The Impact of Education level on MSE’S Financial Performance: A South African Perspective

An analysis of existing finance literature indicates that demographic factors such as education level are possibly among the main determinants of SME owner-managers’ financial literacy which may affect business financial performance. Therefore, an analysis of the level of education of the owner-manager would most likely give an indication of whether increasing education level results in the increase of financial performance of SMEs. Findings of the study reveals that there is a positive relationship between education level of owner-managers and their financial literacy, and ultimately the financial performance of their SMEs.