Financial Literacy and Business Performance: Evidence from Small Medical Enterprises in Katavi Region
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The study examines financial literacy levels among small medical entrepreneurs and its impacts on business performance. Specifically, it aims at assessing attitude and behavior of the small medical entrepreneurs on the subsequent performance of small medical firms using Katavi region as the evidence. The study employed a cross-section study design whereby the primary data was collected through a survey qualitative interview to collect comprehensive information regarding level of financial literacy among small medical entrepreneurs. A sample of 200 entrepreneurs was selected, ensuring diversity in terms of gender, age and educational background to represent the broader population accurately. Multiple regression model was engaged in the analysis to assess influence of financial skills on performance small medical enterprises. Result from multiple regression analysis indicate that financial literacy has a positive and significant influence on business performance. Managers with financial literacy understand business-related financial concepts including debts, savings, insurance and investment which ensure the good performance of their business. Findings of this study revealed that financial literacy among entrepreneurs can improve business performance. These findings contribute significantly to findings of previous similar studies on how financial literacy influence firms’ performance. Government agencies and corporations recognize the role of financial skills among medical entrepreneurs on progress small medical firms. Therefore, proactive initiatives of disseminating enough skills on financial matters both formally and informally give the room for provision of enough applied financial skills among entrepreneurs.
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