Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261995 
Year of Publication: 
2019
Citation: 
[Journal:] Journal of Global Entrepreneurship Research [ISSN:] 2251-7316 [Volume:] 9 [Issue:] 67 [Publisher:] Springer [Place:] Heidelberg [Year:] 2019 [Pages:] 1-13
Publisher: 
Springer, Heidelberg
Abstract: 
Financial literacy enables owner-managers of SMEs to understand and assess their own financial needs and make rational financial decisions. The paper explores the financial literacy of owner-managers of SMEs in the Cape Coast Metropolis and how such literacy influences the performance of their businesses. The study population were owner-managers of registered SMEs in the Cape Coast Metropolis from the National Board for Small and Medium Enterprise, out of which a sample of 132 was selected through the simple random sampling technique. The data was analyzed using Structural Equation Model. The results showed a positive relationship between financial literacy and the firm's financial performance (t = 35.631, p < .00). The paper recommends that policy makers should specifically design a program and platform targeted at further enhancing the financial literacy level of these owner-managers to help improve the performance of their firms.
Subjects: 
Financial literacy
SME performance
Structural equation modeling
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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