The effect of financial literacy on the sustainability of SMMEs in South Africa Gauteng province.

Ethical Clearance #: 2021_FBMSREC_005

Small, Medium and Micro-sized Enterprises (SMMEs) play a crucial role in South Africa, where they create jobs, prevent poverty eradication, and boost the economy. However, the significance of SMMEs demonstrates a low rate of sustainability. Despite the challenges SMMEs face in combating poverty in the country due to a lack of financial literacy, SMMEs in South Africa are struggling and have limited viability. According to observational studies, financial literacy and business management skills are the primary causes of this failure and the low survival rate (Eniola & Entebang, 2015). A thorough literature review and empirical research were conducted to investigate the effect of financial literacy on the sustainability of SMMEs. The literature review revealed a direct relationship between financial literacy and sustainability and a positive relationship between financial literacy and sustainability.