Assessing the role of education and financial literacy in shaping the success of spaza shops: Case study of Gamalakhe township, KwaZulu-Natal, South Africa

Mondli Brian Mkhize, Shame Mugova (Corresponding / Lead Author)

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Background: This study examined how education influences financial literacy (FL) and subsequent business success among spaza shop owners in Gamalakhe Township, KwaZulu-Natal.

    Aim: This study aimed to investigate whether the level of education is a significant factor in determining the FL skills needed to run spaza shop businesses by surveying 100 spaza shop owners.

    Setting: The study setting was Gamalakhe Township, KwaZulu-Natal.Methods: The quantitative data were analysed via correlations and ordinal logistic regression.

    Results: The findings of descriptive statistics and correlations reveal that education significantly predicts FL levels, which in turn drives improved decision-making and business outcomes.

    Conclusion: The ordinal logistic regression revealed that education level influences the level of FL. Contribution: The findings emphasise the importance of developing experiential learning and mentorship programmes to address FL gaps among township entrepreneurs
    Original languageEnglish
    JournalThe Southern African Journal of Entrepreneurship and Small Business Management
    Volume17
    Issue number1
    DOIs
    Publication statusPublished (VoR) - 8 Aug 2025

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