Title: Financial Accounting Literacy And The Growth Of Small And Medium Enterprises (Smes) Within Tertiary Institutions In Bayelsa State, Nigeria
Authors: DR. AMANAWA, DAVID EBIEGBERI, DR. DARIUS, BLESSING , DR. AWU, EBIASUODE
Volume: 9
Issue: 4
Pages: 69-75
Publication Date: 2025/04/28
Abstract:
This study explores the critical link between financial accounting literacy and the growth of small and medium enterprises (SMEs) within tertiary institutions in Bayelsa State, Nigeria. SMEs are pivotal to Nigeria's economic landscape, contributing significantly to employment and GDP; however, inadequate financial management practices often hinder their potential. Despite the acknowledged importance, many SME owners exhibit low levels of financial literacy, hampering effective decision-making and operational success. This research aims to assess the current levels of financial accounting literacy among SME owners and understand its impact on their growth trajectories. Employing a secondary data analysis methodology, the study investigates existing literature, government reports, and empirical studies, revealing that many SMEs do not maintain formal financial records due to limited financial knowledge. The findings indicate a positive correlation between financial literacy and various growth metrics, including revenue and sustainability, suggesting that SMEs with greater financial understanding achieve better economic performance. Furthermore, this research highlights the essential role of tertiary institutions in improving financial literacy through integrated educational programs, practical workshops, and partnerships with local SMEs. Despite these advancements, challenges such as resource access and socio-economic constraints persist. The study underscores the urgent need for targeted financial literacy programs and policy interventions to bolster SME growth and sustainability in Bayelsa, contributing to Nigeria's broader economic objectives. Future research should focus on primary data collection to deepen insights into SMEs' specific financial literacy needs and evaluate the long-term effects of educational interventions.