Assessing the role of education and financial literacy in shaping the success of spaza shops: Case study of Gamalakhe Township, KwaZulu-Natal, South Africa

Mkhize, Mondli B. and Mugova, Shame (2025) Assessing the role of education and financial literacy in shaping the success of spaza shops: Case study of Gamalakhe Township, KwaZulu-Natal, South Africa. The Southern African Journal of Entrepreneurship and Small Business Management, 17 (1). ISSN 1015-3977

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Abstract

Background: This study examined how education influences financial literacy (FL) and subsequent business success among spaza shop owners in Gamalakhe Township, KwaZulu-Natal. Aim: This study aimed to investigate whether the level of education is a significant factor in determining the FL skills needed to run spaza shop businesses by surveying 100 spaza shop owners. Setting: The study setting was Gamalakhe Township, KwaZulu-Natal. Methods: The quantitative data were analysed via correlations and ordinal logistic regression. Results: The findings of descriptive statistics and correlations reveal that education significantly predicts FL levels, which in turn drives improved decision-making and business outcomes. Conclusion: The ordinal logistic regression revealed that education level influences the level of FL. Contribution: The findings emphasise the importance of developing experiential learning and mentorship programmes to address FL gaps among township entrepreneurs.

Item Type:	Article
Identification Number:	10.4102/sajesbm.v17i1.1083
Dates:	Date Event 9 May 2025 Accepted 8 August 2025 Published Online
Uncontrolled Keywords:	financial literacy; education level; spaza shops; entrepreneurial success; small business management; township economy; Gamalakhe township; financial decision-making
Subjects:	CAH17 - business and management > CAH17-01 - business and management > CAH17-01-02 - business studies
Divisions:	Business School > Management, Business and Marketing
Depositing User:	Gemma Tonks
Date Deposited:	13 Aug 2025 10:11
Last Modified:	13 Aug 2025 10:11
URI:	https://www.open-access.bcu.ac.uk/id/eprint/16588

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