The impact of financial literacy on risk propensity mediated by access to finance (original) (raw)

Pressacademia

Abstract

Purpose – Financial literacy has become an important area of research in recent years. Its significance in making wise financial choices has also been documented in recent studies. In developing economies, business sustainability is a major issue as has been identified in many prior studies. Most SMEs are unable to survive 3 years after establishment. Prior researchers have mostly attributed this to a lack of access to finance. Recently, it has been discovered that financial literacy tends to assist SMEs with the needed skills and knowledge such as understanding the various sources of finance and analyzing different financial choices accurately, in order to be able to make the right financial choices. This study hence examines the impact of financial literacy on risk propensity mediated by access to finance. Methodology – Data for the study was collected from SME owners/managers through structured questionnaires. The questionnaires were administered to 432 SME owners/managers. Descr...

david awadzie hasn't uploaded this paper.

Let david know you want this paper to be uploaded.

Ask for this paper to be uploaded.