Evaluating the Effects of Small to Medium Enterprises (SMEs) on Skills Development in Lusaka District, Zambia

Chisha Mulenga; Kasongo Alfred; Linda Sibanda; Sylvester Mugala; Mulako Hachamba

doi:10.37284/eajbe.8.1.2787

Chisha Mulenga Eden University
Kasongo Alfred Eden University
Linda Sibanda Eden University
Sylvester Mugala Eden University
Mulako Hachamba Eden University

DOI: https://doi.org/10.37284/eajbe.8.1.2787

Keywords: Skills Development, Small and Medium Enterprises (SMEs), Employee Training, Quantitative Analysis

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Abstract

This study investigates the role of Small and Medium Enterprises (SMEs) in fostering skills development in Lusaka District, Zambia. Employing a mixed-methods approach, the research integrates quantitative data from 210 respondents across retail, service, and manufacturing sectors with qualitative insights from interviews and focus group discussions. Quantitative analysis reveals a strong positive correlation (r = 0.740, p < 0.01) between SME training programs and skills development outcomes, with regression results showing a significant effect (B = 0.305, p < 0.001). Key findings highlight that SMEs enhance employee productivity, innovation, and retention through tailored, practical training programs. However, challenges such as resource constraints, time limitations, and inadequate external support restrict their capacity to implement comprehensive initiatives. The study emphasizes the need for collaborative efforts between SMEs, government, and educational institutions to address these barriers and maximize their potential as incubators of talent. Policy recommendations include subsidized training programs, infrastructure development, and fostering partnerships to ensure SMEs' sustainability and competitiveness in driving economic growth

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