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 epidemic, is closely associated with their level of financial inclusion. This empirical study examines the degree and effectiveness of financial inclusion for MSMEs in Olympia Market, Lusaka, Zambia, following the COVID-19 pandemic, utilising Financial Inclusion Theory, Resource-Based Theory, and the MSME Sector Development Model. A mixed-methods study methodology was utilised to collect data from 45 formally registered firms through structured questionnaires and semi-structured interviews. The results indicate significant financial exclusion, as 88.9% of MSMEs reported a lack of access to financial assistance during or following the epidemic. Among the minority that obtained money, 73.2% utilised informal mechanisms like village banking, highlighting systemic inadequacies in formal financial structures. Government-funded financial aid was predominantly unattainable because of bureaucratic stagnation and insufficient public awareness. Key obstacles to financial access comprised restricted loan availability, exorbitant interest rates, and burdensome collateral stipulations. Regulatory and technological barriers, along with inadequate financial literacy, further limited participation in formal financial systems. The Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique found credit inaccessibility as the primary factor contributing to financial marginalisation. Conversely, entrepreneurial diversification—especially when enhanced by digital platforms such as social media marketing—has become a crucial adaptive approach. The report advocates for the recalibration of financial services to be responsive to MSMEs by diminishing collateral requirements and simplifying access procedures. It additionally advocates for the incorporation of informal financial networks into national financial institutions and the improvement of digital infrastructure, coupled with comprehensive financial literacy programs. Future study should examine novel financial mechanisms that can bridge the formal-informal gap to promote inclusive financial ecosystems supporting MSME resilience in Zambia.