Financial Literacy Competencies of Women Entrepreneurs in Kenya

Abstract

Research shows high correlation between financial literacy skills and economic outcomes. This paper summarizes findings of a study on financial literacy competencies of women entrepreneurs in Kenya and how these skills affect their economic empowerment. The study used positivist/post positivist and constructivist approaches associated with Pragmatic paradigm. Data from 400 respondents were collected through questionnaires. Data analysis was through the Statistics and Data (STATA) package. Cross-tabulation analysis and chi-square test of independence were used to analyse relationships between variables. Willingness to invest in risky businesses (49.62%), not shopping around (48.74%), low numeric skills (66.92%), and taking loans without considering the cost (74.05%) are undermining women’s economic empowerment demonstrated by the fact that 79.68% of the respondents felt that their financial status was out of control and 83.59% felt uncomfortable about their current debt status. The study was limited to women entrepreneurs in Chuka Constituency who received Uwezo Funds during the 2013/2014 financial year.