Financial Literacy Impact and the Micro and Medium Scale Enterprises Profitability Owned by Students in Nasarawa State

Abstract

The study investigated on the financial literacy’s impact, and financially mental attitude and behaviour implicate the students owned’ profitable business Micro and Small Enterprises (MMSE’s) in Nasarawa State University Keffi.  The target population for this study was the estimated population of 100 MSE’s owned by students in the institution. Almost 60 respondents were chosen through simple random sampling technique in order to have sample size in the study. Primary data was used as a source of data to answer the research questions through distribution of questionnaires to respondents. The result showed that that financial knowledge does not significantly affect profitability. But, the MMSE’s profitability owned by students has significantly affected by financial behavior and attitude. The study recommends that government organisations, in collaboration with micro, medium and large deposit money institutions, could process financially educational programmes for enhancing mental know-how within the gaps in the market in terms of funding effectiveness to new enterprises. This will inspire MSEs to expand and grow in areas where they now lack. Financially educational programmes would be benefitted for firms’ expansion and socio-economic growth, as MSEs contribute significantly to the economies in which they exist.