article · Cogent Economics & Finance
Small and medium enterprises in the Central Region of Ghana rely heavily on digital platforms, with Mobile Money emerging as the most widely used service. An investigation of 400 enterprises across Cape Coast, Mankessim, Assin Fosu, Agona Swedru, and Kasoa shows that financial literacy significantly improves access to digital financial services. In turn, gaining access to digital finance directly enhances overall business performance. Furthermore, access to digital finance serves as a mediating link, showing that financial knowledge translates into improved business outcomes specifically through digital financial tools. Access to digital finance proves just as essential as financial literacy for driving enterprise success, indicating that trading via digital channels boosts commercial results. Consequently, digital trading platform operators need to enhance user experience and raise awareness through targeted advertising to encourage broader business engagement.
Small and medium businesses drive regional economic activity, yet their growth often depends on practical tools. Demonstrating that digital finance acts as the bridge connecting financial literacy to enterprise performance highlights where interventions succeed. When businesses adopt accessible services such as Mobile Money, their overall commercial outcomes improve, underscoring the necessity of combining practical financial education with modern digital tools.
These findings apply directly to digital trading platform developers and financial technology firms targeting small and medium enterprises. The research points towards near-market opportunities to design more user-friendly interfaces and targeted promotional campaigns that lower barriers to adoption. Because access to digital finance directly drives enterprise performance, software vendors and mobile network operators can refine their existing services to capture unmet merchant demand in regional commercial hubs.
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This paper expands on financial literacy, access to digital finance, and SME performance in the Central Region of Ghana. First, the study analysed SMEs’ digital platform knowledge and utilisation. It examined the relationship between financial literacy, access to digital finance, and SME performance. The paper discussed the mediating influence of access to digital finance on SMEs’ financial literacy and performance. The study employed the quantitative research approach. Using the purposive sampling technique, a total of 400 responses were gathered from SMEs in Cape Coast, Mankessim, Assin Fosu, Agona Swedru, and Kasoa. The study used self-administered questionnaires to collect data. SPSS was employed to evaluate descriptive statistics. Results show that SMEs in the study areas use Mobile Money more than any other digital platform. PLS-SEM was used to investigate the relationship between financial literacy, digital finance, and SME performance. It was found that financial literacy positively affects access to digital finance. Also, access to digital finance improved performance. Access to digital finance mediates the relationship between financial literacy and SME performance. Access to digital finance is as crucial as financial literacy for increasing performance. Therefore, using digital platforms to trade would boost business performance. Digital trading platform providers should improve advertising and make their systems user-friendly.
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DOI: 10.1080/23322039.2022.2121356
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