Financial Literacy and Micro Entrepreneurship in Abakaliki Metropolis

AFRAG039

Financial Literacy and Micro Entrepreneurship in Abakaliki Metropolis

Ogbonna Uzoma Emmanuel Department of Banking and Finance Ebonyi State University Abakaliki Phone No: 07064845278

Email: yuzymanuel@gmail.com

Irem Collins O. Department of Banking and Finance

Alex Ekwueme Federal University, Ndufu Alike Ikwo.

Phone No: 08036233908

Email: iremcollinsokey@yahoo.com

Nwogo Justin PhD Banking And Finance Department Ebonyi State University Abakaliki

Phone No: 08039369902

Email: nwogojusty@yahoo.com

Abstract

Finance is regarded as the strength of every business. The basic knowledge about the financial products and concepts is fundamental to entrepreneurship development in Nigeria – Ebonyi state. This study examined the effect of financial literacy on micro entrepreneurship development in Abakaliki metropolis – Ebonyi State. The study has the objectives of finding the effect of knowledge about bookkeeping on micro enterprises development in Abakaliki, to examine the effect of knowledge about sources of funding on micro enterprises development in Abakaliki metropolis and to determine the effect  of knowledge  about savings  on micro enterprises development in Abakaliki metropolis. The study adopted survey design where copies of questionnaire were distributed to 100 micro business owners out of which 95 copies were returned. Descriptive statistics was employed to analyze the data collected. The result of the study indicated that micro entrepreneurs in Abakaliki metropolis do not keep adequate record of their business transactions. The result equally showed that majority of the micro entrepreneurs relied on personal finance and thrift societies as their major sources of fund. It was also discovered that micro entrepreneurs have knowledge about savings but most of the savings are done outside banking system. The study concluded that financial literacy is paramount to micro entrepreneurship development and therefore recommended that micro entrepreneurs in Abakaliki should be educated on simple bookkeeping. They should also be encouraged to save with bank as this will pave way for them to borrow from bank.

Keywords: Financial Literacy, Entrepreneurship, savings, bookkeeping and sources of fund.

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