Analyzing Small and Medium Enterprises’ Perception towards Private Equity as an Alternative Source of Finance in Lusaka District

As guided by the Capital Structure theory, in order to obtain external financing, SMEs may either select debt type of financing or equity financing. Since typical SME cannot meet requirements be listed on Lusaka Stock Exchange, Private Equity remains an attainable source finance for who do not want financed with debt. This study aimed analyse perceptual preference private as alternative SMEs. To this objective, assessment was conducted Debt finance. Further, perception towards explored and themes that influenced various were investigated. A qualitative undertaken above-mentioned objectives. The employed a grounded theory approach interviews used primary data collection tool. Fifty-five (55) hold accounts Zambia Industrial Commercial Bank under Wholesale Retail trade industrial sector interviewed purposive sampling method used. From conducted, emerging theme preferred mainly cases where faced economic uncertainty, limited collateral, intended grow quickly, required technical assistance. However, loss control, lack legal framework unavailability firms hindered from utilizing finding is derived over largely positive have Negative perceptions also noted. study, therefore, went further both factors influence negative perceptions. These included assistance, payment mechanisms, duration methods. conclusion drawn because high-interest rates collateral Equity. concludes there are attributes equity, though exist. Loss decision-making concerns, availability finance, repayment non-requirement noted attributed conflicting Due situation, it recommended Financial Services Providers take keen interest mode potential market field. Additionally, researchers focus conducting feasibility extend mandate been historically providing include Finance Lastly, proposed studies carried out assess landscape Zambia. KEYWORDS: