A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State

Project and Seminar Material for Accountancy / Accounting

A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State


Chapter One


Introduction

1.1 Background Of The Study

Small and medium enterprises (SMEs) are the primary drivers of economic growth and job creation, and they play a critical role not only in established but also in developing and emerging economies (Lockea,2012). In most nations, SMEs face challenges in obtaining financing, utilizing technology, having limited management competencies, low productivity, and dealing with regulatory constraints.

According to the Capital Market Authority (2010), SME’s account for more than 99 percent of all businesses worldwide. Small and medium-sized enterprises (SMEs) play an important role in the Kenyan economy, such as job creation, but they face a number of challenges, including financial setbacks, discrimination, issues with government regulation, tax and government levies, poor access to justice, and a lack of education, to name a few. The economic pillar of the Vision 2030 project intends to promote the well-being of all Kenyans through an economic development program that spans all of the country’s regions and aspires to attain an annual GDP growth rate of 10% starting in 2010. It targets tourism, agriculture, wholesale and retail trade, manufacturing, business process outsourcing (BPO), and financial services, with an emphasis on pushing the economy up the value chain. In Kenya, SMEs confront obstacles that prevent them from achieving economies of scale. They lack the necessary training and management skills to properly manage the company’s resources. As a result, financial literacy is seen as one of the tactics utilized by bankers to give the information and skills needed to shift attitudes and attract more prospective agents.

Despite these obstacles, SMEs have the potential to generate economic growth by creating new employment, expanding the tax base, and driving innovation. According to Wanjohi (2011), SMEs boost competitiveness and entrepreneurship, which has a positive impact on overall economic efficiency, innovation, and productivity. They are the principal means through which new entrepreneurs provide the economy with ideas, skills, and innovations on a constant basis. According to Normah (2007), a tight link exists between the concentration of SMEs and the dominating economic activity. Small and medium-sized businesses (SMEs) dominate global economies in terms of employment and number of businesses, yet their full potential remains largely untapped (Atsede et al., 2008).


1.2 Statement Of The Problem

Remote areas and villages have started their own companies. Animal husbandry, greenhouse farming, dairy framing, fishing, and other local farming operations are examples of family enterprises. These firms are run in a very domestic and local way, with the owners not considering how to increase their investment. These businesses are not long-term and are subject to changes in the environment and politics. Despite the efforts of national and international organizations and government agencies to assist small businesses, small and medium-sized companies (SMEs) can not exist without their own efficient and effective business and financial management. Most businesses fail early on or never expand, owing to the fact that maintaining a firm necessitates financial management expertise.

Despite their importance, SMEs have a variety of problems, one of which is a lack of financial information and company records. Lack of sufficient business skills, according to Wanjohi (2011), is a key problem in the creation and expansion of SMEs. This is mostly due to a lack of appropriate information and company records, as well as low levels of knowledge. The CMA (2010) also found that SMEs have restrictions that reduce their risk resilience and prohibit them from expanding and achieving economies of scale. Internal and external factors both limit access to financial data. As a result, they struggle to meet their goals in terms of liquidity, long-term solvency, and profitability, resulting in missed business opportunities and a failure to expand in terms of size and financial resources (Badagawa, 2008). A study of the financial literacy of SMEs in emerging and wealthy nations reveals a mixed picture. In a study of national surveys performed in numerous African nations, Liedholm and Mead (2005) estimate that between 17 and 27 percent of the working population engaged in SMEs is financially literate, which is roughly double the employment of large businesses and the public sector. According to a review of the literature in this field, there is a considerable gap in understanding of the implications of financial literacy on SME’s performance. As a result, this research was conducted.


1.3 Objective Of The Study Objective

The overall goal of the research is to critically investigate the financial literacy and its impact on small scale businesses performance. Specifically, the study is set to;

  1. Investigate the role of financial literacy on the development of SMEs.
  2. Investigate if financial literacy positively contribute to the performance of SMES
  3. To investigate factors influencing the use of financial literacy by SMEs.

1.4 Research Questions

The following research questions guide the objective of the study.

  1. What are the role of financial literacy on the development of SMEs?
  2. Does financial literacy positively contribute to the performance of SMES?
  3. What are the factors influencing the use of financial literacy by SMEs owners?

1.5 Significance Of The Study

The study’s goal is to discover and investigate the link between financial literacy and company performance and profitability in small and medium businesses (SMEs). This research will aid the government and the international community in better understanding the variables that influence the development and viability of the private sector in Nigeria. The findings of the study will also assist the private sector in determining which elements are crucial to their company’s profitability. This study will contribute to the existing body of knowledge on the issue and will serve as a resource for academics, researchers, and students interested in undertaking future research on this or a related topic.


1.6 Scope Of The Study

The study covers the impact of financial literacy on small and medium-sized businesses in Rivers state. Hence, enrolled participants for this study will be obtained from selected SMEs in Mile2, Port-Harcourt Rivers State.


1.7 Limitation Of Study

The lack of willingness of small business owners to complete the questionnaire is a key drawback of this study.


1.8 Definition Of Terms

Financial Literacy:

Financial literacy is the possession of a set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.

Small Scale Businesses:

A small-scale business is a privately owned and operated business, characterized by a small number of employees and low turnover.:

Performance:

The extent to which an investment is profitable, especially in relation to other investments.


Chapter Two


Literature Review

Introduction

Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and, furthermore, recognize the efforts of scholars who have previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.


A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State


Project Material Download

3,000 Naira


The complete material will be sent to you in just 2 steps.

Quick & Simple…


Step One Purchase

Make payment of ₦3,000: through USSD Transfer, Bank Mobile App, ATM Transfer, or POS Transfer to:

Access Bank Plc Account No.: 0811003731
Name: Samphina Academy
Account Type: Current

Or Click Here to pay with Debit Card

FOR CLIENTS OUTSIDE NIGERIA:

Click Here to pay with Debit Card ($15)


Step Two Purchase

Send the following details through Text Message or WhatsApp Messenger | 08143831497

  • Payment Details 
  • Email Address 
  • A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State

The complete material will be sent to your email address after receiving your payment information | Terms and Conditions Apply


You may also like:


⚠️ Need a different topic? Perform a quick search


Follow us on Facebook                       Contact Our Help Desk

Follow us on Facebook

 Contact Our Help Desk



Want a discount?
Become a partner and you can always buy at a lower price

samphina.com.ng


You can leverage this opportunity and maximize your profit:

  1. If you are a student that needs a side income.
  2. If you own a business center near school (top notch)
  3. If you are a final year student
  4. If you are a course representative in your school
  5. If you assist students in getting research materials (top notch)

Click Here for More Details


A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State

Disclaimer

This research material “A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.

The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.

samphina.com.ng is only providing this material “A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.


How to defend your research work

This is a general guide on how to defend your research work:

1. Prepare For Questions:

If you are preparing for questions that may be asked during your defense, then your answers will flow smoothly and effectively. This will prove your knowledge on the subject e.g “A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State“, and strengthening your argument. Ask friends and family, read your work for them to listen to your presentation, and write down questions. You may be lucky the panel will ask you those you have already prepared on.

2. Strong Summary:

Summarizing your chapters will help keep your audience focused because it is easy for a mind to drift, so providing summaries will ensure your panel will follow along, even if they lose focus for a brief moment. Visual aides, such as graphs and power-point presentations can be very helpful. If you are going to use these, make sure you will practice your presentation with them.

3. Be Confident in Your Research Work:

Not knowing your topic “A Critical Investigation Of Financial Literacy And Its Impact On Small Scale Businesses Performance In Port Harcourt, Rivers State” inside out will cause you to struggle and ultimately fail with your defense. You need to know the subject from every angle to ensure you are fully prepared for any question that may come your way.

4. Conclusion:

Reinforce your findings to conclude your defense. The finale of your presentation should focus on proving the work that has been done. You may need to recap on what has changed and remained unchanged, if is necessary.

5 . Listen:

Before you get defensive or recite a particular answer, make sure you truly understand the question being asked. Being a good listener is an important quality, because providing an inaccurate or off-topic answer will also weaken the validity of your paper.

Samphina Academy

Samphina Academy is an Online Educational Resources Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.