Assessing the Effectiveness of Retail Trade Small and Medium Scale Enterprises in Promoting Job Creation: A Case Study of Kabushi Ndola, Zambia

Small and medium scale entreprises SMEs are widely recognized as key drivers of employment creation in developing economies. In Zambia, the most active SME categories, particularly within urban and peri-urban communities. This study assessed effectiveness of retail trade SMEs in promoting job creation in Kabshi constituency Ndola. The main objective of the study was to evaluate the effectiveness of retail trade SMEs in creating employment opportunities in Kabushi. Specifically, it seeks to identify the types and scale of retail SMEs operating in the area, assess the number and nature of jobs they provide, and examine the challenges they face in expanding employment. A mixed-methods approach was employed with a sample size of 50. The study results revealed that majority of SME sector in Kabushi is dominated by grocery shops and kiosks (33.3%) and clothing stalls (23.3%) this suggests that most SMEs focus on fast-moving consumer goods (FMCGs) and basic household items. The findings also revealed that retail SMEs play a significant role in providing employment opportunities, particulary for youths and women, Most SMEs employee between 1 and 5 workers, representing (40%) with only a few employing more than 10 workers, at (10%), this shows that while SMEs do create jobs, their contribution per enterprise is relatively small. Their effectiveness is limited by financial constraints (73.3%), which hinders business expansion, high operational costs (60%),poor infrastructure (50%) were also reported as significant challenges. The study concludes that retail SMEs have a strong potential to contribute to sustainable job creation if supported through financing, training, market structures, and policy reforms. Recommendations include strengthening SME financing mechanisms, providing capacity building programs, improving infrastruture and enhancing policy support. This study therefore seeks to bridge that knowledge Gap.