Evaluating the Effect of Financial Literacy on the Performance of Micro Businesses

The objective of this study was to investigate the effects of financial literacy on the financial performance of microbusiness. After exploring the related literature on the issue, primary data were collected effectively from 51 small businesses operators in Cameroon using questionnaires, multivariate Regression model was justifiably used for inferential verification. This study argues that all the three constructs of financial literacy positively influencing the performance of microbusinesses. The influence of Investment knowledge was positive but insignificant, the effect of saving knowledge was significantly positive and Debt management knowledge has a positive and significant effect on financial performance of microbusiness. Stakeholders wishing to promote the performance of micro businesses have to educate the operators to be well informed of investment, saving and debt management of financial knowledge.