IMPACT OF FINANCIAL LITERACY ON THE PERFORMANCE OF SELECTED FASHION DESIGN SMALL AND MEDIUM ENTERPRISES IN MUNICIPAL AREA COUNCIL FCT ABUJA

Abstract

The study examined the impact of financial literacy on the performance of selected fashion design Small and Medium Enterprises in Municipal Area Council FCT Abuja. The study specific objectives were centered on financial knowledge, behavior, and attitude of owners’ managers toward funding options, debt management, savings habit, budgeting and planning, and record keeping on the Performance (profitability and output) of selected fashion design in Municipal Area Council Abuja. The population of the was 210, which was adopted as the sample size. Purposive sampling and simple random sampling technique was adopted for the study. Linear regression statistical tool was used to test the hypothesis using SPSS. The findings of the study revealed that financial literacy have positive significant impact on the profitability of selected Fashion design enterprise. The findings further indicate a positive and significant impact of financial literacy on the output of Fashion design enterprises in Municipal Area Council FCT Abuja. The study concludes that financial literacy (financial knowledge, financial attitude and behavior) has positive significant impact on the Performance (profitability, and output) of selected Fashion design enterprises in Municipal Area council Abuja. the study recommends that Government agencies on entrepreneur, micro finance institutions and deposit money banks should organize financial education training that will create awareness for SMEs owners on areas that are lacking such as sources of funds and financing options for startup businesses. This will encourage SMEs in Fashion design to Operate profitably. Training programs for owners and Managers of Small and Medium Enterprises on debt management, budgeting and planning, record keeping, saving and retirement plans in schools and other institutions that seek to promote financial literacy and practice for improved output.