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Faculty of Accounting and Informatics

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Subject: search.filters.subject.Financial behaviour

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    Unearthing financial wisdom : exploring the factors shaping financial literacy among agribusiness entrepreneurs in Zimbabwe
    (2024-03) Gumbo, Lilian; Marimuthu, Ferina; Vengesai, Edson
    Purpose: Agribusiness serves as the cornerstone of the Zimbabwean economy, with a significant portion of the population relying on agricultural-related pursuits for sustenance. However, the concerning financial practices exhibited by agribusiness entrepreneurs, coupled with lackluster sectoral performance, present pressing issues. These issues manifest as pronounced instances of financial exclusion, loan defaults, and diminished productivity within the sector. The primary focus of this study was to assess the financial literacy of agribusiness entrepreneurs and elucidate the principal determinants of this literacy, employing the theoretical framework of the lifecycle hypothesis. Design/methodology/approach: The research design employed was explanatory in nature, involving the collection and subsequent quantitative analysis of data via questionnaires. The study encompassed a population of 172,221 agribusiness farmers hailing from five distinct districts in Zimbabwe, namely Mutare, Mt Darwin, Mutoko, Gweru, and Masvingo. To ensure a representative sample, a sample size of 623 was calculated utilizing the Slovin formula. Findings: The research outcomes unveiled an overall deficiency in financial literacy within the agribusiness sector, particularly pronounced among women, individuals with low incomes, those possessing limited educational attainment, and those supporting multiple dependents below the age of 18. As a crucial recommendation, the study advocates for the implementation of mandatory financial literacy courses at both the primary and secondary education levels. Such an intervention could contribute significantly to addressing the identified shortcomings in financial literacy among agribusiness entrepreneurs and subsequently foster more prudent financial behaviors within the sector.
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    Financial literacy operationalization model for agribusiness entrepreneurs in Zimbabwe
    (International Institute for Science, Technology and Education, 2023-01) Gumbo, Lilian; Marimuthu, Ferina; Vengesai Edson
    Agribusiness is the cornerstone of the Zimbabwean economy as most people survive on agricultural related activities and it is regarded as the first step to fighting poverty among the rural population. However, the sector has not been performing well in terms of productivity due to various factors, which include poor management of borrowed funds, higher loan defaults and financial exclusion. The study sought to assess the level of financial knowledge, financial behaviours, and financial attitudes of agribusiness entrepreneurs and to develop an operationalisation model for improving financial literacy. Pragmatism research philosophy guided this research to use mixed method approaches and sequential mixed method research design. Quantitative data was first collected using a research questionnaire, followed by interviews that were conducted to build upon quantitative results. Multistage cluster sampling and convenience sampling was used to select research participants. Research findings established that agribusiness entrepreneurs: (1) have low financial knowledge, (2) exhibit poor financial behaviours (3) have good financial attitudes except for diverting a portion of business loans for personal use. The general level of financial literacy was very low among agribusiness entrepreneurs. Hence the study recommended a financial literacy operationalisation model for agribusiness entrepreneurs for consideration by policy makers.
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    The influence of financial literacy and financial technology on the financial behaviour of high school teachers in KwaZulu-Natal
    (2022-05-30) Jali, Nkosinathi Prince; Nyide, Celani John; Stainbank, Lesley June
    The argument that many people make financial decisions that are not in their best interest cannot be disputed. In using financial technology, there are both advantages and disadvantages. One disadvantage is that making irresponsible financial decisions has become easier since information is readily available to people, leading to a lot more debt. On the other hand, it can also make it easier for people to save more money, depending on their financial literacy level. Due to financial literacy, people are better able to make wise financial decisions and are more likely to save more money for the future. The Basic Education Department in South Africa is faced with a crisis of teachers leaving their profession prematurely. Some of the reasons cited for teachers’ resignations include the search for pension pay-outs that would redeem them from indebtedness. Teachers' mass resignations create a serious problem in the education system that not only compromises the quality of education, but also increases recruitment, training and development costs. Moreover, South Africa is facing this crisis at a time when there is a lack of qualified, experienced and competent teachers in critical subjects such as Mathematics, Science, and Technology. To determine the influence of financial literacy and financial technology on the financial behaviour of high school teachers in KwaZulu-Natal (KZN), this study employed a quantitative research approach. Data was collected from 246 high school teachers in Msunduzi Municipality KZN using a self-administered questionnaire. Several hypotheses were formulated and tested using regression analysis. The study revealed that most of the high school teachers in Msunduzi Municipality had sound financial management knowledge which enabled them to mitigate and navigate financial literacy challenges. However, maintaining or sticking to a planned budget and finding solutions when facing financial challenges were problems mentioned by the teachers. Nevertheless, most of the teachers demonstrated that they had good debt management skills and financial management and planning skills which helped them to draft monthly budgets and keeping track of expenses. Additionally, the teachers indicated that they had a good grasp of financial technology services, but also indicated that their knowledge of financial technology made it easier for them to access and spend the money; this led to poor savings and negative financial behaviour Furthermore, despite the convenience that financial technology services offer, they also highlighted the security risks of using this technology such as the possibility of being hacked or defrauded online by scammers. As this study used a quantitative research approach, it is suggested that another study should be conducted using a mixed methodology, which would help to expand the corpus of knowledge in this area.