This study examines the relationship between financial literacy, record-keeping and enterprise performance of informal sector enterprises in the Bolgatanga Municipality in the Upper East Region. The sector plays a crucial role in the economy of many developing countries, including Ghana. However, it often faces challenges related to financial management, which …
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This study examines the relationship between financial literacy, record-keeping and enterprise performance of informal sector enterprises in the Bolgatanga Municipality in the Upper East Region. The sector plays a crucial role in the economy of many developing countries, including Ghana. However, it often faces challenges related to financial management, which hinders its growth and sustainability. The main objectives of this research are to assess the level of financial literacy among informal sector enterprises, examine their record-keeping, and assess the impact of financial literacy and record-keeping on enterprise performance. Using a cross-sectional quantitative approach, surveys were conducted with a representative sample of informal sector enterprises operating in the Bolgatanga Municipality. Data were collected at a single point in time, allowing for a snapshot of the current relationship between financial literacy, record-keeping, and enterprise performance in the informal sector. Furthermore, a significant number of these businesses do not adhere to formal record-keeping systems. The study also revealed the favorable connection between financial literacy, record-keeping, and the performance of enterprises. Enterprises exhibiting greater financial literacy and practicing efficient record-keeping tend to witness profitability and growth. These findings have important implications for policymakers, business support organizations, and informal sector enterprises. Efforts should be made to enhance financial literacy in the informal sector through targeted training and educational programs. By addressing the financial literacy and record-keeping challenges faced by informal sector enterprises, policymakers can contribute to the economic development and sustainability of the Bolgatanga Municipality and similar areas
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