FINANCIAL LITERACY AND OWNER-MANAGED SMALL- SIZED SERVICE ENTERPRISES PERFORMANCE FOR LAGOS METROPOLIS’ SUSTAINABLE DEVELOPMENT

Tejumade O. Siyanbola
Obafemi Awolowo University

ABSTRACT
The research investigated the nexus between financial literacy of small-sized service
enterprises (SSEs) owners in Lagos metropolis and the performance of such businesses.
Data were collected from 120 business owners through a survey questionnaire. Findings
revealed that a sizable number of owners recognized strong financial knowledge as panacea for
their businesses’ success. Also, significant correlation existed between owners’ financial literacy
and Owner-managed Small-sized Service Enterprises’ (OmSSEs) performance; the former
actually explained more than half of the variation in the latter’s success. In addition, increased
market share, innovative decisions due to adequate financial reporting and financial knowledge
all impacted the businesses’ sustenance in descending order. Finally, the demographics like
gender, age, marriage, educational qualification and ethnicity all influenced business owners’
financial literacy. The study concluded that with adequate financial literacy, OmSSEs can survive
to cause sustainable development in Lagos metropolis, and perhaps, the Nigerian economy.
Keywords: Financial literacy, Owner-managed Small-sized Service Enterprises, Performance, Lagos
Metropolis, Sustainable development