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

Source: Author 2022 According to the above pie chart 1.0, showed that 60% of the total number of the small and medium scale entrepreneurs interviewed their businesses picked up, grew and expanded when they received the capital injection in form of loans which were obtained from the existing microfinance institutions in Lusaka. The loans enabled their businesses to grow, expand and remained stable to date. The businessmen and women gave testimonies on drastic reduction of poverty in their families when they obtained the funding from the microfinance companies and that their business productivity was real. 20% of the group which obtained the loans recorded average growth which represented a breakeven point where the business neither made loss nor profit but maintained the working capital. 15% of the entrepreneurs’ businesses recorded low growth although the businesses were still running smoothly. According to researcher’s observations the businesses had low sales because of the high competition in the market and that their locations were still being developed. The final 5% of the entrepreneurs recorded very low growth because these people feared to get the loans due to loans conditions and requirements of providing the assets as collateral and also feared that they might be arrested if they had failed to pay back the loans. IV. C onclusion This study was focused on the benefits the small and medium scale entrepreneurs get from microfinance companies in Chazanga compound. Fifty (50) entrepreneurs were picked randomly in the compound to take part in the research so as to enable the researcher establish the real benefits accrued to their businesses after obtaining the loans in relation to business profitability, poverty alleviation in their families, growth and expansion. This study showed that 95% of the small and medium scale entrepreneurs who obtained the loans from microfinance companies their businesses grew and expanded when they received additional capital which was injected in the business in form of loans. The loans enabled their businesses to grow, expand and remained stable. The businessmen and women gave testimonies on drastic reduction of poverty in their families as well when they obtained the funding from the microfinance companies and that their business productivity was real. The research results also showed a clear picture of the 5% who never obtained the loans from MFIs for fear of losing their assets if they had failed to pay back the loans that their businesses remained stunted because they lacked additional capital to boost their operations. In summary therefore, access to financial services from microfinance companies in Chazanga compound of Lusaka urban district, helped business growth, expansion, employment creation and reduced poverty for those entrepreneurs who obtained loan products and other services from MFIs. That further enhanced the income of the people and mandated the affordability of some basic necessities of life namely Level of Satisfaction Business Expansion Low Growth No Loan Average Growth Benefits the SMEs Derive from Microfinance Institutions on Empowerment and Poverty Alleviation in Chazanga Compound, Lusaka, Zambia 16 Global Journal of Management and Business Research Volume XXIII Issue I Version I Year 2023 ( ) B © 2023 Global Journals 1.1: Pie Chart Showing Level of Satisfaction Derived from the Microloans from Mfis a) Practical Implications Figure