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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Financial Literacy, Investment and Savings Behaviour of Small and Medium Enterprise Operators in Ghana

Victor Kwadwo Bosea, Patrick Kwame Basuah, Emmanuel Asare, Richard Twum Barimah

http://dx.doi.org/10.6007/IJARAFMS/v13-i1/16303

Open access

This research aims to investigate financial literacy, investment, and savings behavior among SMEs in Ghana. The population of 300 participants were sampled for the study, quota and purposive sampling methods were used in the selection of participants. Non-probability sampling was used, as it was difficult to precisely determine the probability of selection. The study revealed that most of the participants are less financially literate and this affects their savings behavior. This shows that financial literacy has an enviable influence on an individual’s savings behaviour. The study shows that sex/gender, age, and marital status have statistically enormous effect on savings behaviour. Due to the low level of education which reflects a high level of financial literacy, most of the participants use informal ways to save. To create awareness about finances and their related significance, financial institutions can organize more financial literacy programs to help these SMEs organize their finances and develop interest in savings. The government must put in place measures in building a resilient economy and a positive working environment to help people generate more money or revenue since more will be saved by individuals if more is received or earned.

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In-Text Citation: (Bosea et al., 2023)
To Cite this Article: Bosea, V. K., Basuah, P. K., Asare, E., & Barimah, R. T. (2023). Financial Literacy, Investment and Savings Behaviour of Small and Medium Enterprise Operators in Ghana. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(1), 188–197.