBD).
| dc.contributor.author | Joseph, Edith | |
| dc.date.accessioned | 2025-09-16T08:05:23Z | |
| dc.date.available | 2025-09-16T08:05:23Z | |
| dc.date.issued | 2025 | |
| dc.description | Thesis of Masters of Business Administration General. | |
| dc.description.abstract | This study delves into the various factors that inhibit the growth of small and medium-sized enterprises (SMEs), with a specific emphasis on restaurants operating within Lusaka’s Central Business District (CBD). Recognizing the crucial role that SMEs play in Zambia’s economic development particularly in job creation, poverty reduction, and urban transformation—the research seeks to identify and analyze the key obstacles that hinder their growth and sustainability. To achieve a comprehensive understanding of these challenges, the study adopts a mixed-methods research design, integrating both quantitative and qualitative data collection and analysis techniques. This dual approach allows for a more nuanced and multidimensional exploration of the issues facing SMEs in the restaurant sector. Quantitative data were collected through structured surveys administered to a randomly selected sample of 211 restaurant SMEs. This sizable sample ensures that the findings are statistically reliable and reflective of broader trends within the industry. In parallel, qualitative data were obtained through purposive sampling, guided by the saturation principal interviews continued until no new themes emerged. This method was particularly useful in capturing the lived experiences, perspectives, and strategies of SME owners and managers in navigating the complex business environment of Lusaka's CBD. Data analysis was conducted using SPSS software for the quantitative component, allowing for the identification of patterns and correlations between variables. Thematic analysis was employed for the qualitative responses, enabling the extraction of recurring themes and deeper insights into the contextual and experiential dimensions of SME growth challenges. The findings of the study point to financial constraints as the most significant barrier to SME growth. Among the financial issues identified, lack of access to financing, high interest rates, and rigid collateral requirements stood out as major impediments. Notably, the quantitative analysis revealed a strong negative correlation between lack of financing and business growth, with a correlation coefficient of -0.927. This statistically significant result indicates that as access to financing decreases, the potential for business expansion and sustainability diminishes sharply. These findings align with existing literature on SME development in developing economies, where financial exclusion remains a pervasive issue. The consistency of the study’s results with global and regional trends underscores the systemic nature of these financial barriers. In the specific context of Lusaka's restaurant industry, the implications are particularly pressing. Restaurants in the CBD face unique operational challenges, including high overhead costs, competitive market conditions, and fluctuating consumer demand. Without adequate financial support, these businesses struggle to invest in infrastructure, improve service quality, or scale operations factors critical for long-term success. The study concludes by emphasizing the need for targeted policy interventions and financial sector reforms. These should aim to enhance access to affordable credit, reduce interest rates, and relax collateral requirements to better accommodate the needs of SMEs. By addressing these financial constraints, there is significant potential to unlock growth, enhance profitability, and ensure the sustainability of restaurant SMEs in Lusaka’s CBD and beyond. Keywords: Growth, SMEs, Collateral, lack of financing and cost of capital | |
| dc.identifier.uri | https://dspace.unza.zm/handle/123456789/9408 | |
| dc.language.iso | en | |
| dc.publisher | The University of Zambia | |
| dc.title | Assessing the factors that inhibits the growth of SMEs in Zambia: a case of restaurants in Lusaka (CBD). | |
| dc.type | Thesis |