Sustainability challenges of matching grant-funded enterprises: Qualitative perspectives from smallholder farmers and implementers

Abstract

Despite substantial investment in matching grant programmes to promote rural enterprise development, many funded farming enterprises fail to remain sustainable beyond the funding period. This study examines the reasons why some farming enterprises funded through matching grants fail to remain sustainable in Chipili District, Zambia. The study seeks to answer the question: what challenges prevent matching grant-funded farming enterprises from succeeding in the long term? The research is guided by principal-agent theory, the sustainable livelihoods framework, and institutional theory. The target population were beneficiary farmers of the Matching Grant Facility of Chipili District and the government officers. The research design employed was qualitative, and a total of nineteen (19) participants participated in semi-structured interviews and three (3) focus group discussions, who were sampled in a purposive manner. Thematic analysis was used to analyse data in order to establish common trends that affect the sustainability of a farming enterprise. The results indicate that matching grants assisted others to initiate and grow their businesses; however, most of the projects did not survive, owing to a number of challenges. These included poor access to markets, lack of certified seed, weak exit strategies, and delays in administrative procedures. Other challenges were low financial literacy, inadequate training, limited access to additional finance, poor stakeholder involvement, weak leadership, and conflicts within farmer groups. The study concludes that providing funds alone is not enough to ensure the success of farming enterprises. Based on the findings, the study recommendations are continued capacity building, stronger institutional support, and clear exit strategies to improve the sustainability of matching grant-funded enterprises. The findings are useful for policymakers and development practitioners involved in the design and implementation of matching grant programmes aimed at supporting sustainable rural livelihoods.