FINANCIAL LITERACY AND FINANCIAL INCLUSION FOR ENTREPRENEURSHIP SUCCESS IN NIGERIA
Keywords:
Decision-making, Entrepreneurial success, Financial Inclusion, Financial literacy, Small Business Management, Resource allocationAbstract
The primary issue addressed in this study is the vital connection between financial literacy,
financial inclusion, and entrepreneurial success in Nigeria. This research underscores the
importance of financial knowledge in the effective management and growth of small businesses.
Primary data was collected through a readily administered questionnaire, surveying a diverse
sample of 385 entrepreneurs to assess their financial literacy levels and corresponding business
performance metrics, including profitability, revenue growth, and sustainability. Data analysis was
performed using STATA 14, facilitating a thorough statistical evaluation of the relationships
between variables. The findings reveal a significant positive correlation between financial literacy
and entrepreneurial success, with a Prob > chi2 value of 0.0000, indicating that both financial
literacy and financial inclusion have a substantial impact on the growth and development of
entrepreneurship in Nigeria. Key issues identified include the widespread lack of financial
education, limited access to financial services, and socio-economic barriers that disproportionately
affect entrepreneurs, particularly women and marginalized groups. Qualitative interviews further
highlight the challenges faced by individuals with low financial literacy, emphasizing the urgent
need for targeted educational programs. This research contributes to the understanding of how
enhancing financial literacy can promote entrepreneurial success and advocates for comprehensive
financial education initiatives to support emerging entrepreneurs in Nigeria.