ABSTRACT
The research study was an evaluation of financial literacy’s impact on business
performance, the Zimbabwean SMEs experience. The study was based on a survey of
SME businesses across Zimbabwe who were reached for responses through structured
questionnaires and interviews. The researcher used both primary and secondary data
sources from a sample of 300 respondents. The sample was chosen from various value
chain players across industries dominating the Zimbabwean SME landscape. The data
collected were analysed using the SPSS Statistics Version 21 application to conduct the
reliability tests (Cronbach Alpha), correlation and regression analysis which produced
descriptive statistics such as frequencies, simple percentages out of which the
comparatives between the variables of the model were tested using multiple linear
regression analysis. Testing the firsts to third hypotheses, at 5 % level of significance,
the p-values (0.0005) were all lower than the significance level and concluded that at
the 95% significant level financial literacy impacts business performance of SMEs to a
greater extent. For all the hypotheses tested the null hypothesis was accepted and the
alternative hypotheses rejected. After testing the second hypothesis, it was concluded
that financial literacy is highly and positively correlated with business performance.
The probability value of the regression analysis was used to test the third hypothesis at
the same level of significance and since the p-value was also lower than the significance
level, it was concluded that there are other factors that impact on business performance
such as the internal and external factors to business. Overally it was therefore concluded
that financial literacy level impacts highly on business performance of SMEs and
among key recommendations is that governments prioritise literacy training of SMEs
as they are critical to economic growth. The study also recommended that future studies
look at other aspects such as the impact that external factors have on SME business
performance
NYARUSANGA, L (2021). Evaluating Financial Literacy Impact On Business Performance, The Zimbabwean Smes Experience. Afribary. Retrieved from https://tracking.afribary.com/works/evaluating-financial-literacy-impact-on-business-performance-the-zimbabwean-smes-experience
NYARUSANGA, LAZARUS "Evaluating Financial Literacy Impact On Business Performance, The Zimbabwean Smes Experience" Afribary. Afribary, 04 May. 2021, https://tracking.afribary.com/works/evaluating-financial-literacy-impact-on-business-performance-the-zimbabwean-smes-experience. Accessed 25 Nov. 2024.
NYARUSANGA, LAZARUS . "Evaluating Financial Literacy Impact On Business Performance, The Zimbabwean Smes Experience". Afribary, Afribary, 04 May. 2021. Web. 25 Nov. 2024. < https://tracking.afribary.com/works/evaluating-financial-literacy-impact-on-business-performance-the-zimbabwean-smes-experience >.
NYARUSANGA, LAZARUS . "Evaluating Financial Literacy Impact On Business Performance, The Zimbabwean Smes Experience" Afribary (2021). Accessed November 25, 2024. https://tracking.afribary.com/works/evaluating-financial-literacy-impact-on-business-performance-the-zimbabwean-smes-experience