An Assessment of Loan Accessibility and its impact on the growth of small and medium enterprises in Malawi: a case study of Senti Market SMEs

This study evaluates loan accessibility and its implications for the growth and sustainability of small and medium enterprises (SMEs), focusing specifically on the case of Senti Market. SMEs are vital for economic development, yet they often face significant barriers in accessing finance, the main objectives of the study were to examine the key factors affecting access to loan facilities by SMEs, to assess the extent to which loan accessibility influences the growth and sustainability of SMEs and lastly to analyze the challenges faced by SMEs in meeting loan requirements set by financial institutions.Through a mixed-methods approach, The study was based on both qualitative and quantitative techniques, the researcher used a self-administered questionnaire and interviews to collect primary data. Secondary data was collected from Ministry of trade and industries and Small and Medium Enterprise Institute, Journals and different websites. Data was then analyzed and presented in graphs, charts and tables, followed by critical and logical explanations to provide better understanding of the results.
The findings reveal that improved loan accessibility directly correlates with enhanced growth metrics, including increased revenue, job creation, and innovation within these enterprises. Furthermore, the research highlights the critical role of tailored financial products that accommodate the unique needs of SMEs, which can foster not only immediate business growth but also long-term sustainability.
In Conclusion from this study the researcher would recommend for policy interventions aimed at lowering barriers to financial access by SMEs, enhancing financial literacy programs, and developing supportive financing schemes that encourage SME development. By addressing these issues, stakeholders can contribute to the robust growth of SMEs, thereby bolstering Malawi’s economic stability and resilience.