Financial literacy and growth of small medium enterprises in ghana: a case study of techiman municipality.
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Date
2023
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KNUST
Abstract
The prime objective of this study is to investigate the influence of financial literacy on the growth of smes. The study specifically employs a quantitative descriptive research strategy, with which it will gather quantifiable data for the population sample's statistical analysis. The population of the study includes smes in the Techiman Municipality. Smes in the services, manufacturing and trading sectors are used for the study. Since the population is large some of the smes are being sampled based on the Slovin formula. Therefore the sample size for the study is 140. In this investigation, a sample random sample method is utilised. To choose a sample, simple random sampling involves the use of randomly generated integers which is 140 for this study. The primary source of the data is collected in this study through questionnaires. Cronbach's alpha is used in SPSS to determine the validity of the research instrument. Based on the findings, this study draws the conclusion that, rather than bookkeeping and bookkeeping literacy, the level of debt management literacy has a significant impact on the growth of smes. The majority of smes typically use credit facilities before looking for information on debt management, and as a result, they frequently borrow money from both formal and informal sectors, which leads to debt accumulation. Additionally, it was shown that smes misuse money, which hinders their ability to expand. The majority of smes do not prepare the business annual budget, which results in business transactions being undertaken based on the current circumstances, which results in irrational spending, despite the fact that budgeting improves the coordination of various functions with the ultimate goal of meeting the agreed performance levels. It is recommended that it is essential to make a concerted effort to educate smes on budgeting techniques, how to create a budget, and how to maintain accurate bookkeeping in order to enable them to manage their enterprises with a view to fostering smes' growth.
Description
A thesis submitted to the department of accounting and finance, institute of distance learning, Kwame Nkrumah university of science and technology, in partial fulfilment of the requirements for the degree of master of science (accounting and finance)