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Financial Literacy And Financial Performance Of Small And Medium-Sized Enterprises, Sajiah Yakob, Rubayah Yakob, Hafizuddin-Syah B.A.M., Roslida Zalila Ahmad Rusli
Financial Literacy And Financial Performance Of Small And Medium-Sized Enterprises, Sajiah Yakob, Rubayah Yakob, Hafizuddin-Syah B.A.M., Roslida Zalila Ahmad Rusli
The South East Asian Journal of Management
Research Aims: The study aims to examine the influence of financial literacy on the performance of small and medium-sized enterprises (SMEs) in Malaysia. Design/methodology/approach: The data were obtained from questionnaires distributed to 200 SME managers/owners. Multiple regression analysis was applied to test the influence of financial literacy on SMEs performance by controlling manager profile and SME-specific characteristics. Research Findings: Multiple regression results prove that financial literacy has a positive and significant impact on SMEs' performance. Managers/owners with financial literacy skills understand business-related financial concepts, including debt, savings, takaful, insurance, and investment, which ensure the good performance of their business. Theoretical …