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Low Uptake of Constituency Development Fund among Small and Medium Enterprise in Kafue, Zambia

Author

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  • Joe Mubuyaeta Likando

    (Institute of Distance Education, University of Zambia, Lusaka)

  • Austin Mwange

    (Institute of Distance Education, University of Zambia, Lusaka)

  • John Moose

    (Institute of Distance Education, University of Zambia, Lusaka)

  • Francis Simui

    (Institute of Distance Education, University of Zambia, Lusaka)

Abstract

The purpose of this study was to explore the challenges that contribute to low uptake of Constituency Development Fund (CDF) among Small and Medium scale Enterprise (SMEs) in Kafue, Zambia. Small and medium enterprises (SMEs) have been identified as the substance for economic growth and national development for both developed and developing countries. The method in this study was sought to comprehend the challenges that led to low uptake of constituency development fund among the SMEs of Kafue District. The study adopted a qualitative approach and employed a purposive sampling. Primary data was collected from 40 study respondents using; semi-structured interviews, literature review and two focus group discussions (FDGs). The data was analysed in a thematic approach and there was document analysis and validating of data. The results of this study identified the challenges affecting the performance of SMEs in utilizing the existing CDF, and some of the findings were; inconsistent disbursement, lack of accountability, lack of new technology, lack of skills labour, government unfavorable fiscal policy and policy in consistences, lack of sensitization, political influence and little money or insufficient fund. The emergent themes reported in this study indicate significant qualitative, disparities on the challenges among SMEs on the low uptake of CDF. This in return, affects the development of communities where these SMEs operate with business dimensions across different contexts. Our findings in this study suggests increase of 40% allocation of funds in the current CDF policy of 2022, monitoring and implementation programs must be strengthened, and skills training should be given enough concentration on both SMEs and CDF technocrats. Lastly, the corporate entrepreneurs should inculcate the team spirit of training and developing their management and workforce in order to build a strong capacity building, that is ready to face business challenges and take advantage of Constituency Development Fund. In conclusion, the study suggests that policy makers may consider the findings in this study, to formulate policies which may create an environment that is feasible for the development of SMEs through Constituency Development Fund in Kafue, Zambia.

Suggested Citation

  • Joe Mubuyaeta Likando & Austin Mwange & John Moose & Francis Simui, 2023. "Low Uptake of Constituency Development Fund among Small and Medium Enterprise in Kafue, Zambia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 138-152, June.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:6:p:138-152
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    References listed on IDEAS

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    1. Laura Langbein & Stephen Knack, 2010. "The Worldwide Governance Indicators: Six, One, or None?," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 350-370.
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