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Context: Financial Literacy in South Africa

The use of financial literacy concepts by entrepreneurs in the small and medium enterprise sector in Mpumalanga Province, South Africa

Financial literacy is one of the key factors that impact on the success of small and medium enterprises (SMEs) globally. The objective of this study is to understand the extent to which entrepreneurs in the SME sector pursue the financial literacy concepts, namely, budgeting, investing and borrowing in managing their business finances. The study also aims to establish the relationship between the use of financial literacy concepts and performance of the SMEs. 

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Why Financial Literacy is So Important

"Financial literacy is crucial to help ensure consumers save enough to provide adequate income in retirement while avoiding high levels of debt that might result in bankruptcy and foreclosures. A few years ago, a study from financial services company TIAA-CREF showed that those with high financial literacy plan for retirement and in essence have double the wealth of people who do not plan for retirement. Conversely, those with low financial literacy borrow more, have less wealth and end up paying unnecessary fees for financial products."


Source: Why Financial Literacy is So Important | Investopedia 

http://www.investopedia.com/articles/investing/100615/why-financial-literacy-and-education-so-important.asp#ixzz4t1Kywp9w 

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