The Mediating Role of Financial Literacy Skills on the Relationship between Entrepreneurial Skills and Performance of Small-Scale Businesses in Maiduguri

Abstract

The study examined the mediating role of financial literacy skills on the relationship between 
entrepreneurial skills and SSBs performance in Maiduguri Metropolis. The population of the study 
is made up of 538 SSBs in Maiduguri Metropolis. 229 sample for the study was obtained using 
sample size determination by Krejcie and Morgan. Data for the study was collected from the 
owners/managers of the SSBs by employing structured questionnaires on 5-point Likert scale. The 
data was analysed by using SPSS 25 and Smart-PLS 3. The findings from the study discovered 
that, in the direct relationship, entrepreneurial skills are insignificantly related to SSBs 
performance, while financial literacy skills are directly and significantly related to SSBs 
performance. Concerning the mediating role of financial literacy skills, it was found that there is a 
positive and significant mediating role of financial literacy skills on the relationship between 
entrepreneurial skills and SSBs performance. Therefore, policymakers and other stakeholders 
should enhance the entrepreneurial skills and financial literacy skills of the SSBs via appropriate 
policies and training programmes. Equally, the government should be able to determine and deliver 
precise training packages to improve the performance of the SSBs. The SSBs should endeavour to 
place more effort by learning and embracing entrepreneurial skills and financial literacy skills that 
might improve their performance.