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Original Research
Assessing the role of education and financial literacy in shaping the success of spaza shops: Case study of Gamalakhe Township, KwaZulu-Natal, South Africa
Submitted: 30 January 2025 | Published: 08 August 2025
About the author(s)
Mondli B. Mkhize, Department of Entrepreneurial Studies and Management, Faculty of Management Sciences, Durban University of Technology, Durban, South AfricaShame Mugova, College of Accountancy, Finance and Economics, Faculty of Business, Law and Social Sciences, Birmingham City University, Birmingham, United Kingdom
Abstract
Background: This study examined how education influences financial literacy (FL) and subsequent business success among spaza shop owners in Gamalakhe Township, KwaZulu-Natal.
Aim: This study aimed to investigate whether the level of education is a significant factor in determining the FL skills needed to run spaza shop businesses by surveying 100 spaza shop owners.
Setting: The study setting was Gamalakhe Township, KwaZulu-Natal.
Methods: The quantitative data were analysed via correlations and ordinal logistic regression.
Results: The findings of descriptive statistics and correlations reveal that education significantly predicts FL levels, which in turn drives improved decision-making and business outcomes.
Conclusion: The ordinal logistic regression revealed that education level influences the level of FL.
Contribution: The findings emphasise the importance of developing experiential learning and mentorship programmes to address FL gaps among township entrepreneurs.
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