THE IMPACT OF FINANCIAL LITERACY OF OWNERS/OWNER- MANAGERS ON THE PERFORMANCE OF SMALL BUSINESSES IN KORONADAL CITY

Financial literacy is viewed as a crucial tool for small business success. It aids in the understanding of the information needed to make everyday decisions with financial impact in day-to-day management. As a result, the objectives of this study are due to the following factors: to examine the financial literacy levels of small business owners/owner-managers in Koronadal City, and to analyze the relationship between these findings and business performance as a measure of economic performance. The research examines the hypothesis that a higher level of financial literacy among small business owners/owner- managers should result in better firm performance. The relevance of the chosen target is driven by the fact that small enterprises constitute the backbone and driving force of Asian economies, according to the Asian Development Bank. The sample for this study is limited to small businesses in Koronadal City and data was collected through questionnaires to determine financial literacy levels and business performance. The findings show that small business owners in Koronadal City have a relatively high level of financial literacy. The evidence also points to a considerable beneficial relationship between financial literacy and business performance. This finding emphasizes the necessity of equipping small business owners with proper financial education to improve their effectiveness as leaders.