Analysing the Effectiveness of Micro, Small and Medium Enterprises Strategies for Employment Creation: A Case Study of MSMEs in Ndola's Retail Business Sector

Micro, Small and Medium Enterprises (MSMEs) play a critical role in driving economic growth, generating employment, and reducing poverty worldwide. They make up the largest segment of businesses globally and are key contributors to inclusive economic development. Regional studies in Sub-Saharan Africa, such as Solaja et al. (2024), highlight the centrality of SMEs in economic transformation through job creation, innovation, and diversification—despite persistent challenges such as limited access to finance, inadequate infrastructure, and technological constraints. In Zambia, MSMEs have similarly been recognised as vital to national development, significantly contributing to GDP, employment, and poverty reduction, particularly in urban centres like Lusaka and Ndola. Given the importance of MSMEs in fostering employment, it is essential to assess how effective their employment creation strategies are, especially in Ndola, a major commercial hub in the Copperbelt Province. This study sought to identify the business growth strategies employed by MSMEs, evaluate their effectiveness in creating jobs, examine the relationship between business growth and employment creation, and determine the limitations affecting MSME growth. A mixed-method approach case study design was adopted, utilising stratified random sampling. The target population comprised MSME owners, managers, and employees operating within Ndola’s retail sector. A sample size of 50 MSMEs was selected and deemed methodologically suitable and practically feasible. The findings revealed that 60% of the businesses considered their employment creation strategies to be effective. The study concluded that MSME-led employment creation strategies are generally effective and that MSMEs in Ndola employ a range of growth strategies—including market penetration, market development, digital transformation, and product development—to support both business expansion and job creation. However, while business growth contributes to employment, the relationship is not automatic; hiring decisions depend on the type of growth pursued, available financial resources, and firm-specific priorities. The study also identified key challenges constraining MSME growth, notably limited access to finance, poor infrastructure, and high loan interest rates.