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Effect of owner-manager’s financial literacy on the performance of SMEs in the Cape Coast Metropolis in Ghana

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  • Daniel Agyapong

    (University of Cape Coast)

  • Albert Bampo Attram

    (University of Education)

Abstract

Financial literacy enables owner-managers of SMEs to understand and assess their own financial needs and make rational financial decisions. The paper explores the financial literacy of owner-managers of SMEs in the Cape Coast Metropolis and how such literacy influences the performance of their businesses. The study population were owner-managers of registered SMEs in the Cape Coast Metropolis from the National Board for Small and Medium Enterprise, out of which a sample of 132 was selected through the simple random sampling technique. The data was analyzed using Structural Equation Model. The results showed a positive relationship between financial literacy and the firm’s financial performance (t = 35.631, p

Suggested Citation

  • Daniel Agyapong & Albert Bampo Attram, 2019. "Effect of owner-manager’s financial literacy on the performance of SMEs in the Cape Coast Metropolis in Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-13, December.
    • Handle: RePEc:spr:jglont:v:9:y:2019:i:1:d:10.1186_s40497-019-0191-1
    DOI: 10.1186/s40497-019-0191-1
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    Cited by:

    1. Christian Hagin & Livingstone Divine Caesar, 2021. "The antecedents of success among small- and medium-sized enterprises: evidence from Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 279-297, December.
    2. Ebrahim Endris & Andualem Kassegn, 2023. "Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia," SAGE Open, , vol. 13(2), pages 21582440231, May.
    3. Ngibu Ann Waithera & Dr. Jennifer Wangari & Dr. Mariah Ngutu, 2023. "Financial Management Skills and Performance of Youth Economic Empowerment Projects in Kajiado North Sub County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 979-987, September.
    4. Nusrat Hafiz & Ahmad Shaharudin Abdul Latiff & Md Asadul Islam & Abu Naser Mohammad Saif & Sazali Abd Wahab, 2022. "Towards the Underlying Theories of Small Firm Growth: A Literature Review," FIIB Business Review, , vol. 11(1), pages 36-51, March.
    5. Román Culebro-Martínez & Elena Moreno-García & Sergio Hernández-Mejía, 2024. "Financial Literacy of Entrepreneurs and Companies’ Performance," JRFM, MDPI, vol. 17(2), pages 1-14, February.

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