Email this article 
Hide
Show all
Original Research
Financial literacy among small and medium enterprises in Zimbabwe
Submitted: 11 January 2019 | Published: 12 November 2019
About the author(s)
Margaret Mashizha, Graduate School of Business and Leadership, University of KwaZulu-Natal, Durban, South AfricaMabutho Sibanda, School of Economics and Accounting, University of KwaZulu-Natal, Westville Campus, Durban, South Africa
Blessing Maumbe, Faculty of Commerce, Bindura University of Science Education, Bindura, Zimbabwe
Abstract
Background: Global concerns about financial literacy have heightened following the 2007–2008 global financial crisis during which it became apparent that lack of financial literacy was one of the factors that contributed to detrimental financial decision making. This recognition shows that poor financial decisions have a harmful overspill impact on financial and economic stability in a country. Complex financial markets call for exceptional levels of financial competence to enable individuals and business people to make intelligent choices among competing financial products. The study was conducted in two provinces of Zimbabwe, namely, Harare and Mashonaland Central Province among small and medium enterprises (SMEs) who were in operation.
Aim: The study sought to ascertain the level of financial literacy among SMEs business owners and to identify factors that influence the financial literacy levels. The research will give an insight on the state of preparedness of SMEs to participate in highly complicated financial markets. This adds to the existing scarce literature in sub-Saharan Africa on financial literacy levels among SMEs.
Setting: The study was conducted among SMEs who reside in two provinces of Zimbabwe namely Harare Province and Mashonaland Central province.
Methods: A quantitative cross-sectional research design was employed, with data collected by means of a questionnaire administered to a sample of 384 SMEs in Harare and Bindura districts.
Results: Findings revealed lower levels of financial literacy among SMEs. The main variables influencing financial literacy levels were interest rates and inflation.
Conclusion: The study concludes that financial literacy among SMEs is low, and hence there is a need to introduce financial literacy education among small business owners. It is recommended that measurement of financial literacy be extended to different population cohorts to provide baseline data on which policies can be crafted.
Keywords
Metrics
Total abstract views: 7608Total article views: 13144
Crossref Citations
1. FINANCIAL LITERACY, INFORMALITY, AND SMALL BUSINESS OPERATIONAL PERFORMANCE IN ZIMBABWE
Rutendo Taruvinga, Upenyu Sakarombe
Jurnal Ekonomi dan Bisnis Airlangga vol: 34 issue: 1 first page: 165 year: 2024
doi: 10.20473/jeba.V34I12024.165-182
2. Explorando el vínculo entre capacidades financieras y aprendizaje organizacional en pymes: un análisis del estado del arte
Lina Teresa Gómez Gómez, Zoraida Ramírez Gutiérrez
Revista CEA vol: 11 issue: 25 first page: e3113 year: 2025
doi: 10.22430/24223182.3113
3. Assessing the role of education and financial literacy in shaping the success of spaza shops: Case study of Gamalakhe Township, KwaZulu-Natal, South Africa
Mondli B. Mkhize, Shame Mugova
The Southern African Journal of Entrepreneurship and Small Business Management vol: 17 issue: 1 year: 2025
doi: 10.4102/sajesbm.v17i1.1083
4. MSME/SME Financial Literacy: A Systematic Literature Review and Bibliometric Analysis
Rekha IS, Sriram KV, Sumukh Hungund
Journal of the Knowledge Economy vol: 16 issue: 4 first page: 14378 year: 2024
doi: 10.1007/s13132-024-02472-0
5. Linking financial literacy and business performance among SMEs in Somalia from a human capital perspective
Mowlid Mohamed Osman, Abdikani Yusuf Abdulle, Ugas Ali Gutale, Ali Mohamed Ali, Adno Nur Abdi, Abdullahi Abdirihman Mohamed
Discover Sustainability year: 2026
doi: 10.1007/s43621-026-03003-4
6. Assessing the Impact of Financial Literacy on Firm Sustainability: Mediating Role of Financial Access and Firm Growth
Harleen Kaur, Palvi Bansal
SEDME (Small Enterprises Development, Management & Extension Journal): A worldwide window on MSME Studies vol: 47 issue: 4 first page: 299 year: 2020
doi: 10.1177/09708464211044226
7. Determinants of financial literacy: Empirical evidence from micro and small enterprises in India
Anshika, Anju Singla, Girijasankar Mallik
Asia Pacific Management Review vol: 26 issue: 4 first page: 248 year: 2021
doi: 10.1016/j.apmrv.2021.03.001
8. Determinantes de la alfabetización financiera de los empleadores en México
Julio César García Martínez, Daniela Cruz Delgado, Estela Torres Ramírez
Revista Mexicana de Economía y Finanzas vol: 19 issue: 1 first page: 1 year: 2023
doi: 10.21919/remef.v19i1.933
9. Financial literacy environment scan in Mozambique
Atanásio Cossa, Mara Madaleno, Jorge Mota
Asia Pacific Management Review vol: 27 issue: 4 first page: 229 year: 2022
doi: 10.1016/j.apmrv.2021.09.004
10. Do demographic characteristics influence the financial literacy of microentrepreneurs?
Manisha Goyal, Renu Aggarwal, Savita Bhagat
Global Business and Organizational Excellence vol: 44 issue: 1 first page: 32 year: 2024
doi: 10.1002/joe.22265
11. Financial Literacy as a Driver of Governance and Sustainability in Small and Medium Enterprises
Manpreet Kaur, Babli Dhiman
Prabandhan: Indian Journal of Management first page: 27 year: 2025
doi: 10.17010/pijom/2025/v18i11/173882
12. The influence of small and medium-sized enterprise financial literacy on Fintech adoption in a fourth industrial revolution era
Shallone Munongo, David Pooe
South African Journal of Economic and Management Sciences vol: 28 issue: 1 year: 2025
doi: 10.4102/SAJEMS.v28i1.6246
13. The relationship between financial literacy and financial performance of registered small enterprises
Peter Mogale, Mulatu F. Zerihun, S.F Ngonyama, Ngonidzashe Chiranga
International Journal of Business Ecosystem & Strategy (2687-2293) vol: 7 issue: 1 first page: 142 year: 2025
doi: 10.36096/ijbes.v7i1.618
14. Financial literacy in SMEs: a study of knowledge and practices in Umgungundlovu District, Kwa-Zulu Natal, South Africa
Sphume Dlungwane, Bomi Cyril Nomlala
International Journal of Research in Business and Social Science (2147- 4478) vol: 14 issue: 3 first page: 139 year: 2025
doi: 10.20525/ijrbs.v14i3.3760
15. Financial Literacy Role in Enhancing Savings and Financial Performance among SMEs: Evidence from Licensed Hardware Stores in Kasarani Sub-County
Kenneth Njoroge, Dr. John Muhoho, Robert Abayo
African Multidisciplinary Journal of Research vol: 2 issue: 3 first page: 630 year: 2025
doi: 10.71064/spu.amjr.2.3.2025.498