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|Title:||Financial Literacy and Small and Medium Enterprises Performance (SMEs) in Zimbabwe: A Case of Bulawayo Central Business District|
|Keywords:||Small and medium enterprises|
Gross Domestic Profit
|Publisher:||Lupane State University|
|Abstract:||Zimbabwe is a developing country and the SMEs (Small and medium enterprises) sector is the key driver of the Zimbabwean economy contributing to the nation’s GDP (Gross Domestic Profit) with a significant amount. However not all of them succeed in growing their enterprises to successful business. In fact, most of the new firms report to have failed within the first five years after commencing. Majority of Zimbabweans these days are striving to be entrepreneurs regardless of their educational backgrounds by engaging in various business activities ranging from farming to professional services such as Accounting firms and Law firms. Therefore, financial literacy is the most important element for the management skills and thriving of small firms. However, the exact influence that financial literacy has on financial performance on small firms has not been fully established by the available literature therefore there is need for further research in this area. This study pursued to establish the influence on financial performance of SMEs in Bulawayo, Zimbabwe. The study was conducted using a case study design. The study population involved SMEs in the city of Bulawayo and the representatives sample was selected using judgmental and convenience sampling technique. The research instruments included interviews and questionnaires which comprised of both open ended and closed ended questionnaires each addressing the study objectives. The data collected was analyzed using SPSS (Statistical Package for Social Sciences) and cross tabulation was used to search for different relationship between various variables. The SMEs were found to have generally some low level of financial literacy. Successful entrepreneurs however attained high level of financial literacy and showed an understanding of many financial literacy, most of them were those who did not attend financial literacy programmes. The study further found out that the concept of financial literacy has a significant positive influence on the financial performance of the firms. The results of the study showed that there is a significant positive relationship between financial literacy and financial performance of SMEs. From the results the study concluded that high level of financial literacy of SMEs led to higher financial literacy of SMEs led to higher financial literacy awareness to SMEs owners and they should guarantee that they will attend financial literacy programmes so as to increase the financial performance of their firms.|
|Appears in Collections:||Department of Accounting and Finance|
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