Financial Literacy Training and Micro Insurance on the Financial Performance of SMEs in the Sekondi-Takoradi Metropolis, Ghana
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Date
2020-11-29
Authors
Amoah, Ciciana
Mungai, John N.
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Research in Business & Social Science
Abstract
This research examines the effect of financial literacy training and micro insurance on the financial
performance of Small and Medium Enterprises in the Sekondi-Takoradi Metropolis of Ghana. This
study aims (i)to determine the effect of financial literacy training on the financial performance of SMEs,
(ii) to establish the effect of microinsurance on the financial performance of SMEs; (iii) and to
determine the moderating effect of government regulations on the relationship between financial
literacy training, micro-insurance and the financial performance of SMEs. The study was based on the
financial intermediation theory and Schumpeter’s theory of innovation. The study adopted an
explanatory research design, using a sample size of 260 SMEs in the Sekondi-Takoradi metropolis,
Ghana. A structured questionnaire was used to collect data on financial literacy training, micro
insurance, financial performance, and government regulations from SME owners and microfinance
institutions. Analysis of the data collected revealed that both financial literacy training and microinsurance had a positive and significant effect on the financial performance of SMEs. The study
recommends that the management of microfinance institutions that provide financial literacy training
and micro-insurance should undertake a survey on the needs of SMEs and the specific challenges they
face in accessing microfinance services
Description
A Research Article in the International Journal of Research in Business & Social Science
Keywords
Small and medium enterprises, Financial Literacy Training, Micro Insurance, Ghana
Citation
Amoah, C., & Mungai, J. N. (2020). Financial literacy training and micro insurance on the financial performance of SMEs in the Sekondi-Takoradi Metropolis, Ghana. International Journal of Research in Business and Social Science (2147-4478), 9(7), 247-256.