Journal of
African Studies and Development

  • Abbreviation: J. Afr. Stud. Dev
  • Language: English
  • ISSN: 2141-2189
  • DOI: 10.5897/JASD
  • Start Year: 2009
  • Published Articles: 238

Full Length Research Paper

Financial literacy and financial behaviour of micro and small enterprises in the Sunyani Municipality, Ghana

Mabel Ameyaw
  • Mabel Ameyaw
  • Department of African Studies, Faculty of Social Science, University of Education, Winneba, Ghana.
  • Google Scholar

  •  Received: 15 July 2022
  •  Accepted: 16 September 2022
  •  Published: 30 September 2022


This study sought to examine the relationship between financial literacy and financial behavior among owners/managers of MSEs in the Sunyani Municipality. Primarily, the research examined the financial literacy level as well as the extent to which financial knowledge informs financial behaviour and financial attitude which will aid in making a rational decision for their business. In accordance with the study’s objective, the study employed primary data and used a quantitative approach as well as a descriptive survey design to randomly sample 230 owners/managers from five categories of MSEs in the Sunyani Municipality. From the findings, it was revealed that owners/managers of MSEs who had high levels of financial knowledge exhibited good financial behaviour and demonstrated a good financial attitude as compared to those with lower levels of financial knowledge. The positive outcomes of being financially literate were driven by behaviour such as planning expenditure and building up a financial safety net. Since financial literacy is necessary for the demonstration of good financial behaviour and attitude, it was recommended to MSEs strive for financial knowledge to enable them make good financial decisions. Again, any policy that aims at the growth and development of MSEs must include financial education since it is the key to good financial behaviour and attitudes that aids owners/managers to make good decisions.


Key words: Financial literacy, knowledge, behaviour, attitude, micro and small-scale enterprise, Ghana.