The role of financial management training in developing skills and financial self-efficacy

Kirsten, Corrinna L. (2018-10-25)

CITATION: Kirsten, C. L. 2018. The role of financial management training in developing skills and financial self-efficacy. Southern African Journal of Entrepreneurship and Small Business Management, 10(1):a211, doi:10.4102/sajesbm.v10i1.211.

The original publication is available at https://sajesbm.co.za

Publication of this article was funded by the Stellenbosch University Open Access Fund.

Article

Background: Financial management is an essential management function for any small business. Short-term financial management is especially crucial for start-ups and established businesses. Owners of small businesses in South Africa often need to perform this function themselves; however, many do not possess the skills and practices required to perform this function effectively. Financial self-efficacy acts as an important motivating factor in managing the finances of a business. Focused training is important in developing financial management skills, but little research has been conducted to determine whether this type of training improves financial management skills and financial self-efficacy. Aim: To determine whether a tailor-made financial management training course improves the development of short-term financial management skills and financial self-efficacy of small business owners in South Africa. Setting: This study sampled small business owners who attended a tailor-made financial management training course that focused on short-term financial management principles. Method: A quasi-experimental study using a pre-test–post-test single-group design was applied using self-administered questionnaires. Results: The results from a one-tailed paired-sample t-test show that the training course significantly improved both the development of short-term financial management skills and the financial self-efficacy of participants. Conclusion: Tailor-made financial management training courses enhance the short-term financial management skills of owners of small businesses and also improve their financial self-efficacy. By improving both their skills and self-efficacy, small business owners are likely to make better financial decisions and be more motivated to implement financial management practices.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/104644
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