THE INFLUENCE OF FINANCIAL LITERACY ON THE PERFORMANCE OF SMES USING SOME SMES IN BAUCHI METROPOLIS

This study examined the impact of financial literacy, financial behaviour, and financial attitude on the performance of Small and Medium-Sized Enterprises (SMEs) in Bauchi Metropolis. The study adopted a descriptive survey design, utilizing a structured questionnaire administered to 223 SME operators, out of which 174 were duly completed and returned, representing a response rate of 78%. Data were analyzed using descriptive statistics such as mean and standard deviation. The findings revealed that financial literacy significantly enhances SME performance through improved budgeting, record-keeping, and strategic decision-making. Financial behaviour was also found to play a critical role in ensuring business sustainability, as practices such as consistent expense tracking, prudent cash management, and timely debt repayment contributed to overall performance. Furthermore, financial attitude was observed to influence business stability, with positive orientation, long-term financial commitment, and openness to advice being key determinants of success. The study concluded that a combination of sound financial literacy, responsible financial behaviour, and positive financial attitude significantly improves SME growth and profitability. It was recommended that regular financial training and awareness programmes be organized for SME owners to strengthen their financial competencies and ensure long-term sustainability. Keywords: Financial Literacy, Financial Behaviour, Financial Attitude, SME Performance, Bauchi Metropolis.