An Assessment On The Impact Of Financial Literacy On The Performance Of Small And Medium-Sized Enterprises In Zimbabwe
- Author
- Lindsay Wadzanayi Mutsvangwa
- Title
- An Assessment On The Impact Of Financial Literacy On The Performance Of Small And Medium-Sized Enterprises In Zimbabwe
- Abstract
- The research study’s aim was to assess the impact of financial literacy on the performance of Small and Medium Enterprises (SMEs) in Zimbabwe, with a specific focus on SMEs in Mashonaland Central Province. The study employed a survey research design, comprising qualitative datacollection method. The sample size consisted of 100 SMEs, selected using purposive sampling techniques. Data was collected through a survey questionnaire and semi-structured interviews with SME owners and managers. The survey questionnaire was designed to capture information on financial literacy, business performance, and other relevant variables. The interviews were conducted to gain deeper insights into the financial literacy practices of SMEs and their impact on business performance. This study relied on original data collected directly from a variety of actors within key industries of Zimbabwe's SME sector. SPSS Statistics Version 21 software was used to analyze the data. This included reliability tests (using Cronbach's Alpha), correlation analysis, and regression analysis. The analysis produced descriptive statistics like frequencies and percentages, which were then used to compare the variables in the model through multiple linear regression. The study found that financial literacy has a significant positive impact on the performance of SMEs in Mashonaland Central Province. SMEs with higher levels of financial literacy tend to have better financial management practices, which in turn leads to improved business performance. The study also found that access to financial literacy training programs is limited in the province, highlighting the need for government and other stakeholders to invest in financial literacy programs for SMEs. It was also concluded that there are other factors that impact on business performance such as the internal and external factors to business.Overall, the study suggests that financial literacy is an important factor in enhancing the performance of SMEs in Zimbabwe. Therefore, efforts should be made to increase access to financial literacy training programs for SMEs, particularly in rural areas where access to such programs is limited.
- Date
- June 2024
- Publisher
- BUSE
- Keywords
- Financial literacy
- Performance
- Small
- Supervisor
- N/A
- Item sets
- Department of Banking and Finance
