Assessing the impact of Employee motivation on Job Performance in Small-Scale Businesses. A Case Study of Msugwi Market in Lilongwe,

This study examines the impact of employee motivation on job performance in small-scale businesses, with specific reference to Msungwi Market in Lilongwe, Malawi. Small-scale businesses play a vital role in the country’s economy, yet many operate under informal conditions with limited financial and human resource structures. In such environments, employee motivation becomes a critical factor influencing productivity, job satisfaction, and overall business performance. The main objective of the study was to assess how both financial and non-financial motivational factors affect employee job performance in small-scale businesses in developing economies.

The study adopted a quantitative descriptive-correlational research design. Data were collected using structured questionnaires administered to 39 employees working in various small-scale businesses at Msungwi Market. The data were analyzed using descriptive statistics, correlation, and regression analysis with the aid of SPSS. The study focused on motivational factors such as salary, recognition, job security, supportive work environment, and opportunities for growth.

The findings revealed that employee motivation has a significant positive influence on job performance. While salary was identified as an important hygiene factor, non-monetary incentives such as recognition, appreciation, a respectful work environment, and opportunities for personal growth were found to play a major role in enhancing employee motivation and performance. The study concludes that effective motivational strategies, particularly non-financial ones, are essential for improving employee performance in small-scale businesses.

The study recommends that small-scale business owners adopt cost-effective motivational practices such as recognition, supportive leadership, and skill development opportunities to enhance employee productivity and business sustainability in competitive local markets.