Explanatory factors for the success of Small and Medium Enterprises in Lubumbashi, DR. Congo

Abstract

In a constantly changing economic environment, the ability of a company to sustain its activities over time is a key issue for achieving success. Indeed, companies face many internal or external difficulties that threaten their survival. The objective of this study is to analyze how companies, particularly SMEs in the commercial sector of the city of Lubumbashi, manage to maintain their activities over time. 3 mains categories of factors were identified, namely individual, organizational and societal factors that enable SMEs to ensure their success. This study therefore used Cox regression to analyze the data collected using a survey questionnaire from 33 SMEs operating in the commercial sector of the city of Lubumbashi. The results of the study demonstrate that conducting market research from the outset significantly improves the chances of survival by allowing for effective adaptation to changing customer needs; professional networking, which begins to solidify in the second year of operation, offers crucial opportunities through strong partnerships, allowing SMEs to survive for up to 8 years ; and having initial shrae capital between USD 1,501 and USD 2,000 ensures sustainability beyond the critical 8-year threshold. Internal resources and the manager’s relational capital take precedence over societal factors, whose influence is statistically negligible in this context. 

Classification JEL : M21

Paper type : Empirical Research