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Financial Literacy and Entrepreneurial Decision-Making Among Informal Traders in Zambia

Author

Listed:
  • Kampamba Chibesa

    (Institute of Distance Education, The University of Zambia)

  • Austin Mwange

    (Graduate School of Business, Lusaka, Zambia)

Abstract

Financial literacy is crucial in influencing entrepreneurial decision-making, especially for informal traders in Zambia, who work within a dynamic yet financially limited environment. This research examines how financial literacy affects the decision-making processes of informal traders in Lusaka, Zambia. A mixed-methods approach was used, gathering data from 350 informal traders through structured surveys and qualitative interviews. Results indicate that higher levels of financial literacy are associated with better decision-making in areas such as business planning, investment selections, and financial management. Regression analysis findings show that financial literacy is a significant predictor of entrepreneurial decision-making (β = 0.54, p

Suggested Citation

  • Kampamba Chibesa & Austin Mwange, 2024. "Financial Literacy and Entrepreneurial Decision-Making Among Informal Traders in Zambia," East African Finance Journal, East African Finance Journal, vol. 3(2).
    • Handle: RePEc:cwk:eafjke:2024-17
    DOI: 10.59413/eafj/v3.i2.11
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    References listed on IDEAS

    as
    1. Adele Atkinson & Flore-Anne Messy, 2013. "Promoting Financial Inclusion through Financial Education: OECD/INFE Evidence, Policies and Practice," OECD Working Papers on Finance, Insurance and Private Pensions 34, OECD Publishing.
    2. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
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    Cited by:

    1. Chabatama, Eugene & Mundende, Kasonde, 2026. "Empirical Study of the Entrepreneurial Resilience of Street Vendors in Lusaka District, Zambia," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(3).
    2. Yvonne Mumba & Austin Mwange, 2025. "Assessing the Role of Financial Inclusion in Enhancing Micro, Small, and Medium Enterprise (MSMEs) Resilience Post-COVID-19 in Zambia: A Case of Olympia Market," East African Finance Journal, East African Finance Journal, vol. 4(1).
    3. Chabatama, Eugene & Mundende, Kasonde, 2026. "Empirical Study of the Entrepreneurial Resilience of Street Vendors in Lusaka District, Zambia," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(3).

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