Financial literacy and business performance among female micro-entrepreneurs
The poor performance of female entrepreneurs, exemplified in their inability to realize their full potential and compete fairly with their male counterparts owing to financial illiteracy, motivated this study. Therefore, this study examined the effect of financial literacy on business performance am...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2022-02-01
|
| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/16164/IMFI_2022_01_Tumba.pdf |
| _version_ | 1818258771232686080 |
|---|---|
| author | Ndaghu Julius Tumba Vincent A. Onodugo Ekom Etim Akpan Gbenga Festus Babarinde |
| author_facet | Ndaghu Julius Tumba Vincent A. Onodugo Ekom Etim Akpan Gbenga Festus Babarinde |
| author_sort | Ndaghu Julius Tumba |
| collection | DOAJ |
| description | The poor performance of female entrepreneurs, exemplified in their inability to realize their full potential and compete fairly with their male counterparts owing to financial illiteracy, motivated this study. Therefore, this study examined the effect of financial literacy on business performance among female micro-entrepreneurs. Using the survey research design, data were collected from 247 female entrepreneurs from six states in the North-Eastern region of Nigeria. The hypotheses developed for the study were tested using path modeling-structural equation modeling with the aid of SmartPLS software version 3.2.7. The result revealed that all proxies of financial literacy (financial education, cash forecasting, and bookkeeping have significant effects on business performance of female entrepreneurs. Additionally, the paper revealed that financial education contributed more to the variance in business performance of the female micro-entrepreneurs, this was followed by bookkeeping practices, while cash-forecasting has the least effect on the variance in business performance. This implies that financial education is essential for the success of female micro-entrepreneurs. Thus, this study advocates the need for continuing trainings and workshops for female micro-entrepreneurs on financial concepts such as bookkeeping, cash forecasting, and market volatilities. |
| first_indexed | 2024-12-12T18:04:50Z |
| format | Article |
| id | doaj.art-d8d6768d65cf4ed0b3d7bd8b41f13340 |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-12-12T18:04:50Z |
| publishDate | 2022-02-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-d8d6768d65cf4ed0b3d7bd8b41f133402022-12-22T00:16:31ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582022-02-0119115616710.21511/imfi.19(1).2022.1216164Financial literacy and business performance among female micro-entrepreneursNdaghu Julius Tumba0https://orcid.org/0000-0002-2253-7576Vincent A. Onodugo1https://orcid.org/0000-0001-5457-8586Ekom Etim Akpan2https://orcid.org/0000-0002-5501-0180Gbenga Festus Babarinde3https://orcid.org/0000-0002-5613-9883Ph.D. Student/ Lecturer, Business Administration Faculty, Department of Management, University of Nigeria; Management and Information Technology Faculty, Department of Banking and Finance, Modibbo Adama University, YolaProfessor/Dean, Business Administration Faculty, Department of Management, University of NigeriaPh.D. Student, Business Administration Faculty, Department of Management, University of Nigeria, NsukkaLecturer, Management and Information Technology Faculty, Department of Banking and Finance, Modibbo Adama University, YolaThe poor performance of female entrepreneurs, exemplified in their inability to realize their full potential and compete fairly with their male counterparts owing to financial illiteracy, motivated this study. Therefore, this study examined the effect of financial literacy on business performance among female micro-entrepreneurs. Using the survey research design, data were collected from 247 female entrepreneurs from six states in the North-Eastern region of Nigeria. The hypotheses developed for the study were tested using path modeling-structural equation modeling with the aid of SmartPLS software version 3.2.7. The result revealed that all proxies of financial literacy (financial education, cash forecasting, and bookkeeping have significant effects on business performance of female entrepreneurs. Additionally, the paper revealed that financial education contributed more to the variance in business performance of the female micro-entrepreneurs, this was followed by bookkeeping practices, while cash-forecasting has the least effect on the variance in business performance. This implies that financial education is essential for the success of female micro-entrepreneurs. Thus, this study advocates the need for continuing trainings and workshops for female micro-entrepreneurs on financial concepts such as bookkeeping, cash forecasting, and market volatilities.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/16164/IMFI_2022_01_Tumba.pdfbookkeepingcash forecastingentrepreneurshipfinancial educationsmall and medium enterprises |
| spellingShingle | Ndaghu Julius Tumba Vincent A. Onodugo Ekom Etim Akpan Gbenga Festus Babarinde Financial literacy and business performance among female micro-entrepreneurs Investment Management & Financial Innovations bookkeeping cash forecasting entrepreneurship financial education small and medium enterprises |
| title | Financial literacy and business performance among female micro-entrepreneurs |
| title_full | Financial literacy and business performance among female micro-entrepreneurs |
| title_fullStr | Financial literacy and business performance among female micro-entrepreneurs |
| title_full_unstemmed | Financial literacy and business performance among female micro-entrepreneurs |
| title_short | Financial literacy and business performance among female micro-entrepreneurs |
| title_sort | financial literacy and business performance among female micro entrepreneurs |
| topic | bookkeeping cash forecasting entrepreneurship financial education small and medium enterprises |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/16164/IMFI_2022_01_Tumba.pdf |
| work_keys_str_mv | AT ndaghujuliustumba financialliteracyandbusinessperformanceamongfemalemicroentrepreneurs AT vincentaonodugo financialliteracyandbusinessperformanceamongfemalemicroentrepreneurs AT ekometimakpan financialliteracyandbusinessperformanceamongfemalemicroentrepreneurs AT gbengafestusbabarinde financialliteracyandbusinessperformanceamongfemalemicroentrepreneurs |