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

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.