The Effects of Financial Literacy on the Financial Performance of Small-Scale Enterprise. (The Case of Makola Market)
study sought to evaluate the Effects of Financial Literacy on the financial Performance
of small-scale Enterprises. Financial. The findings of this study would benefit
the government and other stakeholders in knowing whether the gains of the financial
literacy training can outweigh the costs of undertaking the training. This study
adopted a descriptive survey design. The target population for this study is all
the small-scale enterprises at the makola market which was 6034 traders. The target
sample was 100 and since this is a descriptive study, Simple random sampling is
more appropriate as it gives all items in a population an equal chance of being
selected. Primary data was gathered by use of structured questionnaires which was
both open and close-ended questions. Data gathered from the questionnaires was analyzed
quantitatively using statistical package for social sciences (SPSS) computer software.
SPSS generated both descriptive and inferential statistics. Descriptive statistics
including the mean and standard deviation was used to capture the characteristics
of the variables under study. Inferential statistics was used to analyze the relationship
of the independent variable and the dependent variables. The study established that
there was positive correlation between the dependent variable (financial performance)
and the Independent Variables (financial literacy). Financial literacy also affected
the savings and behavior of small-scale enterprise owners at makola market while
savings behavior and attitude do not have effect on financial performance which
means that the performance of traders at makola market is not determined by their
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