Business accelerator interventions and MSME growth in Lusaka, Zambia.

The Zambian government and numerous stakeholders have been at the forefront of creating a conducive climate for MSMEs to thrive by implementing various programs and policies. Despite these interventions, the failure rate of MSMEs is alarmingly high and currently stands at 50% (Chilembo 2021). Business accelerator programs aim to improve the survival and success rate of MSMEs and consequently reduce the failure rate of MSMEs in the country. They have increased in number and popularity in the past 5 years. Considering that MSMEs are a key vehicle to national social-economic development, this study sought to assess the the influence of accelerator programs to the growth of the ventures they support. This study employed a mixed methods approach to
identify the support provided by business accelerators to MSMEs in Zambia, which type of support MSME’s found most valuable and to investigate the relationship between accelerator programs and MSME growth. The sample consisted of 5 Business accelerator firms and 50 MSMEs from
Lusaka. Questionnaires and interview schedules were used as instruments for data collection. The data was analyzed using descriptive and inferential statistics and presented in tables, bar charts and bar graphs. Some data was thematically and qualitatively analyzed. The study established that accelerator programs had a positive relationship to MSME growth. The findings indicated that the accelerator programs offered MSMEs interventions including capital, mentorship, training and networking. The study also concluded that training is the most beneficial intervention received by participants in acceleration programs. The study recommends need for increased capital funding for business start-ups and for purposes of expanding already established businesses. There is also
need to expand the training of new entrepreneurs in order to equip them with relevant skills that would enable them manage their businesses better, and steer their businesses in the right direction.