An Investigation on the Impact of Financial Literacy and the Survival of Small and Medium Scale Enterprises in Yenagoa, Bayelsa State

Abstract

Small and medium scale enterprises bring about development and creates job for the majority of citizens in a society. No economy has ever grown without taking great majors in ensuring their survival in the world. The recent call for foreign workers in Europe and America is to care for this sector of the economy. Nigeria has continued to experience a constant failure of these enterprises over the years, and it has become necessary to seek for solutions to enable the survival and these enterprises and to see them grow to partnerships and limited liability companies. This study takes a look at the use of financial literacy and proper accounting record keeping as a solution to the problem. A questionnaire was used to collect primary data from small and medium scale enterprises in Yenagoa, Bayelsa state. The data was analyzed with simple percentage and correlation. The results show that having a good knowledge of finance and preparing proper books of account has a positive and significant relationship with the survival and profitability of small and medium scale enterprises in Yenagoa, Bayelsa State. The study recommended that small and medium scale enterprises should prepare annual reports and submit them to the ministry of trade and industry for auditing.