The Prevalence of Locally Owned Enterprises and Their Role in Economic Growth and Development in Chipata District of Zambia

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DOI: 10.21522/TIJMG.2015.06.01.Art003

Authors : Ezekiel Mtonga


Enterprise development is key in driving the growth of the local economies around the global. Economic growth is an important factor when it trickles down and triggers the availability of jobs, wealth creation, and improved standards of living. The study aimed at assessing the role of entrepreneurship in economic growth and development of Chipata district of Zambia. The objectives of the study included; an investigation of the prevalence of locally owned business enterprises in Chipata district, establishment of the types of activities to which entrepreneurs are involved, an examination of the business growth and to find out how the local entrepreneurial activities were helping people in poverty alleviation in Chipata district. The study was limited to Small and Medium Enterprises (SMEs) in Chipata district; town centre. The study implored a case study design to address the research questions. Questionnaires were used as means of collecting data from the business owners. The study sampled 60 business units in Chipata district. The sample was identified by means of specific purposive sampling. All ethical considerations were taken into account. The findings of the study revealed that most business organisations were male gender dominated, sole proprietors and had financial challenges. It was further established that agriculture was the major business activity. Arising from the findings above, the study recommends that Government should devise a deliberate policy that would help finance SMEs, and waive taxes and levies on start-up SMEs.

Keywords: Entrepreneurship, Small Medium Enterprises, Economic Growth.


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