Abstract:
Financial literacy and behaviour have attracted increasing attention in both the
developed and developing world due to its role in financial decision and their
influence on savings habits of Small and Medium Enterprises (SMEs) owners.
This study examined the influence of financial literacy, financial behaviour on
savings habits of SMEs owners in the Awutu Senya District of Ghana. The study
used across-section data set within a descriptive research design. The study
employed quantitative approach in the study and data collection was done using
questionnaire. A total of 201 SMEs owners were selected using censes method.
Analyses of the data were done by using both descriptive and influential
analyses. The study revealed that financial behaviour has positive influence on
savings habit of SME owners. In addition, financial literacy has positive
influence on savings habit of SMEs owners. Furthermore, the study revealed that
age of the SME owners has positive influence savings habit of SME owners.
Finally, educational level of the SME owner is also positively related to savings
habit of the SME owners. The study therefore recommends that government and
NBSSI must offer financial education to SME owners which will help their
business operations. Also, National Commission for Civic Education should
establish Financial Literacy Information Sharing Group to provide financial
literacy education to SMEs owners. Also, government should set up special
financial institutions that will cater for the financial needs of SME owners by
giving soft loans in order to expand their business.
