Journal of Economic, Finance Research and Review (JEFRR)

Effectiveness of Financial Literacy and Financial Inclusion on Competitiveness of Small and Medium Sized Enterprises in Uganda: The Mediating Role of Financial Planning

Nzibonera, Eric, Akileng, Godfrey, Namanya, David

30 October 2026 · Vol. 2, Issue 10, pp. 743-752

DOI: 10.65150/EP-jefrr/V2E10/2026-06

Abstract

Purpose: This study examines the mediating role of financial planning on the relationship between financial literacy and financial inclusion on the competitiveness of small and medium-sized enterprises (SMEs) Uganda. Design/methodology/approach: A correlational design with a quantitative approach was used. A self-administered closed-ended questionnaire was distributed to 384 managers of SMEs in the Kampala Central Business area, selected through disproportionate stratified and simple random sampling; 281 usable responses were obtained (73.2%). Data were analysed in STATA using Pearson correlation and regression analysis and mediation was tested using the Baron and Kenny (1986) conditions through generating a Sobel z-value using a MedGraph. Findings: Both financial literacy (β = 0.509) and financial inclusion (β = 0.361) have a positive and significant effect on SMEs competitiveness. Both effects are fully mediated by financial planning, which accounts for 89.39% of the effect of financial literacy and 70.4% of the effect of financial inclusion. Practical implications: Government and private sector financial institutions should integrate financial literacy and financial inclusion activities that strengthen financial planning, equipping SME managers with the knowledge and technical skills needed for proper budgeting and investment decisions. Originality/value: Grounded in the Resource-Based View (RBV) theory, the study provides evidence from Uganda that financial literacy and financial inclusion enhance SMEs competitiveness through financial planning.

Keywords: Financial literacy, Financial inclusion, Financial planning, Competitiveness, Small and medium-sized enterprises, Uganda

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Nzibonera, Eric, Akileng, Godfrey, Namanya, & David (2026). Effectiveness of Financial Literacy and Financial Inclusion on Competitiveness of Small and Medium Sized Enterprises in Uganda: The Mediating Role of Financial Planning. Journal of Economic, Finance Research and Review, 2(10), 743-752. https://doi.org/10.65150/EP-jefrr/V2E10/2026-06

@article{Nzibonera2026,
  title   = {Effectiveness of Financial Literacy and Financial Inclusion on Competitiveness of Small and Medium Sized Enterprises in Uganda: The Mediating Role of Financial Planning},
  author  = {Nzibonera and Eric and Akileng and Godfrey and Namanya and David},
  journal = {Journal of Economic, Finance Research and Review},
  year    = {2026},
  volume  = {2},
  number  = {10},
  pages   = {743-752},
  doi     = {10.65150/EP-jefrr/V2E10/2026-06},
  url     = {https://doi.org/10.65150/EP-jefrr/V2E10/2026-06}
}

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