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Social Influence and Saving Behavior among small business owners in Uganda: The mediating role of Financial Literacy

Author

Listed:
  • Eva MPAATA
  • Naomy KOSKEI
  • Ernest SAINA

    (Moi University
    Moi University
    Moi University)

Abstract

The aim of this study was to examine the direct and indirect effect of social influence and financial literacy on saving behavior Explanatory research design and systematic sampling technique was used to collect data with the aid of a questionnaire from a sample size of 430 micro and small enterprise owners in Kampala, Uganda. Reliability test of the research instrument was done by the use of Cronbach alpha. In order to test the hypothesis, and the mediation effect, bootstrapping procedure was followed by testing the direct and indirect effect. The findings show that the connection between social impact and saving behavior is mediated by financial literacy, thus providing new information in research literature on emerging economies where social influence does not encourage saving behavior, hence a need for these economies to adopt financial literacy. Finance scholars have to recognize the central role of financial literacy through financial workshops/seminars, trainings in order to nurture individuals into appropriate saving instruments.

Suggested Citation

  • Eva MPAATA & Naomy KOSKEI & Ernest SAINA, 2021. "Social Influence and Saving Behavior among small business owners in Uganda: The mediating role of Financial Literacy," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 5(1), pages 17-41.
    • Handle: RePEc:trp:01jefa:jefa0043
    DOI: 10.1991/jefa.v5i1.a39
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    References listed on IDEAS

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    More about this item

    Keywords

    Social Influence; Financial Literacy; Saving Behavior.;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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