The Role of Local Government in the Growth of Small and Medium Enterprise in Kafue, Zambia

Abstract

Due to several limitations, the business climate for small and medium-sized firms has grown more complicated, dynamic, and uncertain. Therefore, firms should work with local governments to boost their efforts to retain competitiveness in the market. Local government needs to support entrepreneurship if small and medium-sized businesses are to become more adaptable and competitive. In order to better understand how local governments might support the expansion of Small and Medium enterprises (SMEs), this study sought to take a comprehensive approach to the topic. It focuses on SMEs and how they might advance rural development in the Kafue district by looking at cases of SMEs operating within cooperatives. The study’s methodology involved a qualitative descriptive inquiry on interaction, continuity, and situations that were framed by data collection from the respondents. Three local authorities, two SME officers, and 10 certified small and medium-sized businesses were specifically chosen for the interviews. The study augmented the proposal theoretical framework that was built as the ultimate result in connection to the study findings after thematic data analysis from the interviews was initiated. According to the study’s findings, local governments play an important role in the expansion of small and medium-sized businesses as a result of the decentralization policy that was put in place. This is because SMEs gained training in areas like financial literacy, business registration, access to loans and grants, and the knowledge of how to develop high-quality production. The study primarily helps the Local Authority (LA) create a business management system and entrepreneurial abilities that promote socioeconomic development. The study suggests that the government keep aiding citizens by offering business loans, streamlining business permits, reducing the percentage of income taxes, and offering business help.