Financial Literacy Skills And The Profitability Of Micro, Small And Medium Enterprises In Kano Metropolis

Abstract

This study examined the impact of financial literacy skills on the profitability of some selected Micro, Small and Medium Enterprises (MSMEs) in Kano metropolis. Specifically, the study examined the effect of Book keeping skill, Budgeting skill, and Cash flow skill on the profitability of some selected Micro, Small and Medium Enterprises in Kano Metropolis. A survey was conducted using questionnaire as the instrument. A questionnaire was administered on a sample of 200 Owners / Managers of MSMEs in the study area, out of which 168 properly filled questionnaires were retained for analysis. Both descriptive statistics and regression analysis were employed and the findings revealed that book Keeping skills, budgeting skills and cash flow skills have significant impact on the profitability of MSMEs in Kano metropolis. The study recommended that more awareness should be created for MSME owners on the importance of participating in financial literacy programmes and financial institutions should also take their service closer to MSMEs.