An Assessment of the Impact of Foreign Businesses on Financial Performance of Small and Medium Enterprises in Zambia: A Case of Chain Stores in Lusaka, Zambia

Judith Banda
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Judith Banda: University of Zambia, Zambia

East African Finance Journal, 2026, vol. 5, issue 1

Abstract: This study assesses the impact of foreign businesses on the financial performance of small and medium enterprises in Zambia, focusing on SMEs operating near foreign chain stores in Lusaka. Using a mixed-methods approach grounded in positivist philosophy, the research examines exposure to foreign competition, financial implications, and strategies for improving SME competitiveness. Findings indicate that foreign business presence does not significantly affect SMEs’ short-term financial performance or profitability measures such as Return on Assets and Return on Equity, but it influences long-term growth prospects. The study further reveals negative effects on SMEs’ access to capital, technology, and trading infrastructure, and recommends policy interventions to support SME competitiveness, growth, and sustainability.

Keywords: Competition; small and medium enterprises; foreign businesses; financial performance; growth (search for similar items in EconPapers)
JEL-codes: F23 L26 O16 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:eafjke:2026-02

DOI: 10.59413/eafj/v5.i1.2

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