Effectiveness of Strategies Utilised by Financial Institutions in Addressing the Financing Needs of Women Entrepreneurs: A Case Study of Lusaka District, Zambia

Abstract

Supporting women with access to finance has the potential to create transformative socio-economic impacts for families and society at large. In Zambia, women own over one-third of small businesses and more than 40% of microenterprises, yet they face significant barriers in accessing tailored financial and non-financial services. This study investigates the strategic financial measures implemented by institutions in Lusaka to meet the needs of women entrepreneurs. Using a mixed-methods approach, the research involved a quantitative survey of 202 women entrepreneurs and qualitative interviews with 15 key informants from ABSA Bank, Stanbic Bank, and Unify Financial Institution. The findings reveal considerable gaps in the availability and accessibility of gender-sensitive financial products. Many respondents reported limited awareness of outreach programs, and systemic challenges such as high collateral requirements and low financial literacy were identified as major constraints. Chi-square (χ²) tests showed significant associations between access to finance and variables such as education, financial sensitization, loan application processes, and loan disbursement timelines. Notably, 69.80% of participants expressed the need for financial education, 11.39% requested low-interest financing, and 18.32% highlighted the need for value-addition support. The study concludes that financial institutions must develop inclusive, innovative products and expand financial literacy initiatives to better serve women entrepreneurs. Policy reforms targeting systemic barriers are essential to improving access to finance and enablings.