Investigating the Factors that Influence Business Expansion for SMEs Operating in the Construction and Real Estate Industries in Ndola, Zambia

Small and medium scale Enterprises (SMEs) play an important role in providing inclusive growth in the contemporary economy of Ndola district. The aim of the study was to examine the determinants of business growth for SMEs in the real estate and construction business in Ndola. The study employed a case study research design to achieve the objectives. The following were the research objectives; to examine the state and level of business growth of SMEs in the real estate and construction business in Ndola, to examine how business accountability affects the business growth of SMEs in the real estate and construction business in Ndola and to examine how the market and business policies affect the business growth of SMEs in the real estate and construction business in Ndola. The study used a questionnaire to collect the required data. The data collected was coded, quantified and analyzed quantitatively and qualitatively. Quantitative data was analyzed by use of a statistical package (STATA). The study concluded that SMEs in the real estate and construction industry in Ndola district are experiencing favorable business growth, driven by factors like urbanization and a growing customer base. Business accountability is one of the determinants of business growth as it had a strong positive relationship with profitability (r= .726 p = .004 two tailed). Access to finance and credit facilities is equally a determinant of business growth as it had strong positive relationship with business growth of SMEs in the real estate and construction business in Ndola (r = .627 p = .002 two tailed). Market and business policies showed a weak relationship with business growth of SMEs in the real estate and construction business in Ndola (r = .391 p = .000 r = .356 p = .011 two tailed respectively). The study recommended that SMEs in the real estate and construction business should strengthen their financial management, they should embrace technologic advancements, adapt to market trends and customer preferences, they should have access to finance and credit facilities, they should diversify their portfolios and risk mitigation and they should have continuous education and training.