Challenges Confronting Small-Scale Businesses in Petauke District
Authors-Ng’uni Stanley, Mr. Mac'holder Mazumbo
Keyword-Small-scale businesses, Petauke District, financial constraints, infrastructure challenges, institutional barriers, entrepreneurship development
Small-scale businesses constitute the backbone of Zambia's economy, representing approx-imately 97% of all enterprises, contributing an estimated 70% to the Gross Domestic Prod-uct, and providing employment to roughly 88% of the national workforce. Despite this significant economic contribution, these enterprises face multifaceted challenges that im-pede their growth, sustainability, and developmental potential. This study investigates the challenges confronting small-scale businesses in Petauke District, Eastern Province, Zam-bia, a predominantly agrarian region where small enterprises serve as critical livelihood mechanisms for the local population. Employing a mixed-methods research design that integrates quantitative survey methodologies with qualitative interview and focus group approaches, the study examines three primary challenge dimensions: financial and capital-related constraints, infrastructural and market-related obstacles, and managerial, regulatory, and institutional impediments. The research is grounded in three complementary theoreti-cal frameworks—the Entrepreneurship Ecosystem Theory, Institutional Theory, and the Resource-Based View—to provide a comprehensive analytical lens for understanding the interplay between internal organizational capacities and external environmental conditions. Findings reveal that small-scale businesses in Petauke District confront severe financial constraints characterized by limited access to formal credit, prohibitive collateral require-ments, and exorbitant interest rates that restrict operational expansion. Infrastructural defi-ciencies, including unreliable electricity supply, inadequate road networks, and limited access to potable water, substantially elevate operational costs and constrain productivity. Furthermore, regulatory complexities, insufficient managerial competencies, and weak institutional support mechanisms perpetuate informality and restrict growth trajectories. The study contributes to the scholarly discourse on small business development in rural African contexts and provides evidence-based recommendations for policy interventions, institutional strengthening, and entrepreneurial capacity development tailored to the specif-ic socio-economic realities of Petauke District.
Doi-[http://doi.org/10.5281/zenodo.20515646]