Financial literacy and sustainability of small and medium enterprise’s (sme’s) in ghana: a survey of selected sme’s in tema industrial region

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The general objective of the study is to investigate how financial literacy promotes sustainability of SMEs in the Tema industrial region of Ghana.The research design adopted was survey research design. The study used a structured questionnaire to collect primary data. The sample size of the study was seventy (70). Quantitative method was adopted to analyze data collected. Descriptive research approach was adopted for presenting analyzed data. The findings of the study are presented using simple tables. Data collected was analyzed using the Statistical Package for Social Scientists (SPSS) to generate frequencies, percentages, and central measure of tendencies. The study found that respondents had knowledge of financial matters. The study also found that personal savings formed the major source of funding for SMEs. Results of the study further reveal that financial literacy has an effect on access to finance and credit for the operation of SMEs in Tema. Additionally, the study found that financial literacy plays a significant role in determining the long-term viability of SMEs based on the findings that were presented in the research.The report suggests managers recognize and actively manage their financial management education. This research also challenges academics and business managers to undertake a more comprehensive investigation of how and why financial capital and resource flexibility impact the performance results of small and medium-sized firms (SMEs), which depend on personal savings for survival. The government, via institutions like the Ghana Enterprises Agency (GEA), should also arrange and promote the introduction of training seminars and workshops for SME owners and managers, since most of them depend on them to enhance their financial literacy. Thus, all GEA training programs must include financial basics.
A Thesis submitted to the KNUST Business School College of Humanities and Social Sciences in partial fulfillment of the requirements for the degree of MSc. Accounting and Finance