Financial Inclusion and Women-Led Small and Medium Enterprises (SMEs) Performance during Covid-19 in Chipadze, Bindura Town

Abstract

Covid-19 containment measures disrupted the three financial inclusion dimensions of access, usage and quality, which affected women-led small and medium enterprises (SMEs) performance in many economies with no exception to Zimbabwe. However, the growth of small businesses depends mainly on the quality and accessibility of finance. This study examines the impact of financial inclusion on women-led SMEs performance in Bindura, Zimbabwe’s one of the mining towns during the Covid-19 era. A sample of 70 women-led businesses was selected, and data were analysed using a simple multivariate regression model. The results show a relatively low level of financial inclusion of women entrepreneurs in Bindura, having active formal bank accounts reflected by a percentage of 62.9. The study found that financial services were difficult to access, expensive and of poor quality during the Covid-19 era. Nonetheless, the study revealed significant positive effects between financial inclusion dimensions (accessibility, usage and quality) and entrepreneurial performance. Despite Covid-19 disruptions that made financial services challenging to access and of poor quality, financial inclusion was instrumental in enabling positive business performance. It is recommended that measures aimed at increasing the inclusivity of women-led businesses be fostered. These measures should be designed in a way that they make the services accessible and of good quality during the pandemic periods.