The State of Business Practices and the Impact of BDS on MSMEs in Lusaka and Kabwe, Zambia

The micro, small and medium enterprises (MSME) sector is generally viewed as an important component in stimulating economic growth and alleviating poverty. Many national MSME development frameworks contain support mechanisms intended to unlock full potential harboured by the MSME sector. Business development support is just one such mechanism, and within which Business Development Services (BDS) provide a specific means of influencing MSME practices towards enhanced enterprise performance and greater economic impact. The paper has looked at the practices, impact of BDS and determinants of business performance in Zambia using both descriptive and econometric analyses. Current BDS interventions do not seem to be well-aligned to key choke-point areas that could unlock the potential of Zambia’s MSMEs. As such, BDS is not currently significantly influencing enterprise performance.