The Impact of Financial Literacy on the Growth of Small- Scale Businesses in Mukono District Central Division
Loading...
Date
2025-05-13
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Uganda Christian University
Abstract
The study investigate the impact of financial literacy on the growth of small scale enterprise in Mukono district division, Uganda. Financial literacy is increasingly recognised as a key driver of business success, particularly for small enterprise that operate in dynamic and resource constrained environments. The primary objective of research was to examine the impact of financial literacy on the growth of small-scale business. It sought to achieve the following objective, to examine how the financial knowledge influences the growth of small-scale businesses in Mukono district, to examine the effect of financial attitude on the growths of small-scale businesses in Mukono district, to examine the effect of financial knowledge on the growth of small-scale businesses in Mukono district. The study was limited to Mukono district specifically its central division, where a variety of small-scale businesses operates. The study used a mixed methods design to achieve these goals. It combined quantitative and qualitative approaches. Stratified sampling was used to select a sample of 67 small scale firms from 80 registered in Mukono municipality. Data was collected using structured questionnaire, interviews, and document reviews. This gave both the quantitative data and qualitative insights into the study topic. Descriptive statistics analyse the data. They summarized financial literacy and the business growth. The results were presented through the detailed table descriptive narratives. The study shows that financial knowledge has better growth. This is true, especially for budgeting, cash flow, and planning positive financial behaviour like reinvesting profits and managing cash flow, improve business performance. However, gaps in financial attitude, especially in credit management and risk assessment, may hinders SSEs growth. The study shows the financial literacy is vital for small business in Mukono district. It is vital for their growth and suvivals.it recommends targeted financial education programs. They should
address gaps in knowledge about credit management, interest rate and risk assessment. Standardized financial tools can help entrepreneurs improve their finance.
Description
Undergraduate