Entrepreneurial Ecosystems and MSME Growth in Urban Zambia: Evidence from Lusaka’s Central Business District

Micro, small and medium enterprises (MSMEs) are increasingly recognised as key drivers of inclusive growth, livelihood resilience, and post pandemic economic recovery in developing economies marked by labour market informality and financial exclusion (OECD, 2023; Zahra, 2021). Recent scholarship further suggests that sustainable MSME growth depends on adaptive enterprise ecosystems. These ecosystems include inclusive finance, entrepreneurial capability, institutional support, and effective market integration (Acs et al., 2017; Spigel, 2017; Duncombe, 2022). Despite the growing economic importance of MSMEs in Zambia, many businesses still face major constraints. These include difficulties in accessing finance, unstable market performance, limited entrepreneurial skills, and burdensome taxation systems. This study examines the factors influencing MSME growth in Lusaka’s Central Business District. It focuses specifically on sales performance, financial literacy, interest rates, and taxation policy. The study adopted a positivist research philosophy and used a cross‑sectional explanatory survey design. Primary data was collected from 108 MSME operators through structured questionnaires. Data analysis involved descriptive statistics, correlation, and multiple regression techniques. The findings show that sales performance, interest rates, and taxation policy have a significant influence on MSME growth. In contrast, financial literacy showed a statistically insignificant relationship, despite its perceived importance for enterprise management. The results also indicate that MSME sustainability in urban Zambia is ecosystem dependent. It is shaped by the interaction between market conditions, institutional environments, and enterprise capability. This study contributes to enterprise development scholarship by strengthening debates on MSME resilience, inclusive finance, and entrepreneurial ecosystems in urban developing country contexts. It also highlights the need for integrated policy interventions that can enhance enterprise resilience, promote financial inclusion, and support sustainable local economic participation.

MSME growth; entrepreneurial ecosystems; enterprise resilience; inclusive finance; financial literacy; MSMEs; Zambia

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