The impact of entrepreneurial competence on financial literacy of small enterprises :

Abstract

The study was to examine the impact of entrepreneurial competence on financial literacy of SMEs in Pallisa town council. Specifically, the study sought to determine the effect of personnel competence on financial literacy, to determine the effect of managerial competence on financial literacy, and to determine the effect of innovation competence on financial literacy. The study used descriptive research design with a study population of 36 respondents. Data was collected from the 34 respondents and using self-administered questionnaires as the key data collection instruments. The findings show that personal competence, managerial competence and innovation competence significantly affects financial literacy in Pallisa town council. When personal competence is enhanced, work productivity goes up and this allows key financial literacy skills to be quickly grasped. Managerial competence is an integral part of individual competences, but these have a direct bearing on the welfare of the organization, this need to be polished up to enable increased productivity. The findings from the study show that personal competence has a positive effect on financial literacy. This was also similar in that managerial competence has a positive effect on financial literacy. It was recommended that there is need to conduct trainings that utilize print media and social media to teach employees key competences regarding personal finance so as to increase on financial literacy, Managers must strive to build extra capacity in key areas regarding financial literacy and Innovation and personal creativity must be encouraged by use of creative thinking and facing new challenges. The study had the limitation of the methods, and area of study being limited to Pallisa. Future studies can consider a more qualitative approach and use cross country contexts to investigate.