| ISSN No. : | 2320-9186 |
| Journal Title : | EFFECT OF FINANCIAL LITERACY ON GROWTH OF MICRO AND SMALL ENTERPRISES IN KITUI TOWN, KITUI COUNTY. |
| Journal URL : | https://www.citefactor.org/check |
| Publisher Name : | Sakayo Dennis Muatha,Dr. Kevin Wachira |
| Country : | Kenya |
| Language : | ENGLISH |
| Discipline : | Multidiciplinary |
| Organization Name : | SEKU |
| Frequency : | Annual |
| Start Year : | 2020 |
| Journal Description : | Despite the significant contribution of Micro and Small Enterprises (MSEs) to the economy, MSEs have been faced by a number of issues affecting their growth. One of the issues relates to inadequate financial literacy which limits their growth and diminishes their contribution to sustainable development. Consequently, the growth of MSEs is inhibited in terms of liquidity and being unable to attend effectively to their daily business operations and investments commitments thus losing on business opportunities which builds up difficult to achieve their growth in terms of size and wealth accumulation. The general objective of the study was to establish the effect of financial literacy on growth of MSEs in Kitui Town, Kitui County. The study aimed at establishing the influence of debt management skills on the growth of MSEs in Kitui Town. The study was anchored on financial literacy theory and dual process theory. The study used descriptive research design. The target population of the study was 1448 MSEs. Stratified random sampling was used to select a sample of 313 MSEs. 313 questionnaires were dispatched with 213 being filled and returned yielding a response rate of 68%. The study found that debt management skills had a positive and significant effect on growth of MSEs. Descriptive analysis and findings indicate that multiple borrowing from formal and informal sectors adversely affect debt repayment which may hinder growth of MSEs. This study concludes that MSEs need to be trained on debt management. The study also concluded that MSEs should avoid accumulating debts through multiple borrowings from both formal and informal sector. |
| Licence Type : | CC BY |