INFLUENCE OF DIGITAL FINANCIAL LITERACY ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN ANAMBRA STATE
Abstract
This study examined the influence of digital financial literacy on the performance of Small and Medium Scale Enterprises (SMEs) in Anambra State. Three specific purposes, three research questions and three hypotheses guided the study. The study employed a descriptive survey design. Population for the study was 2,832 registered SMEs operators in Anambra State. The sample size of 350 respondents was determined using Taro Yamane’s formula and selected through stratified random sampling. Data were collected using a structured questionnaire. The instrument was face validated by three experts in School of Business Education, Federal College of Education (Technical), Umunze. The instrument was trial tested to ensure its reliability and the data collected was analyzed using Cronbach’s Alpha. The scores gave coefficient reliability of 0.86, 0.82 and 0.92, for the three clusters respectively and an overall reliability coefficient of 0.86. Data were analyzed using mean, standard deviation, and t-test statistics. The study revealed that the level digital financial literacy among SMEs operators is moderate (mean= 3.17), digital financial technologies has significantly improved the operations of SMEs in Anambra State by enhancing transaction speed, record keeping and access to credit. It was further revealed statistically a significance difference in digital financial literacy between male and female owners, with male operators demonstrating higher digital financial literacy than their female counterparts. The study concluded that digital financial technologies play a critical role in enhancing the performance of SMEs operators in Anambra State. It was recommended that Government should partner with telecom providers to improve network reliability and reduce data costs for SMEs operators among others.
Keywords: Digital financial literacy, financial technology small and medium scale enterprises
Vivian K. Anyaeneh and Ikechukwu S. Ndubuisi
School of Business Education, Federal College of Education (Technical), Umunze