| dc.description.abstract | The study assesses the effect of financial literacy on the small and medium enterprises in Ntinda
subcounty, Nakawa division. The main objective of the study was to assess how financial
literacy affects the performance of small and medium enterprises. Financial literacy was varied
in terms of risk management, budgeting and financial record keeping where as the performance
of small and medium enterprises was varied in terms of growth and efficiency. The researcher
used a survey research design involving a qualitative and quantitative approach and a simple
random sampling technique where samples were randomly selected from a sample of 56
respondents; data was collected by use of interviews and questionnaires. The collected data was
analyzed using SPSS version 16.0 for questionnaires, while categorization was used for
interviews. The findings of the study indicated that financial literacy determines efficiency in
management of budgets, risk control and acquire financial record keeping skills that will
eventually enhance the performance of the business. This makes financial literacy critical to
SME performance. In conclusion, financial literacy has a positive influence on the performance
of small and medium enterprises. The study concludes that financial literacy enhances
knowledge on effective management of budgets, minimization of risks and maintenance of
financial records.
The study recommends that financial literacy should be improved by focusing on aspects such as
budget management, financial record keeping hence increasing the growth and efficiency of
business operations. | en_US |
