Factors Affecting the Listing of Small Businesses on the Lusaka Securities Exchange Alternative Market in Zambia

Small and Medium Enterprises (SMEs) are vital to Zambia's economy, contributing significantly to GDP, employment, and business activity. Despite the launch of the Lusaka Securities Exchange Alternative Market (LuSE Alt-M) in 2015 to address SME financing gaps, no SMEs have listed on the platform. This study investigates the factors that hinder SME participation in LuSE Alt-M. The study employs a mixed-methods approach, with data collected through questionnaires targeting key stakeholders, including regulators and financial institutions. Descriptive and thematic analyses reveal significant barriers to listing, with low awareness and inadequate financial literacy emerging as the most critical challenges. Although SMEs generally recognize the potential benefits of equity financing, misconceptions about ownership loss and procedural complexities deter participation. The study recommends simplified listing processes, targeted financial literacy programs, enhanced marketing efforts, mentorship initiatives, sector-specific incentives, digital outreach, and strengthened collaboration among regulators, financial institutions, and business incubators to build a supportive ecosystem for SME growth and capital market participation.