This study explores the role of strategic management practices in enhancing the business performance of small and medium-sized enterprises (SMEs) in Lusaka's Central Business Area. SMEs are vital to Zambia’s economic development, contributing to job creation, innovation, and poverty reduction. However, these enterprises face significant challenges, such as operational inefficiencies, limited access to capital, and insufficient technical expertise, which often hinder their growth, productivity, profitability, and sustainability. The research focuses on three key components of strategic management: strategic planning, strategy implementation, and strategy evaluation, to understand their impact on SME performance. Strategic planning helps businesses align their resources effectively, ensuring they meet both short-term and long-term objectives. Strategy implementation enables SMEs to take action to overcome barriers, manage risks, and capitalize on opportunities. Strategy evaluation ensures businesses can track their progress and adapt to changing market conditions, which is essential for maintaining competitiveness in a dynamic environment. A mixed-methods research approach was used to gather data through surveys, interviews, and case studies from a sample of 120 SME owners and employees in Lusaka. This approach provided both quantitative and qualitative insights into the impact of strategic management practices. The findings show a clear positive correlation between the adoption of effective strategic management and improved business performance. SMEs that engaged in strategic planning allocated resources more efficiently, while those that implemented strategies successfully overcame operational barriers and market challenges. Additionally, regular strategy evaluation allowed businesses to adapt and remain resilient amid economic uncertainties. Many small businesses lack access to professional consulting services and struggle with technological investments, skilled labor, and market research.