Abstract:
Financial literacy has been recognized as a crucial skill set essential for the
establishment, management, and prosperity of small and medium-sized
enterprises. Its importance in aiding entrepreneurs to make prudent financial
decisions, particularly in securing external funding for business growth, has
gained prominence. This study sought to explore the influence of financial
literacy on Small and Medium-sized Enterprises' access to finance in Awutu
Senya East Municipality. A sample of 333 participants were selected for the
study utilizing a stratified selection method. Questionnaires were employed in
collecting data. The study employed multiple regression and independentsamples
t-test for the data analysis via the Statistical Package for Social
Sciences Version 22. The study found that financial literacy indicators such as
financial negotiation skills, budgeting skills and debt management skills
positively influence access to finance. This suggests that financial literacy is
crucial to the ability of small and medium-sized enterprises to acquire
financing. Finally, the result shows that degree of financial literacy of male
owners is greater than that of female owners of small and medium-sized
enterprises. This demonstrates a significant gender gap still exists in financial
literacy, particularly among owners of small and medium-sized enterprises in
Awutu Senya East Municipality. It was recommended that owners should
enroll in financial literacy programs offered by entrepreneurial skill
development groups to gain the knowledge and expertise they need to make
informed financial decisions. Special emphasis should be place on financial
negotiation skill, budgeting skills and debt management skills if the access to
finance by small and medium-sized enterprises is to be improved significantly
