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THE IMPACT OF FINANCIAL LITERACY ON THE PROFITABILITY OF SMALL SCALE ENTERPRISES IN CALABAR MUNICIPALITY, CROSS RIVER STATE

SME/ENTREPRENEURSHIP UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

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ABSTRACT

The focus of this research is on the impact of financial literacy on the profitability of some small scale enterprises in Calabar Municipality, Cross River State. An enquiry into their level of adoption of financial literacy was also studied. A review of related literatures was carried out to examine the extent of work done in the field. A carefully structured questionnaire was used to collected data on the level of adoption of financial literacy and also a financial literacy test. Stratified random sampling was adopted to divide the small scale enterprises into ten (10) strata, thereafter random sampling technique was employed. A sample of one hundred and fifty (150) respondents was used to carry out the study, which encompasses the different strata. One way analysis of variance (ANOVA) and Dependent T-test at 5% level of significance was used in the analysis of the research data. The result shows that the level of adoption of financial literacy by small scale enterprises in Calabar Municipality is low and that utilization of accounting records significantly influences their profitability. Thus, conclusion, recommendations and suggestions for further studies were proffered.

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