Financial literacy, financial capabilities, and sustainable business model practice among small business owners in Nigeria
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Abstract
Description
The study investigates how financial literacy and financial capabilities influence small
firms’ sustainability in Lagos and Ogun States, Nigeria. It employs a survey research
design to collect data from 300 small business owners across the two States. Data
collected were analysed using Structural Equation Modelling (SEM) technique. The
study shows that environmental sustainability, financial sustainability and social
responsibility are significant determinants of small firms’ sustainability in Nigeria.
Financial literacy and financial capabilities practices also have a significant positive
impact on firm sustainability. However, the use of savings product shows a significant
adverse effect on firms’ sustainability. The findings imply that financial literacy
knowledge and practice in small business operations enhance firms’ sustainability. The
study recommends that small firms should incorporate sustainability models into their business operations and improve their financial knowledge to maintain sustainability.
Small business owners should also invest their savings in an appropriate investment
product that suits their risk tolerance.
Keywords
HF Commerce, HG Finance