Lack of financial literacy exacerbates SMEs’ appalling state in Gweru city.
Abstract
Unless policy makers are taken to task the spirit of SMEs in Zimbabwe shall remain
dampened for the unforeseeable future. Studies conducted confirmed SME owners ignorant
pertaining to further challenges experienced in the business due to lack of financial literacy.
The purpose of this study was to explore the impact of financial illiteracy to SMEs in spite of
various interventions to promote growth of SMEs. All the participants of this study were
purposefully selected in line with qualitative research approach used in data analysis. The
researcher employed a qualitative research approach where document analysis, focus group
discussions, open-ended questionnaires and face to face interviews were used. The study
revealed that several factors that include lack of financial education contributed further to
poor management skills, poor budgeting skills, lack of business information, poor decision
making and lack of non business behaviour. The study revealed a considerable low level of
financial literacy among entrepreneurs and this has far reaching consequences to the
management of their ventures. Such factors worsened the state of SMEs in Zimbabwe. The
study therefore recommends that the government, stakeholders, banks, financial support
institutions and individuals conduct financial literacy programmes to revive and strengthen
the viability of SMEs.
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References
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Author(s) and co-author(s) jointly and severally represent and warrant that the Article is original with the author(s) and does not infringe any copyright or violate any other right of any third parties, and that the Article has not been published elsewhere. Author(s) agree to the terms that the IJRDO Journal will have the full right to remove the published article on any misconduct found in the published article.
