Influence of financial literacy training skills on financial performance of equity bank trained women self help groups in Machakos town

Abstract

Women are half the population as the other half cover men worldwide. Women are extremely important in shaping economy matters and it is only fair that they help build the economy as they are dependent on the same. Therefore the need for financial literacy among women self-help groups is a fundamental concern where economies are growing and to the already grown. Performance of women owned businesses has continued to be poor compared to that of their male counterparts. This study sought to find out the influence of financial literacy training on financial performance of Equity bank trained women self-help groups in Machakos Town, Machakos County, to establish if there are financial improvements in women’s lives after going through financial literacy trainings. The general objective of the study was to establish the influence of literacy training on financial performance of women self-help groups in Machakos Town. Specific objectives were to confirm whether saving skills training affect financial performance of women self-help groups in Machakos Town, to find out how budgeting skills training affect financial performance of women self-help group in Machakos Town, to assess how training on debt management influence financial performance of women self-help groups in Machakos Town; to find out how training on bank products and services influence performance of women self-help groups in Machakos Town. The study was guided by two theories namely; The Bruce Tuckman’s Theory of group development and Expectancy Theory. Empirical studies were outlined and existing literature critiqued hence the research gap. Descriptive research design were used in this study. The target population was 33 women self-help groups that are registered and trained by Equity Bank within Machakos County. Census technique was used for accuracy of the subdivisions of the subdivision characteristics of the population. The study used a questionnaire as its data collection instrument. The questionnaire comprised of both open and close ended questions. Analyzed data is presented through graphs and charts. Chi-square test of association was used to analyze the data, results of which was used to answer research questions. The study established that the four variables had a significant positive relationship on financial performance of Equity bank trained women self-help groups in Machakos Town; saving skills training, budget training, debt management training and bank products and services training. The study recommends that stakeholders should continue to impart financial literacy skills on savings, budgeting, debt management and banking products which were found to positively influence women entrepreneurs. The study also recommends further research to investigate the effect of investment of equity bank or other financial institutions on financial performance of women enterprises that the banks’ or institutions’ training programs have.