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.
