Mugoya, Micheal2025-06-172025-06-172024-10Mugoya, M. (2024). Dynamic capabilities, financial literacy and financial resilience among small and medium enterprises in Kampala Capital Cityhttps://hdl.handle.net/20.500.12504/2470xiii, 88 p.The study focused on Dynamic Capabilities, Financial Literacy and Financial Resilience in SMEs in Kampala Capital City. The study was guided by four objectives, which are to; assess the relationship between dynamic capabilities and financial resilience of SMEs, establish the relationship between dynamic capabilities and financial literacy of SMEs, examine the relationship between financial literacy and financial resilience of SMEs and assess the mediating role of financial literacy on the relationship between dynamic capabilities and financial resilience of SMEs. The study employed a cross-sectional survey research design with a quantitative research approach. Out 76639 SMEs, the study targeted sample size 382 participants who were determined following (Krejcie & Morgan, 1970) statistical table but 274 participants managed to respond back showing a response rate of 71.7 percent. The respondents were selected using a simple random sampling technique. Data was collected using a closed-ended questionnaire and analysis was done using Social Package for Social Scientists to generate means, standard deviation, correlation, and regression. The study findings revealed that there was a positive and significant relationship between dynamic capabilities and financial resilience at (r =.355**, p<.05), a significant and positive relationship between the financial literacy and financial resilience of SMEs at (r = .577**, p<.05) and lastly, there was a positive and significant relationship between dynamic capabilities and financial literacy at (r =.448**, p<.05). The linear regression analysis revealed that dynamic capability influenced financial resilience by (B = .338, p=.000 <0.05) while financial literacy influenced financial resilience by (B =.513, p=.000 <0.05). Multiple regression analysis revealed that demographic characteristics predicted financial resilience by only 0.05 percent while a combination of demographic characteristics, dynamic capabilities and financial literacy positively predicated financial resilience of SMEs with 33.7 percent. The study concluded that financial literacy was the major predictor of financial resilience of SMEs. It was recommended that future researchers should incorporate a mixed-methods approach and employ proxy measures to complement self-reporting data and reduce the impact of response bias. Ministry of Education and Sports should establish and collaborate with all education institutions to integrate financial education into the school curriculum. Ministry of Finance, Planning and Economic Development should design and implement training programmes aimed at enhancing the financial literacy of entrepreneurs. SME owners and managers should to prioritize and invest in the development of dynamic capabilities by fostering a proactive approach, embracing change, encouraging innovation, and strategically allocating resources. SME owners and managers ought to invest in improving their financial literacy together with their employees through further studies. Finally, there is a need to integrate financial literacy training programmes into business dynamic capability frameworks.enSmall businessMedium-sized businessesFinancial literacyFinancial securityUgandaThesis