Financial Literacy and Performance of Small Businesses in Bolgatanga

The study was to examine the influence of financial literacy on the performance of small businesses in Bolgatanga. The study used a descriptive survey design in the quantitative approach. A simple random sampling technique was used to select 169 small businesses to formed part of the study. Questionnaire was used as a primary source of data. Furthermore, the data were analyzed using a Statistical Product for Service Solution version 21.0 by employing statistical techniques such as percentages and frequencies as well as independent t-test, ANOVA and multiple regression. This was presented by using tables and charts. The study found that small business owners have a moderate financial literacy level. Also, financial knowledge and financial awareness affect financial literacy level positively. Moreover, there were differences between small business owners' demographic characteristics such as sex, age, educational status and marital status and financial literacy level. Lastly, the financial literacy of small business’ owners affects firm performance positively. Therefore, the study recommended that small business owners should be educated on financial literacy, especially, on financial awareness and financial attitude. This should target small business owners of different sex, age category, marital statuses and educational statuses. Also, the National Board for Small Scale Industries should organize workshops on financial literacy for small business owners in Bolgatanga. Lastly, small business owners should be encouraged to improve upon their financial knowledge and financial awareness since it affects their financial literacy leve