From Legal Gaps to Strategic Assets the Impact of Service Mark Recognition on the Growth of Mining Support SMEs in Zambia

Abstract

This study investigates the economic impact of the Trade Marks Act No. 11 of 2023 on the growth of Small and Medium Enterprises (SMEs) within Zambia’s mining support sector. For 67 years, the previous 1958 legislative framework excluded service marks, creating an institutional void that hindered local firms from formalizing brand equity. Grounded in Institutional Theory and the Resource-Based View (RBV), the research employed a mixed-methods approach, analyzing primary data from 160 SMEs across the Copperbelt and North-Western provinces.
Quantitative results from OLS regression analysis (R^2 = 0.986) reveal that Service Mark Registration is a highly significant predictor of turnover growth (beta = 5.288, p < 0.001), effectively transforming "vulnerable intangibles" into protected VRIN assets. The study identifies a potent "North-Western Effect," where regional institutional maturity significantly moderates growth (beta = 4.614, p < 0.001), suggesting that modern multinational mining environments accelerate the benefits of IP formalization. Furthermore, a strong correlation between Local Content Compliance and turnover (r = 0.960) indicates a synergistic relationship between brand protection and legislative local participation.
Qualitative findings highlight an "Institutional Literacy Gap," where despite the new legal machinery, many SMEs remain unaware of the Madrid Protocol’s domestication. The study concludes that the 2023 Act has effectively "unlocked" the growth potential of service-based SMEs by providing a standardized signaling mechanism for quality and legitimacy. It recommends that the Patents and Companies Registration Agency (PACRA) and the Ministry of SME Development integrate IP registration into local content certification to sustain this growth trajectory through 2030.