Social Influence and Saving Behavior among small business owners in Uganda: The mediating role of Financial Literacy

Eva Mpaata, Naomy Koskei and Ernest Saina ()
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Ernest Saina: Moi University

Journal of Economics and Financial Analysis, 2021, vol. 5, issue 1, 17-41

Abstract: The aim of this study was to examine the direct and indirect effect of social influence and financial literacy on saving behavior Explanatory research design and systematic sampling technique was used to collect data with the aid of a questionnaire from a sample size of 430 micro and small enterprise owners in Kampala, Uganda. Reliability test of the research instrument was done by the use of Cronbach alpha. In order to test the hypothesis, and the mediation effect, bootstrapping procedure was followed by testing the direct and indirect effect. The findings show that the connection between social impact and saving behavior is mediated by financial literacy, thus providing new information in research literature on emerging economies where social influence does not encourage saving behavior, hence a need for these economies to adopt financial literacy. Finance scholars have to recognize the central role of financial literacy through financial workshops/seminars, trainings in order to nurture individuals into appropriate saving instruments.

Keywords: Social Influence; Financial Literacy; Saving Behavior. (search for similar items in EconPapers)
JEL-codes: A13 G41 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:trp:01jefa:jefa0043

DOI: 10.1991/jefa.v5i1.a39

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