Financial Literacy and Financial Inclusion for Small-Scale Enterprises in Sunyani Municipality in the Brong -Ahafo Region of Ghana (Published)
This study sought to examine the relationship between financial literacy and financial inclusion among owners/managers of SSEs in the Sunyani Municipality. Primarily, the research examined the financial literacy level, the extent of financial inclusion, and the relationship between financial literacy and financial inclusion for SSEs in Sunyani Municipality, which was necessary for their business. The study’s objective employed primary data and used a mixed method approach as well as a descriptive design survey design to randomly sample 230 owners/managers from five categories of SSEs in the Sunyani Municipality. The findings revealed that managers with high financial literacy were more likely to have sound judgment about financial issues, make the right decision among financial alternatives, and have sound personal finance practices. In addition, it was found that the extent of financial inclusion depended mainly on SSEs’ knowledge levels of financial products/services. The positive outcomes of being financially literate and financially inclusive were driven by behaviour such as planning expenditures and building up a financial safety net. Since financial literacy is necessary for business financial inclusiveness, it was recommended to SSEs strive for financial knowledge to enable them to make good financial decisions and aid their financial inclusiveness. Again, any policy that aims at the growth and development of SSEs with adequate training and education to help increase their financial status which will affect their financial inclusion.
Citation: Ameyaw M. (2022) Financial Literacy and Financial Inclusion for Small-Scale Enterprises in Sunyani Municipality in the Brong -Ahafo Region of Ghana, International Journal of Business and Management Review, Vol.10, No. 8, pp.61-74
Keywords: : Human Capital, Financial Inclusion, Financial literacy, Ghana, small scale enterprises
Effects of Financial Inclusion on the Economic Growth of Nigeria (1982-2012) (Published)
Inclusive financial arrangement is becoming a policy issue in both developed and developing nations of the world as it has been perceived as a veritable tool for poverty alleviation and economic development. This paper examines the effects of financial inclusion on the economic growth of Nigeria (1982-2012). Data for the study are collected mainly from secondary sources such as Statistical Bulletins of the Central Bank of Nigeria (C.B.N.), Federal Office Of Statistics (F.O.S.) and World Bank. Employed data consist of such bank parametric as Branch Network, Loan to Rural Area, Demand Deposit, Liquidity Ratio, Capital adequacy, and Gross Domestic Product. Extracted data spanning about thirty-year period; 1982 to 2012 were related using the Ordinary Least Square (OLS) method (STATA 10). Tested hypothesis on Poverty Reduction found Loan to Rural Areas(LRA)Agric. Guaranty Fund (ACGSF)significant to Per Capital Income(PCI) (@5%)given t-stat2.82,p>t=4.85 while Financial Deepening(FDI) and Broad Money(FD2) also significantly influenced Economic Growth(Using GDP)with t-stats=3.61, 4.85 p>t=0.0013 and 0.000 respectively. Deposits From Rural Areas(DRA)as surrogate for financial inclusion is influenced by Loans to Rural Areas (LRA) and Small Scale Enterprise (LSSE)as surrogates for financial intermediation given t-stats=2.2 and2.9with p-values=0.03 and 0.007. The overall results of the regression analysis show that inclusive Bank financial activities greatly influenced poverty reduction(R2=0.74) but marginally determined national economic growth and Financial Intermediation through enhanced Bank Branch Networks, Loan To Rural Areas, and Loan To Small Scale Enterprise given about 50% relatedness between variables on either sides of the equations. Policy recommendations are made on the basis of these findings.
Keywords: Agricultural Guarantee Scheme Fund, Bank Branch Network, Financial Inclusion, Liquidity Ratio, Loan to Rural Area, economic growth