The Role of Financial Capability in Entrepreneurial Success Among Informal Traders in Lusaka, Zambia

Kampamba Chibesa and Austin Mwange
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Kampamba Chibesa: The University of Zambia, Institute of Distance Education, Lusaka, Zambia
Austin Mwange: The University of Zambia

African Journal of Commercial Studies, 2024, vol. 5, issue 4

Abstract: Financial capability is a crucial factor influencing entrepreneurial success, especially in the informal sector, where access to financial resources, literacy, and business acumen profoundly affect business performance. In Zambia, informal traders represent a substantial segment of the economy yet frequently encounter financial exclusion and knowledge deficiencies that impede their business development. This study investigates the influence of financial competence on entrepreneurial success among informal traders in Lusaka. The study examines financial self-efficacy, financial literacy, access to financial services, and financial behavior as essential elements of financial competence through a comprehensive literature analysis. The results indicate that enhanced financial literacy, access to finance, and improved financial practices contribute to superior entrepreneurial performance. The study indicates that financial capacity is a crucial catalyst for sustainability and business expansion among informal traders, advocating for financial education initiatives and inclusive financial laws to bolster economic participation.

Keywords: Financial capability; financial literacy; informal traders; financial behavior; financial access; entrepreneurial success; Zambia (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2024-57

DOI: 10.59413/ajocs/v5.i.4.11

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