Assessment of Challenges Affecting the Sustainability of Small and Medium Enterprises in a Changing Business Environment: A Case of the Tailoring Industry in Kamwala Shopping Centre

Small and Medium-Sized Enterprises (SMEs) play a significant role in economic development through employment creation, poverty reduction, and contributions to national income. Despite their importance, many SMEs in Zambia face challenges that limit their growth and long-term sustainability. This study investigated the factors hindering the sustainability and viability of SMEs in Zambia, focusing on tailoring businesses operating within Kamwala Shopping Centre in Lusaka District. The study adopted a mixed methods research design that combined quantitative and qualitative approaches to provide a comprehensive understanding of the challenges affecting SME growth. Quantitative data were collected using structured questionnaires administered to a randomly selected sample of 100 tailoring SMEs, while qualitative data were gathered through interviews conducted until data saturation was achieved. Quantitative data were analysed using SPSS software, and linear regression analysis was employed to determine the relationship between selected independent variables and SME growth. The findings revealed that financial constraints were the most significant barrier to the growth and sustainability of tailoring SMEs. Limited access to affordable financing restricted business expansion, investment, and operational efficiency. The study also highlighted the importance of entrepreneurial and management skills in enhancing business performance and resilience. Based on the findings, the study recommended that the government introduce policies that encourage lending institutions to provide affordable loans to SMEs while strengthening measures to ensure loan repayment. It also recommended the use of trade schools to offer free management and entrepreneurial training workshops to SME owners. The study concluded that addressing financial and managerial challenges would strengthen the SME sector, promote economic resilience, and improve livelihoods within local communities in Zambia.

Small and Medium-Sized Enterprises, Financial Constraints, Sustainability, Entrepreneurial Skills, Business Growth and Viability

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