Effect of owner-manager's financial literacy on the performance of SMEs in the Cape Coast Metropolis in Ghana

Artikel

Financial literacy enables owner-managers of SMEs to understand and assess their own financial needs and make rational financial decisions. The paper explores the financial literacy of owner-managers of SMEs in the Cape Coast Metropolis and how such literacy influences the performance of their businesses. The study population were owner-managers of registered SMEs in the Cape Coast Metropolis from the National Board for Small and Medium Enterprise, out of which a sample of 132 was selected through the simple random sampling technique. The data was analyzed using Structural Equation Model. The results showed a positive relationship between financial literacy and the firm's financial performance (t = 35.631, p < .00). The paper recommends that policy makers should specifically design a program and platform targeted at further enhancing the financial literacy level of these owner-managers to help improve the performance of their firms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Global Entrepreneurship Research ; ISSN: 2251-7316 ; Volume: 9 ; Year: 2019 ; Issue: 67 ; Pages: 1-13 ; Heidelberg: Springer

Classification and Topics

• Classification: Management
• Subject: Financial literacy ; SME performance ; Structural equation modeling

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Agyapong, Daniel ; Attram, Albert Bampo
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2019

Further information

• DOI: doi:10.1186/s40497-019-0191-1
• Handle: http://hdl.handle.net/10419/261995
• Last update: 10.03.2025, 11:42 AM CET