Fintech Companies and Financial Literacy as Factors Fostering the Attainment of Smes Sustainability in Lagos State, Nigeria

Abstract

The study examined the attainment of SMEs sustainability through the applicability of fintech companies and financial literacy. Two research questions and a hypothesis were answered and tested for the study. A descriptive research design of correlation type was used. The population comprised 11,463 registered SMEs in Lagos state, Nigeria. The sample size was 386 SMEs using Taro Yamene formula and simple random sampling technique. Researcher developed questionnaires titled: SMEs Sustainability Questionnaire (SMESQ) (r = .84), Fintech Companies Operations Questionnaire (FCOQ) (r = 91) and Financial Literacy Questionnaire (FLQ) (r = .93) were used for data collection. Pearson Product Moment Correlation (PPMC) and regression analysis were used for analyzing and testing the research questions and hypothesis. The findings of the study revealed that there was a positive relationship between fintech companies’ operations through (digital payment systems) (r = .592, p < .05), financial literacy (r = 0.603, p < .05) and SMEs sustainability. It was also found that there was significant composite contribution of explanatory variables on criterion variable R = 0.666, p < .05. The ANOVA results showed that there was significant influence of the explanatory variables on the dependent variables; F (2, 369) = 18.977, p < .05. The study recommended that SMEs should not be reluctant to apply for financial help from the appropriate quota if they need more funding to purchase more advanced Fintech hardware and software. There is a need for training programs on budgeting and planning, debt management, record keeping; saving plans among SMEs and other businesses that seek to promote financial literacy and sustainability.