The effects of financial literacy on the performance of carpentry manufacturing SMEs. A case study of Glenview Complex Area 8.
- Author
- Murimi, Tendai
- Title
- The effects of financial literacy on the performance of carpentry manufacturing SMEs. A case study of Glenview Complex Area 8.
- Abstract
- The purpose of the study was to determine the effects of financial literacy on the performance of carpentry manufacturing SMEs in Glenview Complex Area 8. The study also aimed at ascertaining the financial literacy skills required in carpentry manufacturing SMEs and to establish ways of promoting financial literacy in carpentry manufacturing SMEs. Descriptive research design was implemented in this research whilst random and stratified sampling methods were used to obtain the sample size which constituted 140 SMEs from a total population of 400 SMEs. Structured questionnaires and interviews were used in conjunction as part of a mixed methodology to gather data. Descriptive and inferential statistics were performed using SPSS and Excel, respectively. It was discovered that SMEs perform better when their owners are financially literate. It was also shown that in order to improve their odds of survival, budgeting and financial data analysis skills are necessary. Finally, it was discovered that promoting financial literacy in SMEs involves providing fundamental business skills training, utilizing technology, evaluating financial performance against other SMEs, and attending basic accounting courses. According to the study's findings, financial literacy and the success of SMEs are positively correlated. The study came to the conclusion that SMEs should invest in initiatives to advance financial literacy as well as obtain financial literacy skills that are tailor made for SMEs as skills applicable to large organizations may not be applicable to SMEs. The researcher suggests doing a study on the role of the government in promoting financial literacy in SMEs across all industries.
- Date
- 2023
- Publisher
- BUSE
- Keywords
- SMEs
- Financial literacy
- Performance
- Supervisor
- N/A
- Item sets
- Department of Accountancy