The Entrepreneur and His Small Business: Is Financial Literacy Important?

Abstract

The most appropriate survival strategy for small businesses is to pursue the growth objective. Our study seeks to investigate the presence or otherwise of a relationship between financial literacy and small business growth. Our findings reveal that entrepreneurs with a high level of financial literacy are more likely to succeed at growing their businesses when compared to entrepreneurs with a lower level of financial literacy. Hence, financial knowledge, financial behaviour and financial attitude are important assets for growing small businesses. We recommend a concentration of efforts on the human capital development of entrepreneurs to ensure the survival and growth of small businesses in Nigeria.