An analysis of factors constraining the growth of micro enterpreses in Lusaka

From the literature researched in this study it was clear that micro enterprises have the potential to make a strong contribution to the economy of African countries like Zambia and others. In spite of this, it is concerning to note that they often do not progress to the next level of competence. An alarmingly high number of micro enterprises fail shortly after start - up while many others remain stagnated in terms of potential growth. This study was primarily aimed at establishing the factors that constrain micro enterprise growth in Lusaka. To do this, the study used simple random sampling to collect data from 66 micro enterprise owners and 5 key informants (2 micro enterprise sector experts and 3 council officials) using interviews and questionnaires. The study was mainly descriptive in nature. The data collected was analysed descriptively and presented through figures, frequencies, tables and percentages. The findings of the study indicate that micro enterprises in Lusaka are faced with internal and external constraints to growth, such as excessive competition, lack of access to finance, vulnerability to crime, lack of market demand, high family demands and unrealistically high cost of stock. Other constraints were found to be administrative corruption, constrictive import / export regulations, uncertainty regarding business conditions and legal as well as regulatory constraints. It was also found that many micro enterprises were not adhering to the laid- down regulatory and legal restrictions in force in the city of Lusaka. Often the local authority officials charged with the responsibility of enforcing these regulations were unable or unwilling to effectively do so; hence many micro enterprises were getting away with illegal practices. Some recommendations arising from the findings of this study are that micro enterprises have to be encouraged to operate formally rather than remaining in the informal sector. Female representation in the micro enterprise sector also needs to be increased by adopting deliberate policies which help alleviate constraints faced by female business owners. Lastly, the government needs to ensure that the already existing policies aimed at the micro enterprise sector are properly implemented.

Author dc:creator

• Musona, Victoria

• Micro enterpreses
• Lusaka

Language dc:language.iso

en

Handle dc:identifier.uri

http://hdl.handle.net/11070/1467

OAI identifier oai:identifier

oai:repository.unam.edu.na:11070/1467