scholarly journals Performance implications of financial capital availability on the financial literacy – performance nexus in South Africa

2016 ◽  
Vol 13 (2) ◽  
pp. 354-362 ◽  
Author(s):  
Neneh Brownhilder Ngek
Keyword(s):  
South Africa ◽  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Literacy Skills ◽  
Financial Capital ◽  
Financial Decisions ◽  
Literacy Performance ◽  
Entrepreneurial Activities ◽  
Medium Enterprises ◽  
The Impact

The need for making optimal financial decisions is very important in small and medium enterprises (SMEs) especially as most SMEs are always financially constrained. Consequently, there has been an increasing interest from researchers to determine how well financial literacy skills can enable entrepreneurs to make decisions that result in optimal financial outcomes and possible enhance the performance and growth of their businesses. This study had as objectives to find out the impact of financial literacy on firm performance, as well as to examine the moderating effect of financial capital availability on the financial literacy – performance relationship, amongst SME in the Free State province of South Africa. The results showed that on average SME have low levels of financial literacy and financial capital availability. It was also observed that financial literacy positively influenced SME performance, and that the relationship is positively moderated by financial capital availability. It is, therefore, necessary for SME owners to develop financial literacy skills as an essential part of entrepreneurial activities. Likewise, since businesses rely on financial capital to invest, develop and grow, policy makers should put in place measures on how to bridge the access to finance gap, and, thus, ensure that entrepreneurs are relieved from financing constraints

The Impact of Financial Literacy on Financial Preparedness for Retirement in the Small and Medium Enterprises Sector in Uganda

2020 ◽  
Vol 9 (3) ◽  
pp. 26-41
Author(s):  
Colin Agabalinda ◽  
Alain Vilard Ndi Isoh
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Group Analysis ◽  
Moderating Effect ◽  
Primary Data ◽  
Retirement Preparedness ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship ◽  
Effect Of Age

The study investigated the direct effects of financial literacy (knowledge, skills, and attitudes) on financial preparedness for retirement and the moderating effect of age among the small and medium enterprises in Uganda. Primary data was collected from a sample of n = 380 selected from the SME workforce. Descriptive analysis was run on SPSS, while validity and reliability of the measurement items yielded satisfactory composite reliability scores and average variance explained (AVE) scores for all items. Structural equation modelling (SEM) was used to test the hypotheses and multi-group analysis conducted to test for the moderating effect of age on the relationship between financial literacy and retirement preparedness. The results revealed that knowledge and skills were significant predictors of retirement preparedness. However, ‘attitude' was not a significant predictor, and age had no moderating effect on the relationship between the study variables. These findings present practical implications for policymakers and financial educators in a developing country context.

scholarly journals Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance

2020 ◽  
Vol 13 (5) ◽  
pp. 97 ◽  
Author(s):  
Ploypailin Kijkasiwat ◽  
Pongsutti Phuensane
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Capital ◽  
Medium Enterprise ◽  
Medium Enterprises ◽  
The Impact

This study examines the moderating effect of firm size on the relationship between innovation and firm performance of small and medium enterprises in 29 countries in Eastern European and Central Asia. The study also investigates whether the impact of innovation in products and processes on firm performance is affected by financial capital. The method applied is partial least square structural equation modelling. The findings indicate that firm size and the financial capital both moderate and mediate the impact of innovation on firm performance, positively or negatively. The findings have implications for decision makers by highlighting the significance of firm size and financial sources when planning to introduce innovations to enhance firm performance.

scholarly journals The Relationship between Learning Orientation and the Performance of Small and Medium Enterprises in South Africa

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 232-240
Author(s):  
Evelyn Motsepe ◽  
Olawale Fatoki
Keyword(s):  
South Africa ◽  
Small And Medium Enterprises ◽  
Learning Orientation ◽  
Mpumalanga Province ◽  
Performance Variables ◽  
Data Collection Process ◽  
Local Municipality ◽  
And Performance ◽  
Medium Enterprises ◽  
The Impact

Small and medium enterprises (SMEs) are an important vehicle in income re-distribution, poverty alleviation, employment creation and contribute to the gross domestic product of South Africa. However, SMEs in South Africa suffer from a weak level of performance and a high failure rate. The main objective of this study was to investigate the impact of learning orientation on the performance of SMEs. A quantitative approach was used, while a self-administered questionnaire was also employed during data collection process. A three- section questionnaire covering demographic information, learning orientation variables and performance variables was prepared and distributed randomly to a selected sample of 390 SME owners in Msukaligwa Local Municipality in Mpumalanga Province of South Africa. A total of 181 questionnaires were returned. Descriptive statistics, factor analysis, correlation and regression analysis were used for data analysis. The Cronbach’s alpha was used to measure reliability. The results of the study revealed a significant positive relationship between learning orientation and the performance of SMEs. Recommendations to improve the learning orientation of SMEs are suggested.

scholarly journals The Impact of Leadership Styles on the Entrepreneurial Orientation of Small and Medium Enterprises in South Africa

2017 ◽  
Vol 9 (2(J)) ◽  
pp. 104-113
Author(s):  
Obey Dzomonda ◽  
Olawale Fatoki ◽  
Olabanji Oni
Keyword(s):  
South Africa ◽  
Leadership Styles ◽  
Leadership Style ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Sampling Technique ◽  
Active Role ◽  
Medium Enterprises ◽  
The Impact

The critical role Small and Medium Enterprises play in the economic prosperity of nations cannot be understated. SMEs actively contribute towards economic growth and development through their active role as innovators and agents for change. The authors of this paper believe that leadership styles exercised by SME owners have a bearing on the innovative ability of SMEs. Hence, this paper aimed at investigating the impact of leadership styles on the entrepreneurial orientation of SMEs in Polokwane Municipality. A quantitative research method was used and 103 SMEs participated in the survey. The random sampling technique was used. Self-administered questionnaires were utilised to collect data in a survey. Data analysis included descriptive statistics, Pearson’s correlation and regression analysis. Reliability of the data collection instruments was measured using the Cronbach’s alpha. The results indicated that the SMEs display average levels of entrepreneurial orientation. In addition, the results showed that SMEs display average levels of leadership styles inclined towards transformational leadership style. Furthermore, the results showed a significant positive relationship between the independent variables: leadership styles with the dependent variable (EO) of SMEs. SMEs were recommended to provide flexible leadership styles that will make EO to flourish in their businesses. Furthermore, the policy makers and relevant authorities were recommended to devise and implement a consortium of strategies and policies that can increase the level of entrepreneurial orientation among SMEs in South Africa.

scholarly journals An Analysis of Smes Market in History of Azerbaijan

2021 ◽  
Vol 129 ◽  
pp. 09006
Author(s):  
Jamila Hasanova Vagif
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Local Market ◽  
Research Database ◽  
History Of ◽  
Business Objects ◽  
Medium Enterprises ◽  
Start Ups ◽  
The Impact ◽  
Modern Technologies

Research background: World experience shows that small and medium business in a civilized form is an important condition for the restoration of not only the economy. Periods of recession, stagnation and stabilization at a time when small and medium enterprises are the acceptable form of activity were observed. Purpose of the article: The purpose of the study is to identify the weaknesses of small and medium enterprises in the local market, to analyze the main stages of development of such enterprises in Azerbaijan. The research database includes works on the issues of local and foreign authors, decisions of the Cabinet of Ministers and the Ministry of Economy of Azerbaijan, normative-legal acts, statistical materials. The results will serve as the basis for further actions- the formation of innovative databases for data processing and analysis, the correct creation of the management structure of many business objects, the support of know-how and start-ups, financial literacy and the reduction of profit leakage. The novelty and practical results of investigation: The importance of the impact of modern technologies and innovations on business development is also explained. The problems of business, which can hinder the diversification of the economy, were considered.

Pengembangan dan Validasi Modul Edukasi Literasi Keuangan Islami untuk Usaha Mikro, Kecil, dan Menengah

2018 ◽  
Vol 1 ◽  
pp. 320
Author(s):  
Ikka Nur Wahyuny ◽  
Lukman Hakim ◽  
Wiedy Murtini
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Financial Education ◽  
Literacy Education ◽  
Development Stage ◽  
Educational Module ◽  
Point Analysis ◽  
Addie Model ◽  
Medium Enterprises ◽  
The Impact

Various studies on financial literacy still focus on the measurement of financial literacy, exploration of Islamic financial literacy, and the impact of financial education on improving financial literacy. The existing studies still have no concerns and efforts to develop Module of Islamic Financial Literacy Education. This research aims to develop a valid Module of Islamic financial literacy education for Small and Medium Enterprises (SMEs). Development of media using ADDIE model. Materials and designs that have been compiled into draft Islamic Financial Literacy Education Module. At development stage obtained data from the filling sheet validation by experts and practicioner, experts in the field of training media, linguists, and practitioners of SMEs. Validation results are processed by cut off point analysis and ideal percentage to determine that the module made has met both criteria. Islamic Financial Literacy Education Module is considered valid and feasible by material experts, media experts, linguists, and SMEs practitioners. Based on the validation of experts and practitioner shows that the educational module is worthy to be used to improve the Islamic financial literacy of SMEs.

The impact of electricity crises on the consumption behaviour of small and medium enterprises

2008 ◽  
Vol 19 (1) ◽  
pp. 13-24 ◽  
Author(s):  
A. Von Ketelholdt ◽  
A. Wöcke
Keyword(s):  
South Africa ◽  
Energy Savings ◽  
Small And Medium Enterprises ◽  
Electricity Consumption ◽  
Cape Town ◽  
Social Strategies ◽  
Information Campaigns ◽  
Consumption Behaviour ◽  
Medium Enterprises ◽  
The Impact

Small and medium enterprises (SMEs) will play a key role in future economic and social strategies in South Africa. However, we find that SMEs are par-ticularly vulnerable to shocks in their external envi-ronment due to a general lack of skills and resources. This is critical as the future demand for electricity in South Africa is likely to outstrip supply and electricity will become increasingly unreliable and expensive. We surveyed 250 SMEs in Cape Town and found that the prevailing policy methods of changing electricity consumption behaviour: information campaigns, increasing prices, and pro-viding rebates for energy savings, have had limited results and are unsustainable when applied to SMEs.

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