IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v16y2024i1p41-51.html
   My bibliography  Save this article

Financial Literacy, Access to Digital Finance and Performance of Ugandan SMEs in Mbarara City

Author

Listed:
  • Rennie Bakashaba
  • Benjamin Musiita
  • Sarah Nabachwa

Abstract

This study investigates the relationship between financial literacy and access to digital finance, and how these impact the performance of small and medium-sized enterprises (SMEs) in Uganda. From a population of 4,776 SMEs in Mbarara City, the research uses a sample of 351 SMEs with a response rate of 99%, chosen based on the Krejcie and Morgan (1970) tables. To investigate the correlations between the variables, a cross-sectional design is used. The findings indicate a positive and significant relationship between financial literacy, access to digital finance and SME performance in Uganda. The regression analysis indicates that 45.7% of the variation in Ugandan SME performance can be explained by the combination of the effect of financial literacy and access to digital finance (adjusted R square = 0.457). This implies that the remaining 54.3% of the variation in SME performance was not taken into account in this study and is due to other factors. Given the significant amount of variation explained by these two variables, the study suggests that policymakers and stakeholders in Uganda's SME sector prioritize programs aimed at enhancing SMEs' financial literacy and access to digital finance. Additionally, the study recognizes the presence of other factors influencing SME performance, emphasizing the need for further research and attention in future planning.

Suggested Citation

  • Rennie Bakashaba & Benjamin Musiita & Sarah Nabachwa, 2024. "Financial Literacy, Access to Digital Finance and Performance of Ugandan SMEs in Mbarara City," Journal of Economics and Behavioral Studies, AMH International, vol. 16(1), pages 41-51.
    • Handle: RePEc:rnd:arjebs:v:16:y:2024:i:1:p:41-51
    DOI: 10.22610/jebs.v16i1(J).3696
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3696/2408
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3696
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v16i1(J).3696?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2014. "Business training and female enterprise start-up, growth, and dynamics: Experimental evidence from Sri Lanka," Journal of Development Economics, Elsevier, vol. 106(C), pages 199-210.
    2. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    3. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rennie Bakashaba & Benjamin Musiita & Sarah Nabachwa, 2024. "The Mediating Role of Access to Digital Finance on the Relationship between Financial Literacy and Performance of Uganda SMEs in Mbarara City," Journal of Economics and Behavioral Studies, AMH International, vol. 16(1), pages 140-151.
    2. Rennie Bakashaba & Benjamin Musiita & Sarah Nabachwa, 2024. "Entrepreneurial Networking and Performance of Ugandan Manufacturing SMEs: The Mediating Role of Innovation Capabilities," Journal of Economics and Behavioral Studies, AMH International, vol. 16(2), pages 87-98.
    3. Lu, Jinfeng & Dimov, Dimo, 2023. "A system dynamics modelling of entrepreneurship and growth within firms," Journal of Business Venturing, Elsevier, vol. 38(3).
    4. Chin‐jung Luan & Chengli Tien & Pei‐hua Wu, 2013. "Strategizing Environmental Policy and Compliance for Firm Economic Sustainability: Evidence from Taiwanese Electronics Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 22(8), pages 517-546, December.
    5. Jae Wook Yoo & Richard Reed & Shung Jae Shin & David J. Lemak, 2009. "Strategic Choice and Performance in Late Movers: Influence of the Top Management Team's External Ties," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 308-335, March.
    6. Jonathan H. Reed, 2022. "Operational and strategic change during temporary turbulence: evidence from the COVID-19 pandemic," Operations Management Research, Springer, vol. 15(1), pages 589-608, June.
    7. Qing Li & Long Hai Vo, 2021. "Intangible Capital and Innovation: An Empirical Analysis of Vietnamese Enterprises," Economics Discussion / Working Papers 21-02, The University of Western Australia, Department of Economics.
    8. Christine M. Chan & Jialin Du, 2021. "The dynamic process of pro-market reforms and foreign affiliate performance: When to seek local, subnational, or global help?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1854-1870, December.
    9. Robert P. Garrett Jr. & Jeffrey G. Covin, 2015. "Internal Corporate Venture Operations Independence and Performance: A Knowledge–Based Perspective," Entrepreneurship Theory and Practice, , vol. 39(4), pages 763-790, July.
    10. Marco Valeri & Rodolfo Baggio, 2021. "A critical reflection on the adoption of blockchain in tourism," Information Technology & Tourism, Springer, vol. 23(2), pages 121-132, June.
    11. Blanco Callejo, M, 2007. "LA VENTA DE LA ILUSIÓN Y “LA BRUJA DE ORO”: EL EMBRUJO DE UN CÍRCULO VIRTUOSOi /," Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 13(3), pages 33-56.
    12. Brogi, Marina & Lagasio, Valentina, 2022. "Better safe than sorry. Bank corporate governance, risk-taking, and performance," Finance Research Letters, Elsevier, vol. 44(C).
    13. Colombo, Massimo G. & Garrone, Paola, 1998. "Common carriers' entry into multimedia services," Information Economics and Policy, Elsevier, vol. 10(1), pages 77-105, March.
    14. Luís Cabral, 2018. "We’re Number 1: Price Wars for Market Share Leadership," Management Science, INFORMS, vol. 64(5), pages 2013-2030, May.
    15. Ashish Kumar & Muskaan Arora & Monika Saini, 2023. "Influence of mathematics on the academic performance of mechanical engineering students: a PLS-SEM approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(1), pages 367-376, February.
    16. Munjal, Surender & Requejo, Ignacio & Kundu, Sumit K., 2019. "Offshore outsourcing and firm performance: Moderating effects of size, growth and slack resources," Journal of Business Research, Elsevier, vol. 103(C), pages 484-494.
    17. Pandza, Krsto & Ellwood, Paul, 2013. "Strategic and ethical foundations for responsible innovation," Research Policy, Elsevier, vol. 42(5), pages 1112-1125.
    18. Acedo, Francisco J. & Coviello, Nicole & Agustí, María, 2021. "Caution ahead! The long-term effects of initial export intensity and geographic dispersion on INV development," Journal of World Business, Elsevier, vol. 56(6).
    19. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    20. Régis Coeurderoy & Rodolphe Durand, 2001. "La cohérence des choix stratégiques:l'impact des décisions d'entrée et des stratégies génériques sur la performance organisationnelle des firmes," Revue Finance Contrôle Stratégie, revues.org, vol. 4(3), pages 57-88, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:16:y:2024:i:1:p:41-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.