Original Research
The role of financial management training in developing skills and financial self-efficacy
Submitted: 18 July 2018 | Published: 25 October 2018
About the author(s)
Corrinna L. Kirsten, School of Accountancy, Faculty of Economic and Management Sciences, Stellenbosch University, South AfricaAbstract
Background: Financial management is an essential management function for any small business. Short-term financial management is especially crucial for start-ups and established businesses. Owners of small businesses in South Africa often need to perform this function themselves; however, many do not possess the skills and practices required to perform this function effectively. Financial self-efficacy acts as an important motivating factor in managing the finances of a business. Focused training is important in developing financial management skills, but little research has been conducted to determine whether this type of training improves financial management skills and financial self-efficacy.
Aim: To determine whether a tailor-made financial management training course improves the development of short-term financial management skills and financial self-efficacy of small business owners in South Africa.
Setting: This study sampled small business owners who attended a tailor-made financial management training course that focused on short-term financial management principles.
Method: A quasi-experimental study using a pre-test–post-test single-group design was applied using self-administered questionnaires.
Results: The results from a one-tailed paired-sample t-test show that the training course significantly improved both the development of short-term financial management skills and the financial self-efficacy of participants.
Conclusion: Tailor-made financial management training courses enhance the short-term financial management skills of owners of small businesses and also improve their financial self-efficacy. By improving both their skills and self-efficacy, small business owners are likely to make better financial decisions and be more motivated to implement financial management practices.
Keywords
Metrics
Total abstract views: 4598Total article views: 6357
Crossref Citations
1. Innovative Strategies For Social-Economic Development Financial Strategies In The Development Country
Chukwu Anthony Ogochukwu, Karina Kasztelnik
SocioEconomic Challenges vol: 5 issue: 1 first page: 44 year: 2021
doi: 10.21272/sec.5(1).44-65.2021