Financial Literacy And Performance Of Small And Medium-Sized Enterprises In The Accra Metropolis

Abstract

Research into financial literacy and how it influences the growth and profitability of SMEs has shown that owner inadequate financial knowledge has caused a large number of businesses to fail around the world. The goal of this study was to find out how managers' financial literacy affect the performance of SMEs in the Accra Metropolis, Ghana. In line with the positivist paradigm, the study used an explanatory design. A questionnaire was given to 306 SMEs to get information from them. Using descriptive statistics and inferential statistics, the collected data were analysed with the help of the SPSS (version 26) software. The study found that the owners of SMEs in Accra Metropolitan Assembly have a high level of financial literacy. Also, both knowing about money and having a good attitude about it have a big positive effect on how well SMEs do financially. Even so, financial knowledge does not have much of an effect on how well SMEs do financially. Also, the way SME owners handle their money does not harm their businesses very much. So, it is a good idea to help SME owners who do not know much about money learn more about it. By doing this, these SME owners can improve their knowledge of money and learn how to run their businesses well, which will help them be successful. Also, it is very important to help SME owners develop good financial habits.