DOI: 10.36347/sjebm.2017.v04i09.004

Pages: 618-625

Small and Medium Enterprises (SMEs) are the main source of economic growth in developing countries and contribute largely to employment creation (Kilonzo, 2011). One of the prerequisites for successful operation of SMEs is access to finance. The Lusaka Securities Exchange (LuSE) was developed in Zambia to enable companies raise relatively cheaper long term capital. In 2014, the stock market in Zambia came up with a market known as the LuSE Alternative Market. It was established to create a more enabling platform for small and medium enterprises. However, despite the formation of the Louis Alternative market, small and medium enterprises still prefer to obtain loans and external financing from banks to fund their businesses as compared to sourcing these finances from the capital market which in actual sense is more affordable than the banks. Since the launch of the LuSE Alternative Market in 2014, no SME has been listed. This paper therefore sought to assess the effect of access to information, the desire to maintain control, regulation and corporate governance have on the desire to list on the LuSE Alternative Market. This study adopted a descriptive survey and multiple regression was used ton analyse the data.