USE OF TECHNOLOGY AND FINANCIAL LITERACY ON SME PRACTICES AND PERFORMANCE

Authors: Dr. Olurotimi Ogunwale, Dr. Isibor Areghan, Dr. Yimka S. A. Alalade & Dr. Tolulope Omosebi

ABSTRACT

SMEs tend to face uncommon barriers in achieving entrepreneurial success especially in emerging economies. This study, conducted a research on the impact of SME financial literacy and use of technology on practice of record keeping in relation to business performance, the ordinary least Regression analysis is used to analyse the influence of these variables on each other. The research conducted shows a significant relationship between the firm’s use of technology to its record keeping practices and performance, and also a positive significant relationship with financial literacy. The study also found a significant relationship between financial literacy and firm book keeping practice; it suggests the dual role of financial literacy and use of technology for improving SMEs financial practices in Nigeria.

Keywords: Technology; Financial Literacy; SME; Financial technology

REFERENCES

  • A. Aremu and S. L. Adeyemi, “Small and medium scale enterprises as a survival strategy for employment generation in Nigeria,” Journal of sustainable development, vol. 4, p. 200, 2011.
  • Forester, High-tech society: the story of the information technology revolution: MIT Press, 1987.
  • Iansiti and K. R. Lakhani, “Digital ubiquity:: How connections, sensors, and data are revolutionising business,” Harvard Business Review, vol. 92, p. 19, 2014.
  • Tarutė and R. Gatautis, “ICT impact on SMEs performance,” Procedia-Social and Behavioral Sciences, vol. 110, pp. 1218-1225, 2014. \
  • A. A. Kumar, “Financial Literacy awareness among SME‟s in Western Division of Fiji,” EPH-International Journal of Educational Research (ISSN: 2208-2204), vol. 1, pp. 12-27, 2017.
  • Olawale, “The financial literacy of Micro-Entrepreneurs in South Africa,” Journal of social sciences, vol. 42, p. 7, 2014.
  • Wise, “The impact of financial literacy on new venture survival,” International Journal of Business and Management, vol. 8, p. 30, 2013.
  • T.-P. Liang, J.-J. You, and C.-C. Liu, “A resource-based perspective on information technology and firm performance: a meta-analysis,” Industrial Management & Data Systems, vol. 110, pp. 1138-1158, 2010.
  • M. Oyeku, O. Oduyoye, O. Asikhia, M. Kabuoh, and G. Elemo, “On the entrepreneurial success of small and medium enterprises (SMEs): A conceptual and theoretical framework,” Journal of Economics and Sustainable Development, vol. 5, pp. 14-23, 2014.
  • Olurotimi, O. & Isibor, A. A. (2024a). Impact of credit risk management on the performance of Nigerian deposit money banks: An analysis from 2010 to 2020. Asian Journal of Advanced Research and Reports, 18(10), 28 – 41
  • Olurotimi, O., Isibor, A. A., Ogbebor, P. I. & Lawal, E. O. (2024). Achieving sustainable national economic development using government monetary policy, The Seybold Report, DOI: 10.5281/zenodo.13744808
  • Olurotimi, O. & Isibor, A. A. (2024b). Internal control and firms’ financial performance in Nigeria: A study of selected manufacturing firms. Saudi Journal of Economics and Finance, 8(9): 315-323.
  • Fariselli, C. Oughton, C. Picory, and R. Sugden, “Electronic commerce and the future for SMEs in a global market-place: Networking and public policies,” Small Business Economics, vol. 12, pp. 261-275, 1999.
  • Premkumar and M. Roberts, “Adoption of new information technologies in rural small businesses,” Omega, vol. 27, pp. 467-484, 1999.
  • A. Eniola and H. Entebang, “SME firm performance-financial innovation and challenges,” Procedia-Social and Behavioral Sciences, vol. 195, pp. 334-342, 2015.
  • J. Servon and R. Kaestner, “Consumer financial literacy and the impact of online banking on the financial behaviour of lower‐income bank customers,” Journal of Consumer Affairs, vol. 42, pp. 271-305, 2008.
  • B. Mabula and H. D. Ping “Use of technology and financial literacy on SMEs practices and performance in developing economies,” Internal Journal of Advanced Computer Science and Application, Vol 9, No 6, 2018