The Role of Financial Information Literacy in Strategic Decision-Making Effectiveness and Sustainable Performance among Agribusiness Entrepreneurs in Nigeria

Abstract

The current financial environment is characterized by frequent innovations and complex financial products and services and this poses particular challenges for agribusiness entrepreneurs in rural areas. This study examined the sources of financial information available to agribusiness entrepreneurs in rural areas and how financial information literacy impacts performance sustainability and strategic decision-making effectiveness among agribusiness entrepreneurs amid complex and frequent innovations in financial environments in Nigeria. Utilizing a probability sampling approach, 397 respondents were drawn from the pool of agribusiness entrepreneurs registered with the Edo State Agricultural Development Programme for the Central Bank of Nigeria Anchored Borrower’s Programme (ABP) for farming businesses. The hypotheses were tested using linear regression analysis. The results from the demographic analysis suggest that agribusiness entrepreneurs have the highest access to radio adverts/programs on financial matters while television adverts/programs exert the highest persuasive influence on these agribusiness entrepreneurs. The outcomes from this analysis indicate that financial information literacy significantly impacts agribusiness performance sustainability among entrepreneurs. In addition, the proposed link between financial information literacy and strategic decision-making effectiveness among agribusiness entrepreneurs was confirmed. It is concluded that financial information literacy is needed for strategic decision-making effectiveness and performance sustainability among agribusiness entrepreneurs, particularly in rural areas, amid frequent innovative financial products and services.

Financial Literacy and Performance of Micro, Small and Medium Enterprises: A Literature Review

“…Financial literacy contributes to the continuity of MSME businesses (Meressa, 2023). Financial literacy influences the sustainability performance of agribusiness entrepreneurs (Obi-Anike et al, 2023). Financial literacy and the use of technology through social media can overcome financial problems so that they have an impact on obtaining micro credit and the performance of MSMEs (Widyastuti & Hermanto, 2022).…”