Investigating the role of financial literacy in the financial sustainability of micro-businesses at Bokamoso Entrepreneurial Centre in Namibia
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Date
2023
Authors
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Journal ISSN
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Publisher
University of Namibia
Abstract
This study investigated the role of financial literacy on the financial sustainability of
micro-businesses at the Bokamoso Entrepreneurial Centre in Namibia. Data was
collected from 18 micro-business owners operational in the Centre. The study
employed a qualitative method using an interview guide to conduct face-to-face
interviews. Results show that 89 percent of micro-business owners are financially
illiterate and this affects the financial sustainability of micro-businesses. Furthermore,
the study revealed that all micro-businesses in the centre do not have access to funds
in the formal financial market. This may be caused by micro-business owners’ low
level of financial literacy that reduces their confidence to participate in the formal
financial market and this influences their financial decision-making. It was also
revealed that politics, high collateral and lack of information are some of the major
factors that prevent micro-businesses from accessing funds. The study also revealed
that 78 percent of micro-business owners have bad financial attitude. As a result, the
study recommends for financial education to be introduced in schools from primary
school level. There is also a need for major players in the financial market to conduct
seminars to create awareness and make information available to the micro-business
owners.
Description
A thesis submitted in partial fulfilment of the requirements for the degree of master in business administration- Finance
Keywords
Financial literacy, Financial sustainability, Micro-businesses, Bokamoso Entrepreneurial Centre, Namibia