<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The importance of financial literacy as a source of information for making financial decisions has been acknowledged, but little research has been done on how it affects SMEs’ attitudes about taking risks. In order to examine the financial literacy and risk-taking behavior of small and medium-sized firms in Ekiti State, Nigeria, the research created an integrated model from a knowledge-based viewpoint. A survey research design was used for this study with a multi-stage sampling procedure. The study analyzed the primary data collected from the questionnaire. 154 managers and owners of SMEs in Ado-Ekiti, Ekiti State, made up the sample. According to the results of multiple regression, financial behavior, knowledge, and attitude all have a positive and substantial impact on how risk-averse small and medium-sized businesses in Ekiti State, Nigeria, are about taking risks. The study’s findings revealed that a high level of financial management literacy has a critical and significant influence on enhancing the entrepreneur’s risk-taking attitude, which leads to the growth of small businesses.</p>
</abstract>

The importance of financial literacy as a source of information for making financial decisions has been acknowledged, but little research has been done on how it affects SMEs’ attitudes about taking risks. In order to examine the financial literacy and risk-taking behavior of small and medium-sized firms in Ekiti State, Nigeria, the research created an integrated model from a knowledge-based viewpoint. A survey research design was used for this study with a multi-stage sampling procedure. The study analyzed the primary data collected from the questionnaire. 154 managers and owners of SMEs in Ado-Ekiti, Ekiti State, made up the sample. According to the results of multiple regression, financial behavior, knowledge, and attitude all have a positive and substantial impact on how risk-averse small and medium-sized businesses in Ekiti State, Nigeria, are about taking risks. The study’s findings revealed that a high level of financial management literacy has a critical and significant influence on enhancing the entrepreneur’s risk-taking attitude, which leads to the growth of small businesses.

Financial Literacy and Entrepreneurial Risk Attitude of Selected Small and Medium Sized Enterprises in Nigeria

University of Lagos, University Road Lagos Mainland Akoka

Management Dynamics in the Knowledge Economy

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The importance of financial literacy as a source of information for making financial decisions has been acknowledged, but little research has been done on how...

Financial Literacy and Entrepreneurial Risk Attitude of Selected Small and Medium Sized Enterprises in Nigeria

Published Online: Jan 01, 2024

Page range: 372 - 384

Received: Feb 21, 2023

Accepted: Jun 07, 2023

DOI: https://doi.org/10.2478/mdke-2023-0023

Keywords
financial literacy, entrepreneurial risk attitude, financial behavior, financial attitude, small and medium sized enterprises

© 2023 Ogorchukwu Augustine Isimoya et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Financial Literacy and Entrepreneurial Risk Attitude of Selected Small and Medium Sized Enterprises in Nigeria

Published Online: Jan 01, 2024

Page range: 372 - 384

Received: Feb 21, 2023

Accepted: Jun 07, 2023

DOI: https://doi.org/10.2478/mdke-2023-0023

Keywordsfinancial literacy, entrepreneurial risk attitude, financial behavior, financial attitude, small and medium sized enterprises

© 2023 Ogorchukwu Augustine Isimoya et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
financial literacy, entrepreneurial risk attitude, financial behavior, financial attitude, small and medium sized enterprises