Impact of Entrepreneurial Literacy on Sustainable Financial Growth of Small and Medium Enterprises (SMES) in Oyo State, Nigeria
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Date
2022-03-09
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OECONOMIA COPERNICANA
Abstract
Entrepreneurial literacy in the whole world is a boost to the requisite competences in the twenty-first century for the small and medium enterprises (SMEs), and enhancing sustainable and inclusive development. Entrepreneurial literacy is equipping an individual with the mindsets, abilities, and knowledge necessary to recognize a chance and help it expand in a sustainable manner. Due to the high failure rate of new businesses, sustainability is tough to attain, but it is gaining attention, especially since it was revealed that there is a distinct connection between entrepreneurial literacy and long-term financial development. Hence, the need to assess the impact of entrepreneurial literacy on sustainable financial growth in Small Medium Enterprises (SMEs) in Oyo state, Nigeria. This study was designed to examine the various forms of entrepreneurial literacy, challenges in achieving sustainable financial growth and the impact of entrepreneurial literacy on sustainable financial growth in SMEs.In conducting this study, quantitative analysis was employed to ascertain the impact of entrepreneurial literacy on sustainable financial growth in SMEs. Descriptive statistics and chi square were used to achieve the purpose of this study. Descriptive statistics was used to summarize the characteristics of respondents, various forms of entrepreneurial literacy and challenges in achieving sustainable financial growth. Chi-square analysis was used to assess the significant impact of entrepreneurial literacy on sustainable financial growth in SMEs and test the null hypotheses at 0.05 levels of significance for accepting or rejecting the hypothesis. The study revealed that a good number of the entrepreneurs had high perceived level of the different forms of entrepreneurial literacy which includes good leadership and entrepreneurship skills, refresher courses on marketing, growth strategy, innovation and innovation management, good financial management practices and so on. Also, majority of the entrepreneurs admitted to the challenges faced in achieving sustainable financial growth in SMEs such as insufficient savings, difficulty in getting partners, high interest rate associated with lending to SMEs by banks, poor record keeping and accounting system, inability to generate sufficient returns on investments to pay off principal & interest and so on which affects sustainable financial growth in SMEs. The study has proven that entrepreneurial literacy has significant impact on sustainable financial growth in SMEs. Therefore, this study established that the importance of entrepreneurship literacy in the advancement of the financial system in SMEs is undeniable
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Keywords
Entrepreneurial literacy, Financial growth, Small and medium enterprises,, SMEs, Sustainable