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

The resilience of Micro, Small, and Medium Enterprises (MSMEs) following external economic shocks such as the COVID-19 pandemic is closely linked to their level of financial inclusion. This empirical study examines the extent and effectiveness of financial inclusion among MSMEs operating in Olympia Market, Lusaka, Zambia, in the post-COVID-19 period. Grounded in Financial Inclusion Theory, Resource-Based Theory, and the MSME Sector Development Model, the study adopts a mixed-methods approach, collecting data from 45 formally registered firms through structured questionnaires and semi-structured interviews. The findings reveal significant financial exclusion, with the majority of MSMEs lacking access to formal financial support during and after the pandemic. Informal mechanisms such as village banking emerged as the dominant source of finance, reflecting structural deficiencies within formal financial systems. Key barriers to financial access include limited credit availability, high interest rates, stringent collateral requirements, regulatory constraints, technological barriers, and low financial literacy. Using the DEMATEL technique, credit inaccessibility was identified as the primary driver of financial marginalisation. The study recommends reconfiguring financial services to better accommodate MSMEs by reducing collateral demands, simplifying access procedures, integrating informal financial networks into the formal financial system, enhancing digital infrastructure, and implementing comprehensive financial literacy programs to strengthen MSME resilience.