Access to Finance, Financial Literacy and Small and Medium-Scale Enterprises Sustainable Performance

A sustainable performance of an organization is an organization that works with a successful management organization by people of the firm who are aware through learning to satisfy customers and other stakeholders' wants and expectations of the firm. Small and medium-sized enterprises (SMEs) have become more significant in global economies. The study sought access to finance, financial literacy, and small and medium-scale enterprises (SMEs’) sustainable performance. The study employed a quantitative descriptive research design with survey questionnaires as the research collection instrument, and the Slovin formula was used in calculating the sample size. The data analysis was based on SPSS and tables. The results show that access to finances has a significant effect on firm sustainability, financial literacy has a positive and significant impact on firms’ sustainability, and financial literacy moderates the relationship between access to finance and firm sustainability. The study suggested that municipal assemblies be used by the government to provide financial education to SMEs, that financial assets be provided to SMEs to help improve their sustainable performance, and that scholars and managers think about how and why financial literacy affects the relationship between access to finance and firm growth in SMEs operating in developed market economies.

A sustainable performance of an organization is an organization that works with a successful management organization by people of the firm who are aware through learning to satisfy customers and other stakeholders' wants and expectations of the firm. Small and medium-sized enterprises (SMEs) have become more significant in global economies. The study sought access to finance, financial literacy, and small and medium-scale enterprises (SMEs’) sustainable performance. The study employed a quantitative descriptive research design with survey questionnaires as the research collection instrument, and the Slovin formula was used in calculating the sample size. The data analysis was based on SPSS and tables. The results show that access to finances has a significant effect on firm sustainability, financial literacy has a positive and significant impact on firms’ sustainability, and financial literacy moderates the relationship between access to finance and firm sustainability. The study suggested that municipal assemblies be used by the government to provide financial education to SMEs, that financial assets be provided to SMEs to help improve their sustainable performance, and that scholars and managers think about how and why financial literacy affects the relationship between access to finance and firm growth in SMEs operating in developed market economies.