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This research uses cross-sectional data from 430 micro and small enterprise owners in Kampala, Uganda, to examine the indirect effect of financial literacy on the relationship between social influence and savings behavior. In addition, the study examines the moderating effect of self-control on the relationship between financial literacy and savings behavior, in addition to its moderating role in the relationship between social influence and saving behavior. Finally, it studies the moderating effect of self on the indirect effect of financial literacy on the relationship between social influence and saving behavior. The study is motivated by social cognitive and social capital theories. For the analysis of data, Process Macro is used. Results show that social influence significantly predicts savings behavior, and financial literacy partially mediates by this relationship. Furthermore, self-control moderates the relationship between social influence and savings behavior and also the relationship between financial literacy and savings behavior. Lastly, self-control has a conditional impact on the indirect relationship between social influence and savings actions through financial literacy. Such results add new knowledge to literature and theory.

Purpose: This paper highlights the relevance of Savings Behavior and the impact of Social Influence on Savings Behavior in a developing country utilizing both life cycle and economic theories Methodology: This paper presents findings from a thorough review of the literature. Relevant articles were reviewed on both savings behavior and social influence. The articles consisted of both contexts developed versus developing. Findings: The findings suggest that from the developed country context, Social Influence positively affects Savings Behavior, which is not the case for the developing economies that show the negative impact of social influence on savings behavior. Therefore, financial education and literacy training are two of the means of encouraging individual self-control in these developing economies despite their vulnerability to social influence to encourage positive savings behavior. Implications: Individuals are encouraged to save, especially during their productive ages, along with their lifespan. This can be done by obligatory deductions for those that are officially employed. Originality/Value: This paper reveals a bibliography theoretical review on Social Influence and Savings Behavior within the developing country context. The paper presents the puzzle about the effect of Social Influence and Savings Behavior in the emerging economy. The majority of savings behavior research undertaken in the developed economies shows the positive effect of social influence on savings behavior, which is not the case in the developing economies.

This study examined whether self-control moderates the association linking social influence to saving behavior among small business owners. Using a standardized questionnaire, the study utilized a cross-sectional design to collect data from 402 micro and small business owners based in Kampala City. Process macro was used to analyze the interactive impact of self-control and social influence on saving behavior. The findings showed a significant interactive effect of self-control and social influence on saving behavior in Kampala, Uganda. Also, the results showed that the social impact on micro and small business owners' saving actions, at any degree of self-control, has a significant impact. These findings provide the literature and theory in behavioral finance with valuable insights. The study employed a cross-sectional design, rejecting a longitudinal analysis. Furthermore, we focused on Kampala City, leaving out other Ugandan cities. For those with low self-control, the government can implement deliberate government policies that impose savings in national social security funds and scale up the percentage of social security system savings for all individuals with strong self-control. The study points to the moderating effect of self-control on the link between social influence and saving behavior.