Financial literacy and growth of youth led entrepreneurial ventures in luwero district

Abstract

Drawing on the Resource Based Theory, this study examined the effect of financia11 literacy on growth of youth led entrepreneurial ventures in Luwero district of Uganda. The study was guided by four objectives that is; to examine the effect of book keeping literacy on the growth of youth led entrepreneurial ventures, to examine the effect of savings literacy on the growth of youth led entrepreneurial ventures, to examine the effect of debt literacy on the growth of youth led entrepreneurial ventures and to examine the effect of financial resources accessibility on growth of youth led entrepreneurial ventures. A case study design was adopted and a sample of 121 was selected from all 175 youth entrepreneurial ventures that were established in Luwero district under YLP. The main study instrument was a questionnaire which comprised of Likert-type scale questions on the .main variables of the study. The data was analyzed using both descriptive and inferential statistics. The findings of the study indicated that financial literacy had a statistically significant effect on growth of youth entrepreneurial ventures. Further the study established that book keeping literacy had a statistically significant positive effect on growth of youth entrepreneurial ventures. The study also revealed that savings literacy had a statistically significant effect on growth of youth entrepreneurial ventures. In the same vein, debt management literacy had a statistically significant effect on growth of youth entrepreneurial ventures. Finally, the study revealed that financial resource accessibility has a low but significant effect on growth of youth led entrepreneurial ventures. Future research should include more intervening and moderating variables and study this effect, and further research may conduct longitudinal studies that may study the effect over a long period of time.