Effectiveness of strategies utilised by financial institutions in addressing the financing needs of women entrepreneurs: case study of in Lusaka district of Zambia.
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Date
2025
Authors
Chulu, Merit
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
By supporting women with access to finance, would create a transformative social and economic impact on women with their families and society at large. The empowering of women creates opportunities for the families because, they place a higher priority on spending on food, health, education of children and their family’s wellbeing. In Zambian women entrepreneurs own more than one-third of the country’s small businesses and more than 40% of its microenterprises. However, despite their pivotal role in the Zambian economy the lack of (or inadequate) access to tailor-made financial products and non-financial services offered by financial services providers is an important factor constraining women, particularly from low-income countries, from investing and earning more and ultimately having more resources at their disposal. This study investigates the financial strategic measures implemented by financial institutions in Lusaka Zambia to support the financial needs of women entrepreneurs. The study’s objectives specifically explored the availability of financial products, assess the level of literacy and comprehension of financial products available for women entrepreneurs. It also focuses on examining the factors associated with access to finance among women entrepreneurs. Therefore a mixed-methods approach was employed, with a quantitative survey conducted among 202 women entrepreneurs and qualitative insights gathered through thematic analysis of institutional strategies from 15 key informants that were done at ABSA Bank, Stanbic Bank and Unify financial institution. However the findings reveal significant gaps in the financial products offered to women entrepreneurs, with most respondents reporting limited access to tailored financial products. Furthermore, a large proportion of participants indicated that, they had limited awareness of targeted outreach programs designed
for women entrepreneurs. However, the study also highlights systemic barriers, despite the growth of women-led enterprises in Zambia, access to tailored financial services remains a critical barrier including high collateral requirements and lack of financial literacy, which hinder access to
financial services for women. The chi-square (χ2) test results established the following factors to be associated with access to finance among women education (p> 0.05), sensitization on financial education (p> 0.05), time period of loan debasement (p> 0.001), application for the loan (p> 0.001).
Furthermore, recommendation among the participants in the study, 69.80% indicated that they would want to be provided with financial education to improve their business. About 11.39% indicated that they need access to finances with low interest rates to help boost their businesses. Among the participants 18.32% indicated that they would need value addition funds to improve their quality of the products. The study concludes that there is an urgent need for financial institutions to innovate products tailored to women entrepreneurs, increase the accessibility of financial services, and enhance awareness of available programs. Policy reforms that are inclusive in targeted interventions are recommended to address the systemic barriers and improve the financial access for women entrepreneurs in Lusaka. Furthermore, providing financial education services would help women entrepreneurs to improve their business and understand the market dynamics.
Keywords: Women Entrepreneurs, Financial Literacy, Access to Finance, Financial Products, Business Growth
Description
Thesis of Masters of Business Administration in Finance.