Global Journal of Management and Business Research, B: Economics and Commerce, Volume 23 Issue 1

Global Journal of Management and Business Research: B Economics And Commerce Volume 23 Issue 1 Version 1.0 Year 2023 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Benefits the SMEs Derive from Microfinance Institutions on Empowerment and Poverty Alleviation in Chazanga Compound, Lusaka, Zambia © 2023. Mr. Francis Daka. This research/review article is distributed under the terms of the Attribution - NonCommercial - NoDerivatives 4.0 International (CC BYNCND 4.0). You must give appropriate credit to authors and reference this article if parts of the article are reproduced in any manner. Applicable licensing terms are at https://creativecommons.org/licenses/by-nc-nd/4.0/. By Mr. Francis Daka Gideon Robert University Abstract - The back bone of every economy is the private informal sector (SMEs) and most employment opportunities in Zambia largely focus on small and medium scale enterprises. Hence the contributions the sector makes to economic growth and development through job creation and can’t be overemphasized. However, SMEs were almost dismissed form the formal financial sector in Zambia. The small and medium scale enterprises face difficulties in accessing the financial opportunities, enterprise development skills, face unfavourable regulatory bottlenecks and inappropriate market structures and these therefore, poses serious restriction to their growth and development in the economy. When microfinance was properly harnessed, could make significant contributions to the economic growth and development because it promotes higher investments leading to economic empowerment which in turn promotes confidence, self-esteem, and build capabilities, particularly for the vulnerable majority. In other words, it creates access to productive capital for the poor and subsequently reduces poverty. Keywords: poverty alleviation, microfinance institutions (MFIs), loan portfolio, financial accessibility, small and medium entrepreneurs (SMEs). GJMBR-B Classification: JEL Code: M21 BenefitstheSMEsDerivefromMicrofinanceInstitutionsonEmpowermentandPovertyAlleviationinChazangaCompoundLusakaZambia Strictly as per the compliance and regulations of: