Analysing the Effectiveness of Financial Management in Indigenous Business: A Case study of the Hospitality Industry in Lusaka

Hospitality industry in Lusaka, encompassing lodging, dining, and event planning sectors, is heavily reliant on effective financial management to ensure sustainability and success. This study analyses the effectiveness of financial management of indigenous-owned hospitality businesses in Lusaka, highlighting their importance in achieving both economic viability and broader organizational goals, including cultural preservation and community development. The research employs a mixed-methods design, combining quantitative data from structured questionnaires and qualitative insights from semi-structured interviews with business owners and managers. Stratified random sampling ensures representation across various business sizes and types, with a target sample size of 70 businesses. Data analysis incorporates descriptive and inferential statistical techniques alongside thematic analysis to identify trends, relationships, and contextual factors influencing financial management practices. The study aims to assess the effectiveness of financial planning and management in indigenous business, examine the effectiveness of budgeting techniques and cost management in indigenous business and assess the financial literacy in indigenous business. Expected results include identifying effective strategies and areas for improvement, offering insights that can inform policy and support indigenous entrepreneurs in enhancing their financial management capabilities, ultimately contributing to the sustainability and growth of the hospitality sector in Lusaka. The findings are also expected to reveal how indigenous hospitality businesses balance financial objectives with cultural and community commitments, providing a nuanced perspective on how these enterprises contribute to social and economic development.