The Influence of Financial Literacy on the Growth of SME—The Case of NERBA, Bragança, Portugal

Abstract

The present work focused on the study of a group of small companies associated with NERBA—Business Association of the city of Bragança, Portugal. The objective was to evaluate, in terms of business management, what is the influence of financial literacy on the growth of small enterprises. The selected companies to participate in the study follow a non-probability sampling. In addition, these companies maintained a sustainable growth in their business in recent years, and the choice was done by the association itself, so the research was only concerned with data collection and analysis of the results. In this way, the work sought to better understand the companies, understand their structure, understand the profile of each manager, and understand their level of education and the financial literacy knowledge of each. At the end of the study, it was possible to see that, in fact, as expected, managers with a greater number of correct answers to questions about financial literacy were responsible for the companies that obtained the highest earnings related to the turnover of the business.