Examining the Effect of Financial Literacy on Household Incomes: A Case of Women Entrepreneurs in Small-Scale Businesses in Bwera Sub-county, Kasese District

Abstract

This study investigated the effectiveness of financial literacy on household incomes among smallscale women entrepreneurs in Kasese District. The study was based on three objectives: assessing the effect of budgeting on household incomes, examining the effect of saving on household incomes, and analysing the effect of investing on household incomes. An explanatory research design with a mixed-method approach was used, involving the collection of quantitative data from 98 women traders in Kasese through a survey questionnaire and interviews with 5 district leaders. The data was analysed using SPSS version 27 and Atlas. ti version 9. The study discovered that budgeting practices (B = 0.428, p =.000), Saving (B = 0.382, p =.001), and Investing practices (B = 0.678, p =.000) have a positive effect on household income among OF women entrepreneurs in Bwera sub-county in Kasese. This implies that efficient budgeting, saving and investing practices can help improve standards of living among women entrepreneurs in in Bwera sub-county. Therefore, the researcher recommends that implementing financial literacy programs for women entrepreneurs, focusing on budgeting, financial planning, and saving. District leadership should provide support through workshops, mentorship, and budgeting tools. It also suggests promoting community-based initiatives to encourage knowledge sharing among women entrepreneurs. The study advises increasing access to formal savings accounts and creating savings groups for saving. Regarding investments, it recommends training women in investment strategies and improving access to investment capital through microfinance and other programs, along with networking opportunities to connect with potential investors and partners.