Evaluating the contribution of financial lending institutions through access to finance, in achieving sustainable growth of micro, small and medium enterprises (MSMEs) : a case study of Kasama district, Northern province.
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Date
2024
Authors
Chanda, Benny
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
Access to financial services has long been accepted as an important means of improving income generating opportunities, and overall living conditions among households. A wide range of financial institutions have been involved in providing various financial services to households in Zambia over many decades Small and medium enterprises is an engine for the country’s economic development of any healthy nation. These businesses pray a pivotal role through creation of employment the most and major of a country population and also through contribution to the country Gross National Product. The study was conducted to evaluating the contribution of financial lending institutions through access to finance, in achieving sustainable growth of Micro, Small and Medium Enterprises (MSMEs); a case study of Kasama district, northern province. The study employed a descriptive research design to achieve the objectives. The following were the research objectives; To evaluate the contribution of Financial Lending Institutions through Access to finance, in achieving Sustainable Growth of Micro, Small and Medium Enterprises in Kasama, to investigate how these Financial lending institutions are contributing to the economy of Kasama District through financing Micro, Small and Medium Enterprises, to assess the performance of Micro, Small and Medium Enterprise sector and key support structures relative to sustainable enterprise growth in Kasama District and to investigate the challenges being faced by SMEs as they receive financing from financial lending institution in Kasama District. The study used a questionnaire to collect the required data. The data collected was coded, quantified and analysed quantitatively and qualitatively. Quantitative data was analysed by the use of statistical package for social sciences (SPSS). The study concluded that access to finance, lack of collateral security, lack of managerial skills experience are the key socio-economic factors affecting the growth of businesses in Kasama. The other key factors that were found to affect access to finance by MSMEs are: access to business information, access to infrastructure and government policy and regulations. The study recommended that the government should start offering basic business and financial management skills as this will enable entrepreneurs to make informed investment decisions as well as enhance their entrepreneurial skills that enable them to recognize and exploit the available business opportunities. Business
owners/managers need to formalize their businesses through registration in order to enjoy the opportunities presented by formalized business.
Description
Thesis of Master of Business Administration (MBA).