Assessment of the Effect of Road Infrastructure Development on Market Accessibility among Manufacturing MSMEs In Lusaka Zambia
1Suwilanji Mwengu, 2Euston Trevor Kapotwe-PhD
1,2Graduate School of Business, University of Zambia, Zambia.
https://doi.org/10.47191/jefms/v8-i4-45ABSTRACT:
The aim of this study was to assess the effect of road infrastructure development on market accessibility among manufacturing Micro, Small and Medium-sized Enterprises (MSMEs) in Lusaka, Zambia. Infrastructure development is a critical factor in promoting economic growth and development, particularly among Micro, Small and Medium Enterprises (MSME'S). According to the World Bank (2019), infrastructure development can have a significant effect on the growth and competitiveness of MSMEs. Despite the importance of road infrastructure development for the growth and competitiveness of manufacturing MSMEs in Zambia, there is a significant gap in the existing literature on the effect of infrastructure development on market accessibility among manufacturing MSMEs. Specific objectives included examining the effect of road infrastructure on market accessibility, evaluating key infrastructure factors affecting market access, and to determine the strategies that can be implemented to overcome accessibility challenges faced by MSMES. The study utilized a survey of 240 respondents from various MSMEs in Lusaka and 22 participants who were purposively selected. The study adopted a mixed methods approach combining both qualitative and quantitative. Key findings revealed that improved road infrastructure positively influences market accessibility by reducing transportation costs, enhancing delivery times, and opening new market opportunities. However, challenges such as poor road quality, traffic congestion, and high transportation costs persist. The Chi-Square test results indicated a significant association between the quality of road infrastructure and market accessibility perceptions among MSMEs. Several infrastructure projects, including the, great East Road Rehabilitation, Great North Road Expansion, and Tokyo Road (Ring Road), were highlighted for their positive impact on market accessibility. Thus, the study concluded that continued investment in road infrastructure is crucial for the growth and development of MSMEs, and addressing the identified challenges can further enhance market access and contribute to regional economic development. The findings underscore the need for continuous investment in road infrastructure to support MSMEs and foster economic growth.
KEYWORDS:
Road infrastructure development, market accessibility, Manufacturing MSMEs, transportation costs, delivery times.
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