Onwuegbuzina Ikechukwu John
Financial Literacy and Financial Performance of Micro, Small and Medium Enterprises in Lagos City, Nigeria
University of the Cordilleras
micro small mediumsized enterprises msmes financial literacy performance critical overall survival competitive business environment study addressed following specific objectives determine level financial literacy msme entrepreneurs determine financial performance msmes determine relationship financial literacy financial performance determine problems encountered msmes entrepreneurs management businesses study guided upper echelon theory competency theory study adopted descriptivecorrelational research design total sample 100 msmes conveniently selected inside alaba international market lagos city nigeria questionnaires administered main data collection tool included estimates msme financial statements profitability liquidity leverage years 2017 2018 2019 inferential statistical tool correlation analysis applied test relationship two main variablesthe study found majority entrepreneurs appropriate levels knowledge behavior attitude managing business finances inconsistent putting concepts practice making decisions affected business operations study also found msmes threeyear periods assessed profitable due low sales insufficient support stakeholders low liquidity due poor sales lack cash flow management incurred debts diverted activities add value business operations null hypothesis rejected implying financial literacy significant positive effect financial performance msmes moreover poor access bank financing found major problem impeding expansion growth msmes study area result study concluded proposed recommendations would serve foundation addressing issues raised study thereby assisting msmes improving financial literacy business performance long run