Exploring the barriers to Zambian SMEs’ global expansion: a review of literature

Abstract

This study explores the barriers to global expansion faced by Small and Medium Enterprises (SMEs) in Zambia, a sector that plays a critical role in the country’s economic development. Despite their significant potential to contribute to employment generation and GDP growth, Zambian SMEs encounter various challenges that impede their internationalization efforts. Through a comprehensive review of existing literature, this research identifies several key obstacles, including financial constraints that limit access to essential capital, regulatory and policy challenges that create a complex business environment, market access limitations that restrict entry into foreign markets, technological gaps that hinder competitiveness, and infrastructure deficiencies that increase operational costs. This research adopts a desk-based methodology, utilizing exclusively secondary data sourced from a variety of materials, including official reports, academic and industry research, international studies, and market analyses. The Boolean Search Method was employed to systematically locate relevant documents pertaining to the research objectives, with a specific focus on developing countries, particularly Zambia. The collected data was organized into themes and categories aligned with the study's aims, enabling the comparison of findings across sources to identify trends, patterns, and discrepancies. The findings of this study emphasize the urgent need to address these barriers in order to enhance the global competitiveness of Zambian SMEs. By identifying the specific challenges unique to this context, the research underscores the importance of tailored solutions. Additionally, the study offers targeted policy recommendations aimed at improving access to finance, streamlining regulatory frameworks, and fostering skills development among the SME workforce. These recommendations are designed to support SMEs in their quest for international markets. Overall, this research contributes to a deeper understanding of the unique challenges faced by Zambian SMEs and highlights the necessity for focused strategies to facilitate their successful integration into the global economy.