Effect of owner-manager’s financial literacy on the performance of SMEs in the Cape Coast Metropolis in Ghana-Reference-Cited by-同舟云学术

Effect of owner-manager’s financial literacy on the performance of SMEs in the Cape Coast Metropolis in Ghana

Published:2019-12 Issue:1 Volume:9 Page:
ISSN:2228-7566
Container-title:Journal of Global Entrepreneurship Research
language:en
Short-container-title:J Glob Entrepr Res

Author:

Agyapong Daniel^ORCID,Attram Albert Bampo

Abstract

AbstractFinancial 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.

Publisher

Springer Science and Business Media LLC

Subject

General Earth and Planetary Sciences,General Environmental Science

Link

http://link.springer.com/content/pdf/10.1186/s40497-019-0191-1.pdf

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