Abstract:
The major aim of this study was to analyse the relationship between financial literacy,
entrepreneurial leadership and entrepreneurial performance of small, medium and
micro-enterprises. A simple random sampling approach was employed in conducting
survey primary data collection using a self-administered structured questionnaire
developed based on a 5-point Likert scale. Sample data collected from two-hundred
and five respondents was first tested for construct validity and scale reliability using
Keiser-Meyer-Olkin measure of sampling adequacy and Cronbach’s alpha criteria,
respectively. Results indicate that the questionnaire’s items passed construct validity
and scale reliability requirements. Exploratory factor analysis and confirmatory factor
analysis were conducted to evaluate total variances explained, factor structures and
associations between observed variables and latent factors using the Statistical
Package for Social Sciences 24 software. Results show that no observed variables
exhibited complex structures, and significant amounts of variances in observed
variables were explained by the analogous constructs. Results obtained from the
structural equation model estimated using Stata 14 software show presence of
significant positive relationship between financial literacy, entrepreneurial leadership
and entrepreneurial performance. Results from the estimated generalised structural
equation model indicate that entrepreneurial leadership moderates the relationship
between financial literacy and entrepreneurial performance of small, medium and
micro-enterprises.
