Financial literacy among owner-managers of small and medium-sized enterprises in Sekondi-Takoradi Metropolis

Abstract

The low level of financial literacy among owners of SMEs is detrimental to the collapse of many SMEs in Ghana. As at 2015 about 46% of SMEs failed to exist and this was attributed to the low level of financial literacy among the owner- managers of the SMEs. The purpose of this research is to examine the financial literacy among owner-managers in small and medium-sized enterprises in the Sekondi-Takoradi Metropolis. The study used correlational research design with quantitative research approach. With this the t-test, and correlation analysis were performed to investigate the relationship between gender, age, educational level and financial literacy. The study used primary data from a sample of 375 of which 368 valid responses were obtained. The study concluded that gender, age and educational level of the owners of the SMEs have some relationship with their financial literacy. There was no significant relationship between gender and financial literacy. However, there was a moderate positive and significant relationship between age, educational level and financial literacy among the owner-managers of the SMEs. It was recommended that, the owners of the SMEs should focus on furthering their education on financial aspects, since it was noted that high level of education have significant and positive relationship with financial literacy level.