Effects of Load Shedding on SME Performance in Ndola, Zambia: Evidence on Output, Revenue, and Operational Efficiency

The study examined how load shedding affects small and medium enterprises (SMEs) in Ndola, Zambia. The study focused on the effects of frequent power interruptions on the output, revenue, and operational efficiency. A descriptive cross-sectional research design was used, involving 58 registered SMEs from various economic sectors in Ndola. Data were collected using structured questionnaires and analyzed in MegaStat using frequencies, the Chi-square test, and simple linear regression analysis. The findings indicated that load shedding had a substantial effect on output levels, with 41.4% of respondents reporting reductions of up to 50%, while 31% recorded losses exceeding 50% (p < 0.001). Revenue levels were similarly affected, as 50% of respondents reported losses of up to 50%, while 34.5% experienced losses above 50% (p = 0.001). The results also showed a strong positive correlation (r = 0.694) between operational disruption and revenue loss. Operational efficiency was likewise significantly affected, with 51.7% of respondents reporting efficiency reductions of up to 50%, while 34.5% indicated losses exceeding 50% (p = 0.001). The heavy dependence on ZESCO as the primary power source (91.4%) is particularly telling. This near-total reliance on the national grid exposes SMEs to acute vulnerability during power disruptions. The study therefore concludes that load shedding significantly and consistently weakens SME performance by lowering output, reducing revenue, and limiting operational efficiency. To address these challenges, the study recommends sector-specific load shedding schedules, creating an SME energy resilience fund, accelerating diversification of the energy mix, and strengthening operational adjustments of load shedding schedules