The Impact of Financial Literacy on the Sustainability of Female Entrepreneurship in the Namibian Cosmetic Industry

Abstract

This paper analyses the impact of financial literacy on the sustainability of female entrepreneurship in the Namibian cosmetic industry. The aim of the study was to identify the financial literacy challenges faced by female entrepreneurs in Namibia when managing their businesses; to analyse these challenges, and to provide possible solutions to the challenges identified. Previous studies have concentrated on either the overall financial literacy of the Namibian adult population as a whole or the financial literacy of SMEs in general. To this end, the purpose of the study was to investigate the impact of financial literacy skills on the sustainability of female-run enterprises within the Namibian Cosmetic Industry. The study adopted the correlational research design in which data was processed through the use of the STATA 15 statistical software. The results of the study confirmed that the majority of entrepreneurs in Namibia were young female entrepreneurs who are, for the most part, educated. However, the findings of the study revealed that despite the high levels of education among female entrepreneurs, they still lacked the necessary financial literacy skills. For example, female entrepreneurs had lower financial literacy skills as compared to their male counterparts, and this has had a negative impact on the sustainability of their businesses over the years. It is recommended in this study that, as a matter of urgency, the Namibian Cosmetic Industry and interested parties in this matter, make concerted efforts to provide financial literacy education to their members to equip them with financial literate skills to enable their enterprises to be sustainable.

Keywords: Entrepreneurship, female entrepreneurs, financial literacy, impact, sustainability