Abstract:
The study focused on the determinants of financial literacy among market women in
the SME sector in Ghana. A total of 145 market women in the SME sector
participated in this study. These samples have been processed and analyzed using
SPSS software version 21 and Microsoft excel. The study found that, out of the three
determinants of financial literacy studied (age, education and income), two of the
determinants (level of education and level of income) of the market women in the
SME sector in Ghana have significant positive relationship with the level of financial
literacy. The study also established that 67.5% of variation in the level of financial
literacy can be explained by the determinants ( age, education and income level) and
the remaining 32.5% of the level of financial literacy are explained by other factors
not captured in the multiple linear regression model. The study recommends to
institutions such as Association of Ghana Industries (AGI), microfinance institutions
and other regulatory bodies to educate market women in the informal sector on the
basic financial concepts in order to boost their risk profile and enable them to access
credit. The study is also limited to the Kumasi metropolis in the Ashanti region,
however there are ten regions in the country hence this will inhibit the generalization
of the findings. Future studies could consider other geographical locations in their
quest to contribute to the subject area.
