Socio-Cultural Factors and Financial Literacy Practices of Micro-Entrepreneurs in Kwara State

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Small and medium scale enterprises (SMEs) form the bedrock of significant growth in many developing economies of the world. Owners of SMEs however are influenced by certain socio cultural factors in the bid to making sound financial decisions. Financial literacy is the acquisition of financial skills and knowledge by individuals with a view to earning more, spending less and getting things done appropriately. This paper examined the influence of social cultural factors on the financial literacy practices of micro-entrepreneurs in Kwara State. Religious belief, cultural conception of financial management and group membership served as proxies for socio-cultural factors while book keeping practices and utilization of financial services were proxies for financial literacy practices. Primary darta were obtained from selected micro entrepreneurs across the three senatorial districts of the state. Data were analysed using binary logistic regression and the results showed that culture and group membership have probable significant influence on each of the proxies of financial literacy practices while relgosity was found to be statisitcially insignificant at 10% alpha level. The study therefore recommends that government in conjuction with financial institutions should start to promote various financial education programmes so that micro –entrepreneurs will be able to financial knowledge.



Financial literacy, socio-economic factors, Kwara State


Sakariyahu et al (2016)