Background

Since the early 1970s, Zambia’s government controlled most of the business activities in all sectors of
the economy. However, poor performance of the parastatal sector made the government to introduce
a free market economic policy in 1991. Its aim was to liberalize the economy, to reduce unemployment
and poverty. Through the SED Act of 1996, the SMEs sector was identified as an instrument that
would be used to achieve such goals.

As late as 1998, studies indicate that many SMEs developed in community markets of Lusaka.
Chelston market was one of the community markets which had a good number of SMEs that sprung
up at that particular time. Many people were free and zealous to conduct their own business activities
as the government did not intervene.

From their establishment up to date, SMEs of Chelston market have always conducted business
oriented towards the local segments of the market. Most of them are house hold enterprises owned
by a single person with or without the help of family members. Their business activities are largely in
trading, simple manufacturing and only a small portion are engaged in service-related businesses. The
range of trading activities pertains to consumer goods, industrial products, agricultural inputs and
produce. Among their manufactured products include textile products, carpentry & other wood
products, light engineering and metal fabrication, food processing, leather products, handicrafts and
ceramics. The services sector includes restaurants and food preparation, hair salons and barbershops,
passenger and goods transport, building construction, and telecommunication services.

As if it were not enough, Chelston market’s SMEs contribute to the performance of the national
economy of Zambia but they face certain challenges that hinder the growth of their business activities.