The Influence of Financial Inclusion, Financial Literacy and Financial Behavior on Company Performance in MSMEs in Makassar City (original) (raw)
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International Journal of Science:Basic and applied research , 2019
Financial literacy is seen as an important instrument for the success of medium and small businesses, since it helps to understand and evaluate the information needed to make daily decisions that have financial impacts in companies" day-today management. Therefore, the goal of this research is twofold: to assess the financial literacy levels of small business owners (medium and small enterprises) in the Hossana Town and to analyze the relation between these results and the operating performance of those companies, as a measure of business economic performance. The study tests the hypothesis that, all other factors being constant, a higher financial literacy level of small business owners should motivate a better performance of the company. The sample in this study is composed by medium and small businesses of the Hossana town in the three sub cities, and through questionnaires it was obtained the data needed to gauge the levels of financial literacy. The results evidence a rather level of financial literacy among small business owners. And, the data also supports the existence of a significant positive correlation between financial literacy levels and companies" operating performance. This result highlights the importance of providing to small business owner adequate financial education on the expectation of improving their performance as business leaders.
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Abstract This study investigates the effect of financial inclusion on the performance of micro, small and medium size enterprises in Kankia Local Government of Katsina state. The population of the study comprise all the micro small and medium size enterprises operating in Kankia out of which 337 were selected as the sample size of the study. Multiple regression technique of data analysis was employed as a technique of data analysis. The findings of the study indicates that automated teller machine, mobile money, savings and credit facilities have a positive and significant effect on the performance of micro, small and medium size enterprises operating in Kankia metropolitan. Based on the findings of the study, the research therefore recommended that: the owners as well as managers of micro, small and medium size enterprises in Kankia should embrace frequent usage of ATM, save part of their profit, use their mobile phones to transact and access and patronize different credit facilities packages as they were found playing prominent role in improving the performance of micro, small and medium size enterprises.
Texila International Journal of Management, 2019
This study sought to evaluate the Effects of Financial Literacy on the financial Performance of small-scale Enterprises. Financial. The findings of this study would benefit the government and other stakeholders in knowing whether the gains of the financial literacy training can outweigh the costs of undertaking the training. This study adopted a descriptive survey design. The target population for this study is all the small-scale enterprises at the makola market which was 6034 traders. The target sample was 100 and since this is a descriptive study, Simple random sampling is more appropriate as it gives all items in a population an equal chance of being selected. Primary data was gathered by use of structured questionnaires which was both open and close-ended questions. Data gathered from the questionnaires was analyzed quantitatively using statistical package for social sciences (SPSS) computer software. SPSS generated both descriptive and inferential statistics. Descriptive statistics including the mean and standard deviation was used to capture the characteristics of the variables under study. Inferential statistics was used to analyze the relationship of the independent variable and the dependent variables. The study established that there was positive correlation between the dependent variable (financial performance) and the Independent Variables (financial literacy). Financial literacy also affected the savings and behavior of small-scale enterprise owners at makola market while savings behavior and attitude do not have effect on financial performance which means that the performance of traders at makola market is not determined by their savings behavior.
Jurnal Pengurusan UKM Journal of Management, 2020
This research analyzes the effect of Financial Literacy, Rational Financing Decision, Financial Capital, and SME Financial Performance. A survey approach is used for data collection from a sample of financed SMEs in Makassar City. Using the cluster method technique and stratified random sampling, 279 samples are obtained and analyzed with Structural Equation Modeling with the AMOS Software. The results show that Financial Literacy significantly affects Rational Financing Decision and Financial Capital. Rational Financing Decision significantly affects Financial Capital. Furthermore, Financial Literacy and Capital significantly affects performance. Moreover, Rational Financing Decision does not significantly affect Financial Performance. The study shows that Financial Capital is not a Moderator variable in explaining the relationship between Financial Literacy and Rational Financing Decision with Financial Performance. This research implies that financial institutions should be caref...
2019
Micro, Small and Medium Enterprises (MSMEs) are being looked upon by an economy as the drivers for its growth, sustainability and development. They play a critical role towards a country’s employment generation, exports and empowerment. However, they face a number of problems, such as, absence of adequate and timely banking finance, limited capital and knowledge, non-availability of suitable technology and low production capacity amongst others. Financial inclusion is the process of providing financial services to the weaker and disadvantaged sections of the economy. It thus becomes imperative to study the concept of financial inclusion with respect to MSMEs, since MSMEs could be considered as the weaker segment as compared to their larger counterparts. Objectives: The objective of this research is to ascertain the relationship between financial growth stages of MSMEs and financial inclusion. The research also seeks to examine the relationship between financial literacy amongst MSME...
Effect of Financial Literacy on the Growth of MSMEs
International journal of research publications, 2021
This study assessed the effect of financial literacy on the growth of micro, small and medium enterprises (MSMEs) in Murg shopping mall, Abuja, Nigeria. The study utilised a descriptive survey research design wherein survey research instruments were employed. The study was carried out using a primary source in which qualitative data were collected using structured questionnaires and converted to quantitative data using five-point Likert scaling. An aggregate of 208 data collection instruments was administered, of which, 200 were properly filled and returned; representing a 96.1% returned rate. The data was then analysed with the application of inferential statistics like Regression and Analysis of Variance. Arising from the result, the null hypothesis was rejected since the calculated value was greater than the critical value (107.666>2.42). In conclusion, there was a significant effect of financial literacy on the growth of MSMEs in Murg Shopping Mall, Abuja. However, of the four proxies of financial literacy tested, debt management literacy had the highest positive impact on MSMEs' growth, followed by bookkeeping literacy and banking services literacy, whereas budgeting literacy was insignificant. It was therefore recommended that entities who wish to carry out effective corporate social responsibilities to grow MSMEs, should train them in the aspects of debt management literacy, banking services literacy and bookkeeping literacy.