An assessment of the effects of Financial Literacy on the Growth and Expansion of Rural Micro-agribusiness Enterprises in Zambia: A case study of Mpongwe District.

Clairs Chileshe; Joshua Munkombwe

doi:10.36948/ijfmr.2026.v08i02.70320

An assessment of the effects of Financial Literacy on the Growth and Expansion of Rural Micro-agribusiness Enterprises in Zambia: A case study of Mpongwe District.

Author(s)	Mr. Clairs Chileshe, Dr. Joshua Munkombwe
Country	Zambia
Abstract	This study examined the effect of financial literacy on the growth, expansion, and sustainability of rural micro-agribusiness enterprises in Mpongwe District, Zambia. The study was motivated by persistent underperformance and high failure rates among rural agribusiness microenterprises despite their importance to rural livelihoods, food security, and national economic development. While policy interventions have prioritised access to inputs and markets, limited attention has been given to financial literacy as a core enterprise capability. Anchored in the Resource-Based View, Sustainable Growth Theory, and the Theory of Change, the study assessed financial literacy levels, their determinants, and their application to enterprise growth outcomes. A cross-sectional mixed-methods design was adopted. Quantitative data were collected from 100 micro-agribusiness entrepreneurs using structured questionnaires and analysed using SPSS (version 25), applying Pearson correlation, multiple regression, and independent samples t-tests. Instrument reliability was confirmed (Cronbach’s Alpha = 0.821). Qualitative data from five key informant interviews were analysed thematically. The findings revealed generally low financial literacy levels, particularly in budgeting, recordkeeping, credit evaluation, and financial planning. Financial literacy was positively associated with business growth (r = 0.42, p = 0.00008) and sustainability (r = 0.51, p < 0.00001). Regression analysis confirmed that financial literacy significantly predicted business growth (β = 0.38, p = 0.00005), while education, training, and gender significantly influenced literacy levels. The study concluded that financial literacy is a decisive internal capability enabling both horizontal and vertical enterprise growth when practically applied. It recommends integrating applied, gender-sensitive financial literacy into agribusiness support programmes and calls for further research on digital financial inclusion in rural contexts.
Keywords	Financial literacy; Micro-agribusiness enterprises; Business growth and expansion.
Field	Business Administration
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-03-25
DOI	https://doi.org/10.36948/ijfmr.2026.v08i02.70320

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An assessment of the effects of Financial Literacy on the Growth and Expansion of Rural Micro-agribusiness Enterprises in Zambia: A case study of Mpongwe District.

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