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October 10, 2025Perspectives in Education0 citationsOpen Access

The role of higher education in the development of financial literacy skills of small business owners in South Africa

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SASher-Lee Arendse-FourieRERegan Everts

Key Points

  • Small business owners face severe challenges due to a lack of financial literacy, making it essential for higher education institutions to intervene.
  • Data from a workshop illustrates that those who engaged in financial literacy training reported a significant increase in their understanding of financial management.
  • The mixed-method study deployed both qualitative and quantitative data collection techniques, highlighting a comprehensive view of business owners' financial skills.
  • Supporting small business owners through tailored financial literacy programs can enhance their entrepreneurial capabilities and contribute to job creation.

Abstract

South Africa faces a critically high unemployment rate due to poor educational attainments and socio-economic disadvantages. The critical need for job creation demands a renewed look at entrepreneurial endeavours. Higher education institutions (HEIs) are critical in producing knowledge for society. Innovative ways of supporting entrepreneurial learning are required to bridge the financial knowledge gap of educationally marginalised socio-economic groups, such as small business owners from impoverished communities. The study aimed to gain insights into the perceptions of small business owners and ascertain the role of HEIs in developing financial literacy skills of small businesses. Data was collected from twelve small business owners who participated in a two-day financial literacy workshop. A phenomenological and mixed-method approach was applied to gather quantitative and qualitative data through questionnaires. Challenges faced by small business owners and the dire need for financial literacy were identified, suggesting an urgent role for HEIs to equip small business owners with the tools necessary to run their businesses effectively. Immense value was derived from the financial literacy workshop, which suggests that HEIs have a role in providing appropriate but tailored training to participants who often do not have an educational background.

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Cite This Study

Arendse-Fourie et al. (2025) studied this question.

synapsesocial.com/papers/68e865117ef2f04ca37e4c35https://doi.org/10.38140/pie.v43i4.8736
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