INFLUENCE OF FINANCIAL LITERACY AND ACCOUNTING EDUCATION ON ENTREPRENEURIAL SUCCESS OF SMALL BUSINESS OWNERS

Abstract

This paper examined the influence of financial literacy and accounting education on the entrepreneurial success of small business owners. In the contemporary business environment, financial literacy and accounting education have become essential for effective business management and sustainable entrepreneurial success. The relevance of financial literacy and accounting education in enhancing entrepreneurial success cannot be overemphasized, as they equip business owners with the knowledge and skills required to make informed financial decisions, maintain proper records, and manage business resources effectively. The paper highlighted the concepts of financial literacy, accounting education, entrepreneurial success, components of financial literacy, benefits of accounting education to small business owners, and challenges affecting their adoption. The paper identified that financial literacy and accounting education enhance entrepreneurial success through improved record keeping, better financial decision-making, effective capital budgeting, enhanced access to finance, improved risk management, and increased profitability. However, challenges such as limited access to financial education, inadequate accounting knowledge, cultural barriers, low educational attainment, and limited government support hinder their widespread adoption. Conclusion was drawn. The paper recommended that government should develop financial literacy and accounting education programs for small business owners, business owners should invest in financial training, and educational institutions should incorporate practical accounting and financial literacy training into their curricula.