Digital financial literacy and financial inclusion of women-led enterprises in Uganda: a case study of Nasuti trading centre in Mukono Municipality

Abstract

This study examined the relationship between digital financial literacy and financial inclusion among women-led enterprises in Nasuti Trading Centre, Mukono Municipality, Uganda. Guided by the Technology Acceptance Model (TAM), the study pursued three specific objectives: (i) to examine the effect of digital financial knowledge on financial inclusion; (ii) to determine the influence of digital financial awareness on financial inclusion; and (iii) to assess the effect of digital financial skills on financial inclusion. A quantitative cross-sectional survey design was employed, targeting 100 women-led enterprises that had fully paid taxes for the financial year 2024, as listed in the Mukono Municipal Council, Municipal Business Register under the Commercial Office. Using the Taro Yamane formula with a 5% margin of error, a sample size of 80 respondents was obtained. Simple random sampling (lottery method) was used to select participants. Data were collected using a self-administered structured questionnaire covering demographics, digital financial knowledge, awareness, skills, and financial inclusion. Validity was ensured through expert review and pre-testing with 10 women (CVI ≥ 0.80); reliability was confirmed using Cronbach's Alpha (α ≥ 0.75). The response rate was 97.5% (78 out of 80 questionnaires completed and returned). Data were analyzed using descriptive statistics (frequencies, means, standard deviations), Pearson correlation, multiple regression, and ANOVA in SPSS version 21. The findings revealed that digital financial skills had the strongest positive correlation with financial inclusion (r = 0.672, p < 0.01), followed by digital financial knowledge (r = 0.621, p < 0.01) and digital financial awareness (r = 0.584, p < 0.01). The multiple regression model showed that the three predictors collectively explained 52.9% of the variance in financial inclusion (R2 = 0.529, F = 6.501, p < 0.001). Digital financial skills contributed the most (β = 0.287), followed by awareness (β = 0.241) and knowledge (β = 0.198). The study concludes that digital financial literacy – particularly practical skills – is a powerful driver of financial inclusion for women-led enterprises in Nasuti Trading Centre. Recommendations focus on targeted hands-on training for skills development, community awareness campaigns, and policy support for digital financial literacy programs. Keywords: Digital financial literacy, financial inclusion, women-led enterprises, Technology Acceptance Model, Uganda, Nasuti Trading Centre.