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Effects of Financial Literacy on Entrepreneurial Success Among Youths in Kabwe District, Zambia

Author

Listed:
  • Chewe, Mannase

    (Kwame Nkrumah University)

  • Mundia, Mukwalikuli

    (Kwame Nkrumah University)

  • Mufalali, Simasiku Mwiya

    (Kwame Nkrumah University)

Abstract

Financial literacy is an important factor influencing the performance and sustainability of youth-owned businesses. This study examined the effects of financial literacy on entrepreneurial success among youth entrepreneurs in Kabwe District, Zambia. Guided by Human Capital Theory, Resource-Based View, and Financial Capability Theory, the study examined financial literacy levels, its contribution to entrepreneurial success, and the influence of financial management practices. A qualitative descriptive case study design was adopted, involving 30 youth entrepreneurs selected through purposive sampling. Data were collected through unstructured interviews and analysed thematically. Findings showed that participants had basic knowledge of budgeting, saving, expenditure monitoring, and record keeping but limited knowledge of taxation, investment, debt management, risk analysis, and long-term financial planning. Financial literacy improved budgeting, cash-flow management, financial decision-making, expenditure control, and business planning. However, limited access to finance, inadequate training, high operating costs, and market competition constrained business growth. The study concludes that financial literacy contributes positively to entrepreneurial success and recommends enhanced financial education, affordable financing, mentorship, and business advisory services for youth entrepreneurs in Kabwe District.

Suggested Citation

  • Chewe, Mannase & Mundia, Mukwalikuli & Mufalali, Simasiku Mwiya, 2026. "Effects of Financial Literacy on Entrepreneurial Success Among Youths in Kabwe District, Zambia," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(5).
    • Handle: RePEc:cwk:ajocsl:2026-071
    DOI: 10.59413/ajocs/v7.i5.4
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    References listed on IDEAS

    as
    1. Adele Atkinson & Flore-Anne Messy, 2012. "Measuring Financial Literacy: Results of the OECD / International Network on Financial Education (INFE) Pilot Study," OECD Working Papers on Finance, Insurance and Private Pensions 15, OECD Publishing.
    2. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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