Financial Management Skills and the Performance of Women Entrepreneurs: Study of Selected Women Entrepreneurs in Osun State, Nigeria

Despite their significant contributions to economic growth, women entrepreneurs often experience
high rates of business failure due to inadequate financial management skills. This study aims to
assess the effect of financial management skills on the performance of women entrepreneurs in
Osun State, Nigeria. Specifically, it examines how working capital management, financing, and
record-keeping influence women entrepreneurial performance. Conducted in Osun State, the study
involved 271 female entrepreneurs selected through multistage sampling from 12 local
government areas. Data were collected via a structured questionnaire, achieving a response rate
of 98.5%. Multiple regression analysis showed that financial management skills accounted for
49.1% (R² = 0.491) of the variance in performance. Record keeping emerged as the most
influential factor, with a coefficient of 1.864 and a t-value of 4.377. Financing skills had a
coefficient of 1.149 and a t-value of 2.813, while working capital management had a coefficient of
0.643 and a t-value of 2.959. The study concluded that effective record keeping is essential for
enhancing performance, with financing and working capital management also significantly
contributing. Therefore, it is recommended that the government and other stakeholders should
enhance access to both short-term and ongoing financial management training to improve the
performance of women entrepreneurs.