Repository logo
 

Faculty of Accounting and Informatics

Permanent URI for this communityhttp://ir-dev.dut.ac.za/handle/10321/1

Browse

Subject: search.filters.subject.Financial knowledge

Search Results

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    Financial literacy and SME loan repayments in South Africa during the COVID-19 era
    (LLC CPC Business Perspectives, 2022-11-04) Msomi, Thabiso Sthembiso; Nzama, Smangele
    Small and medium-sized enterprises (SMEs) are the primary victims of the COVID-19 outbreak because they lack adequate resources and are poorly prepared for such interruptions. For SMEs to expand, they need financial assistance such as loans and advances from financial service providers. However, they struggle to repay these loans and advances because they are small in size and do not make large turnovers, and owners lack adequate financial literacy. This study aims to investigate the relationship between financial literacy and loan repayment of SMEs. The study followed a positivist paradigm, and a quantitative approach was employed. A total of 110 self-completed Likert questionnaires were distributed, only 107 were filled correctly and analyzed using SPSS. The results from Pearson’s correlation coefficient showed a strong and significant relationship between financial literacy and SME loan repayments at r = 0.324, P < 0.0005. Regression analysis showed a significant linear relationship between financial literacy and SME loans repayments, F (1.152) = 17.806; P < 0.0005. P < 0.0005 is less than the independent variable (SME loans repayments), B = 0.324, P < 0.0005. The results imply that if SME owners are well-versed in finance, they will be capable of repaying outstanding loans and advances timely.
  • Thumbnail Image
    Item
    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.
  • Thumbnail Image
    Item
    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.