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Financial literacy training and micro insurance on the financial performance of SMEs in the Sekondi-Takoradi Metropolis, Ghana

Author

Listed:
  • Ciciana Amoah

    (School of Business, Kenyatta University, Nairobi, Kenya)

  • John N. Mungai

    (School of Business, Kenyatta University, Nairobi, Kenya)

Abstract

This research examines the effect of financial literacy training and micro insurance on the financial performance of Small and Medium Enterprises in the Sekondi-Takoradi Metropolis of Ghana. This study aims (i)to determine the effect of financial literacy training on the financial performance of SMEs, (ii) to establish the effect of microinsurance on the financial performance of SMEs; (iii) and to determine the moderating effect of government regulations on the relationship between financial literacy training, micro-insurance and the financial performance of SMEs. The study was based on the financial intermediation theory and Schumpeter’s theory of innovation. The study adopted an explanatory research design, using a sample size of 260 SMEs in the Sekondi-Takoradi metropolis, Ghana. A structured questionnaire was used to collect data on financial literacy training, micro insurance, financial performance, and government regulations from SME owners and microfinance institutions. Analysis of the data collected revealed that both financial literacy training and micro-insurance had a positive and significant effect on the financial performance of SMEs. The study recommends that the management of microfinance institutions that provide financial literacy training and micro-insurance should undertake a survey on the needs of SMEs and the specific challenges they face in accessing microfinance services. Key Words: Small and medium enterprises, Financial Literacy Training, Micro Insurance, Ghana

Suggested Citation

  • Ciciana Amoah & John N. Mungai, 2020. "Financial literacy training and micro insurance on the financial performance of SMEs in the Sekondi-Takoradi Metropolis, Ghana," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(7), pages 247-256, December.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:7:p:247-256
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    References listed on IDEAS

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    1. Joseph Oscar Akotey & Joshua Abor, 2013. "Risk management in the Ghanaian insurance industry," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 5(1), pages 26-42, April.
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