OWNER FINANCIAL LITERACY CHARATERISTIC: IMPLICATION FOR ACCESS TO FINANCE AMONG SMEs IN KWARA STATE NIGERIA
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Date
2018
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Publisher
Osogbo Journal of Management
Abstract
Active participation of Small and Medium Enterprises (SMEs) in the financial market, through easy
access to financial products and services, does not only enhance their growth but also leads to financial
development which is widely recognized as an important determinant of economic growth. The extent of
complexity of the current financial landscape, which has unfolded a wide variety of financial products
and services, behoves SME owners’ financial literacy for its exploitation. The study investigated the
impact of financial literacy on financial access among SMEs in Kwara State, Nigeria. Data were drawn
from the primary source through the use of questionnaire to elicit response from sampled SMEs owners
or managers. Pearson’s correlation and Multiple Regression were adopted for inferential statistical
analysis. The results revealed a significant positive relationship between financial knowledge and
financial access; financial attitude and financial access; and financial behaviour and financial access.
Based on these findings, the study concluded that financial literacy determines financial access of SMEs
in Kwara State. The study therefore recommended branded and SME-targeted financial literacy
programmes and schemes, instilling sound financial knowledge and positive financial attitude and
behaviour, with emphasis on new technologies with a view to sustaining the sector financially and
technically. Also, as their exist many unbanked SMEs in rural areas, penetration of the areas by opening
more credit windows together with rolling off literacy training programmes to instill confidence and
better usage could go a long way in enhancing financial access.