An Assessment of the Factors that Lead to SME Success in the Agro Business Sector: A Case of Ndola District

Abstract

SME success provides numerous advantages to both the SME owner, the individuals employed by the SME and the country at large as it gives government the needed revenue through assorted taxes that are paid by the SMEs. These paid taxes are in turn used to develop the country through things such as building roads, buying hospital medication, and providing assorted services to the country. However, despite the many benefits that come with SMEs, there are very few SMEs that survive beyond five years and those that do, often struggle to break even. Despite the efforts made by government and various stake holders to help SMEs survivor, only a few of them manage to have success. Therefore, this study sort to analyse the factors that lead to SME success with the focus of SMEs in the agro business sector in Ndola district.

The objective of this study was to examine the SMEs in the agro business sector, to establish the factors that lead to SME business success and finally to evaluate factors that lead to SME success. Using the quantitative approach, data was collected using the structured closed-ended questionnaires which were distributed to 219 people of which 204 responded. This gave a 93% response rate. Probability sampling was used to get the sample to avoid all forms of bias. A pilot questionnaire was first sent out to get views on the validity of the questionnaires and to see if all the questions were making sense and helping answer the objective questions.