Financial Literacy and Saving Behavior Among Micro and Small Enterprise Owners in Kampala, Uganda: the Moderating Role of Social Influence

Journal of Economics, Finance and Accounting Studies

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Field Value
 
Title Financial Literacy and Saving Behavior Among Micro and Small Enterprise Owners in Kampala, Uganda: the Moderating Role of Social Influence
 
Creator Mpaata, Eva
Koskei, Naomi
Saina, Ernest
 
Subject Social Influence
financial literacy
saving behavior
Kampala
Uganda
 
Description Savings behavior is particularly critical for owners of micro and small enterprises that have minimal access to credit and yet play a crucial role in both production and employment. This is clear, since they can start small investment over time. This is possible only when saving is planned and embraced. Nevertheless, the individual management of their money will influence the sustainability of these micro and small enterprises. This is especially true in Uganda for individuals in Sub-Saharan Africa (SSA), where 3/5 small enterprises are collapsing due to their poor saving behavior, which is compounded by the lack of access to credit. The capacity for one to manage money effectively requires cautiousness in expenditure decisions in saving money hence assisting them to improve and be able to sustain their businesses. Using cross-sectional data from 395 micro and small enterprise owners from Kampala, Uganda, this study, examines the moderating effect of social influence on the relationship between financial literacy and saving behavior among micro and small enterprise owners in Kampala, Uganda. Process macro is used as a statistical tool to analyze the data collected by the use of a questionnaire. The study was guided by both the social cognitive and social capital theories. Results indicate that both financial literacy and social influence significantly predict saving behavior. Besides, the relationship between financial literacy and saving behavior is moderated by social influence. The results further indicate that much as social capital is a necessity, too much of it may dilute relationship between financial literacy and savings behavior. These results bring additional insights to both research and theory.
 
Publisher Al-Kindi Center for Research and Development
 
Date 2020-06-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://al-kindipublisher.com/index.php/jefas/article/view/10
 
Source Journal of Economics, Finance and Accounting Studies ; Vol. 2 No. 1 (2020): Journal of Economics, Finance and Accounting Studies; 22-34
2709-0809
 
Language eng
 
Relation https://al-kindipublisher.com/index.php/jefas/article/view/10/46
 
Rights Copyright (c) 2020 Journal of Economics, Finance and Accounting Studies
https://creativecommons.org/licenses/by-nc/4.0
 

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