Investigating the Factors Affecting the Participation of SMEs in Foreign Trade: Empirical Evidence From SMEs in Ndola Town

This study investigated factors affecting the participation of Small and Medium Enterprises (SMEs) in foreign trade in Ndola, focusing on the level of participation, factors affecting imports, and factors affecting exports. A quantitative approach was adopted, using stratified random sampling across business sectors. Data were collected from 50 SMEs through self-administered structured questionnaires and analyzed using MegaStat software. The study found that 34.0% of SMEs participated in both imports and exports, 32.0% in imports only, 14.0% in exports only, while 20.0% had no foreign trade involvement. Results indicated a statistically significant association between business category and foreign trade participation, X2 (df =6)=35.12), p<0.000, with a moderate-strength association (Cramer’s V = 0.593). Regarding imports, 48.0% of respondents indicated a moderate influence of customs clearance and documentation, while 40.0% reported a moderate influence of trade finance and credit facilities. The Kruskal-Wallis test revealed no significant difference between the three import factors, H(2)=4.044, p=0.1324. Regarding exports, 40.0% of the respondents showed moderate influence of compliance requirements, 40.0% moderate influence of market information, and 40.0% moderate influence of government export incentives. The Kruskal-Wallis test confirmed that export factors did not differ significantly. H(2) = 1.428, p =0.4897. The study recommends strengthening export promotion programs, improving access to affordable trade finance, strengthening customs and logistics infrastructure, promoting technology adoption, and strengthening institutional coordination to increase the participation of SMEs in foreign trade