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Small and Medium Enterprises (SMEs) are central to the Zambia’s economy, but often struggle with sustained profitability. This study examined the influence of entrepreneurial characteristics on SME profitability in Zambia. Specifically, the study aimed at; (i) identifying the key influential entrepreneurial characteristic and (ii) analysing the relationships between entrepreneurial characteristics and SME profitability. Entrepreneurial characteristics examined included; innovativeness, risk-taking, autonomy, confidence/negotiation skills, readiness, need for achievement, experience and education.  Data were collected from 201 SMEs registered with the Patents and Companies Registration Agency (PACRA) across seven urban canters through structured questionnaires administered in face-to-face approach. A systematic random sampling technique was used to select respondents. Factor analysis, Pearson correlation, and chi-square tests were used to analyse the data. Findings revealed that entrepreneurial characteristics significantly influence SME profitability, with autonomy emerging as the most influential characteristic. However, correlation analysis indicated that autonomy and other characteristics including; education, experience, innovativeness, readiness, confidence, need for achievement, and risk-taking do not have a significant direct linear relationship, implying that their influence is contingent on contextual factors like finance, regulations, and markets. The study concludes that entrepreneurial characteristics alone are insufficient for profitability; instead, their influence depends on their alignment with environmental opportunities, offering insights for policy, training, and SME support interventions. Therefore, policy and practice should move beyond narrow emphasis on formal education or abstract entrepreneurial characteristics. Interventions should promote adaptive leadership, decision-making under uncertainty, and resource mobilisation that promote autonomous behaviour.  

This purely qualitative study is about the perceptions of growth for Wood Processing SMEs at Lusaka’s Buseko and Mandevu-Chaisa markets. The first objective was to highlight factors that can contribute to the growth of wood processing SMEs at Buseko and Mandevu-Chaisa markets to grow into viable commercial ventures. The second objective was to ascertain the challenges SMEs in the wood processing industry were facing. The third objective was to explore the strategies that can be implemented by the wood processing SMEs to ensure profitability and growth of wood processing business ventures. An interpretivism paradigm was adopted targeting a sample size of 20 SMEs that were identified using a snowball sampling method from a population 82 SMEs. The information was collected using semi structured interview guides and analysed using an inductive thematic approach. The findings revealed that there was available market for wood products and there was evidence of some SMEs in wood processing at the two markets growing into commercial ventures. Lack of specialized commercial equipment, lack of government support towards SMEs in wood processing and lack of formal training in wood processing were identified as challenges. Access to commercial equipment, taking wood processing industry as a quick method of employment creation and marketing wood products were identified as strategies that can be implemented to ensure profitability and growth of wood processing SMEs. The study recommended access to commercial equipment through cooperative loans and promoting training of more youths in carpentry and joinery in order to alleviate employment shortage.