Financial Literacy and Financial Performance of Small and Medium Sized Enterprises in Kakoba Ward Mbarara City, Uganda

Amans Ainebyoona; Tuhirirwe Jackson; Nomugisha Mary

doi:10.36948/ijfmr.2024.v06i05.27519

Financial Literacy and Financial Performance of Small and Medium Sized Enterprises in Kakoba Ward Mbarara City, Uganda

Author(s)	Amans Ainebyoona, Tuhirirwe Jackson, Nomugisha Mary
Country	Uganda
Abstract	The financial performance of SMEs is a major concern for Uganda with high rates of solvency among these enterprises. Financial literacy has been identified as a one of the key competencies required for the establishing, management and thriving of SMEs. The study was guided by three objectives that include to analyze the effect of debt management literacy on the financial performance, to assess the effect of book keeping literacy on the financial performance of Small and Medium enterprises in Kakoba Division Mbarara City Southland to examine the effect of budgeting literacy on the financial performance of Small and Medium enterprises.. The researcher deployed across sectional survey design where a sample of 97 SMEs was selected using stratified random sampling technique. Responses were collected using a self-administered questionnaire that was comprised of Likert scaled questions. Data collected was analyzed using SPSS version 23.0 where regression analysis was performed to establish the effect between the variables. The study established that bookkeeping literacy (Adjusted R2=0.077, P-value = 0.015) and debt management Adjusted R2= 0.096, P-value =0.007) significantly and statistically affect and predict financial performance of SMEs. The study concludes that financial literacy significantly affects financial performance of SMEs and recommends that government and other development partners should institute financial literacy training programs and owners should follow separate ownership from business actives and therefore employ people with necessary knowledge to run their operation. The study further suggests that further research on other dimensions of financial literacy like savings, accountability, and investment so as to make a generalization of effect of financial literacy on the financial performance of SMEs
Keywords	Financial Literacy, Financial Performance, Small and Medium sized Enterprises
Field	Business Administration
Published In	Volume 6, Issue 5, September-October 2024
Published On	2024-09-22
Cite This	Financial Literacy and Financial Performance of Small and Medium Sized Enterprises in Kakoba Ward Mbarara City, Uganda - Amans Ainebyoona, Tuhirirwe Jackson, Nomugisha Mary - IJFMR Volume 6, Issue 5, September-October 2024. DOI 10.36948/ijfmr.2024.v06i05.27519
DOI	https://doi.org/10.36948/ijfmr.2024.v06i05.27519
Short DOI	https://doi.org/g4qmsg

View / Download PDF File

E-ISSN 2582-2160

doi

CrossRef DOI is assigned to each research paper published in our journal.

IJFMR DOI prefix is
10.36948/ijfmr

Downloads

Research Paper Format Copyright Permission Form and Undertaking Form Cover Page Vol 6 Isu 5 Cover Page Vol 6 Isu 4 Cover Page Vol 6 Isu 3

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9898-5948-55	editor@ijfmr.com

International Journal For Multidisciplinary Research

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Financial Literacy and Financial Performance of Small and Medium Sized Enterprises in Kakoba Ward Mbarara City, Uganda

Share this