EFFECT OF FINANCIAL LITERACY ON THE PERFORMANCE OF YOUTH OWNED ENTERPRISES IN FCT, ABUJA
Doshiro, Musa Umar, Ph.D., Vincent Paul, Ph.D. and Taimako, Sunday Anyuabaga
Volume 3 Issue 2
Abstract
The study investigates the effect of financial literacy on the performance of women-owned enterprises in the Federal Capital Territory, Abuja. A survey research design was employed, and the target population consisted of all youthowned enterprises across the six area councils of Abuja. Cochran's for sample size formula was used to determine sample size of 384 respondents, and an additional 20% was added to account for potential non-response, resulting in a final sample of 460 participants. The study employed a purposive sampling technique, and data was collected through a questionnaire structured with five-point Likert scales to assess respondents' opinions. The study data was analyzed using frequencies, simple percentages, and multiple regression test. The results revealed a positive and significant effect of financial knowledge and budgeting on enterprise performance in the Federal Capital Territory, Abuja. Based on these findings, the study recommends that collaborative efforts among government agencies, nongovernmental organizations, and educational institutions should be undertaken to develop and implement targeted financial literacy programs for youth-owned enterprises. These programs should focus on equipping young entrepreneurs with essential financial knowledge and skills, including budgeting, financial planning, and investment strategies, to enhance their financial capabilities. Keywords: Enterprises, Financial Literacy, Performance, Youth Owned Business, Skills
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