Evaluation of the financial literacy practices of employees in small and medium enterprises in Uganda: A case of Mutima quality feeds limited

Abstract

The study sought to evaluate the financial literacy practices of employees in small and Medium Enterprises in Uganda using a case study of Mutima Best Quality Feeds Limited. The study was guided by three objectives which include to (i) to assess the level of financial literacy among employees of Mutima Best Quality Feeds Limited (ii) to identify the financial literacy practices adopted by employees of Mutima Best Quality Feeds Limited (iii) to examine the challenges faced by employees of Mutima Best Quality Feeds Limited in implementing financial literacy practices. On Level of financial literacy among employees, it was found out Employees at Mutima Best Quality Feeds show a solid understanding of financial fundamentals, adeptly using financial statements and adhering to budgets. Their grasp on tax obligations and strategic financial resource utilization reflects a proactive and financially astute approach, contributing to the company's growth. On Financial literacy practices adopted by employees of Mutima Best Quality Feeds, findings indicated that the Company displays proactive financial strategies, encompassing budgeting, cash flow management, financial analysis, and forecasting. Moreover, their responsible debt management, employee training, and meticulous compliance reflect a comprehensive and strategic financial approach. On challenges, it was found out that financial education involves limited resources, resistance to new practices, and the complexity of financial concepts. The study underscores the necessity for continuous and accessible financial education programs beyond one-time training to ensure sustained knowledge retention and practical application. The study recommended that there is need to encourage Continuous Financial Education among employees, need to enhance Financial Literacy Training and increase Access to Resources to enhance the level of financial literacy among employees.