An Investigation on Constituency Development Funds (CDF) and Citizens Economic Empowerment Commission (CEEC) Loan Compliance by Medium Small and Micro Enterprises (MSMEs): A Case Study of Chinsali District (Zambia)

This study investigated Constituency Development Funds (CDF) and Citizens Economic Empowerment Commission (CEEC) Loan Compliance by Medium Small and Micro Enterprises (MSMEs) In Chinsali. The study was done to further comprehend the factors that limit CDF/CEEC loan compliance by MSMEs. The study intended to attain the following objectives: examine the level of compliance of CDF/CEEC loan requirement, evaluate different factors that influence compliance with loan Conditions by MSMEs, Assess the economic impact of CDF and CEEC loans on the growth and sustainability of MSMEs. The study applied Quantitative research methods to drive the findings where a total of 201 MSMEs in Chinsali participated indicative of 99% participation rate. Questionnaires were administered randomly to participants, where data analysis was done through SPSS V26 presented by means of descriptive and inferential statistic. Th study revealed that most MSEMs have business income that is > ZMK 5000, and obtain both long- and short-term loans ranging from ZMK 5000 to < 40000. The study reveals a positive correlation between loan Range and Compliance (p=0.00, sig at 0.01), Business Income and Compliance (p= 0.00, sig at 0.01). The study recommends that MSMEs, should increase income through projective planning and effective management, they should also be improvement of financial education through capacity building meeting, to enhance business expansion and loan compliance. In addition to the above MSMEs should apply for loans that are attainable and fit their business models.