Title: Financial Literacy And Generational Wealth Of Agro-Based Smes In Riversstate, Nigeria
Authors: Etu, Matilda Adesuwa and B. Chima Onuoha
Volume: 10
Issue: 1
Pages: 164-174
Publication Date: 2026/01/28
Abstract:
This research aimed to investigate the relationship among financial planning, risk management knowledge, asset creation, and business continuity in agro-based SMEs located in Rivers State, Nigeria. This research addresses the persistent challenge of low financial resilience among SMEs and their susceptibility to economic shocks, primarily attributed to insufficient planning and a lack of knowledge regarding risk management techniques. The study was structured around a singular aim, four objectives, four research questions, and four hypotheses to address this issue. Financial literacy served as one of the dimensions of financial literacy, encompassing dimensions like budgeting and investment planning. Risk management knowledge constituted the second dimension, which includes risk identification and mitigation strategies. The measures of the dependent variable generational wealth employed were asset accumulation and business continuity. The research employed a quantitative methodology and a cross-sectional survey design, utilising structured questionnaires distributed to 150 participants selected from agro-based SMEs in Rivers State. A total of 136 usable responses were analysed. The hypotheses were evaluated through the Spearman Rank Order Correlation Coefficient utilising SPSS software. The findings indicate that financial planning is positively and significantly associated with asset accumulation and business continuity. Additionally, knowledge of risk management also demonstrates a significant relationship with both asset accumulation and business continuity. It is recommended that SMEs adopt effective financial planning mechanisms to accumulate sustainable assets, while incorporating risk management systems to ensure continuity amid uncertainties.