Financial Literacy Experiences on Small Scale Enterprises in Developing Countries: Challenges, Strategies and Possible Interventions

Abstract

The global economy recognized and appreciated the role played by small-scale enterprises (SMEs) for they make up 90 percent of all businesses worldwide, therefore financial literacy is an important aspect for its prosperity. This is because underprivileged financial literacy results of many SMEs to fail to attain their business success or become stagnant in business growth. In realizing this, the study wanted to investigate financial literacy experiences on small scale enterprises in developing countries, challenges, strategies, and possible interventions. In this paper, there is highlight of some basic financial literacies requires for the growth and prosperity of SMEs, the challenges and suggest strategies that owners and managers could adopt to achieve business prosperities in SMEs. Based on analysis and synthesis of various empirical studies, the paper concludes with suggestions on how book keeping skills, budget skills, and loan repayments skills contributes to small-scale enterprise performance. Subsequently, the paper recommended for equipping entrepreneurs with the financial literacy to access credit facilities from either financial institution. As a final point, there should be enhancement capacity building workshops to small scale enterprise so as to create awareness on the need to be equipped with these important skills for their business prosperity.