Success factors for financial education targeted at small and micro-enterprise owners–a South African outlook

A lack of owner financial literacy is closely linked to major challenges faced by small and micro-enterprises. Although financial education is widely promoted as a solution, its effectiveness is questioned. This sequential exploratory mixed-methods study, grounded in transformative learning and behavioural finance theory, sought to identify success factors for financial education aimed at small and micro-enterprise owners. An inductive thematic analysis of 63 SLR sources identified 10 success factors. These were tested through a financial education intervention involving South African enterprise owners. Quantitative analysis of questionnaire data revealed improvements of 74% in financial awareness and 57% in financial behaviour, alongside a reduction of over 20% in behavioural biases. However, basic calculation skills improved by only 16%. Focus group interviews explored participants’ perceptions of factors influencing the intervention’s success or limitations. Triangulation of quantitative and qualitative findings revealed 13 success factors. Participants identified a relevant curriculum, high-quality content, and a competent facilitator as the most critical factors, while delivery method was viewed as least important. This study presents a consolidated framework of success factors for financial education, providing policymakers and stakeholders with practical guidance on designing, evaluating, and tailoring financial education initiatives. Continuous financial education is recommended to enhance skills retention.