ABSTRACT The study seeks to evaluate the effect of financial accounting literacy on the performance of selected Small and Medium-Sized Enterprises in the Sunyani Municipality. The study sought to investigate numerous works of literature on the components of financial accounting literacy to shed light on how they may be operated …
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ABSTRACT The study seeks to evaluate the effect of financial accounting literacy on the performance of selected Small and Medium-Sized Enterprises in the Sunyani Municipality. The study sought to investigate numerous works of literature on the components of financial accounting literacy to shed light on how they may be operated and coordinated to achieve organizational objectives. The research design used was a descriptive survey. A sample of 112 SMEs was selected using a stratified random sampling technique. The study population was stratified as agro-processing, manufacturing, service providers, trading, arts and others. The study employed questionnaires to collect data from the field. Data was typeset using Microsoft office to ease the preparation of the report. Data were then tabulated and presented using descriptive statistics. The results of the study indicate that more SMEs that do not perform are from the informal sectors, have been in business for less than five years, have low annual revenue growth rate and are basically financial illiterate. Secondly, the study established that there is a direct relationship between financial literacy and SME performance. Finally, the study report urges the providers of various financial literacy programmes to consider implementing a programme that fits the culture and traditions of the context targeted and avoid size fits all, this is because different SMEs have different experiences. Sunyani Municipality should concentrate more on secondary education where technical and vocational training should be done to develop artisans, entrepreneurs and managers for the informal sector in both rural and urban centres.
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