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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

Author

Listed:
  • Judith Banda

    (University of Zambia, Zambia)

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.

Suggested Citation

Handle: RePEc:cwk:eafjke:2026-02
DOI: 10.59413/eafj/v5.i1.2
as

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JEL classification:

  • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
  • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
  • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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