Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between financial literacy and business growth of youth entrepreneurs has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Enugu State where operating conditions differ markedly from more developed markets.

Enugu State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

Despite a growing body of literature on financial literacy, there remains limited consensus on the precise nature of its relationship with business growth of youth entrepreneurs, particularly within Enugu State. Many organizations continue to make decisions about financial literacy without a clear, evidence-based understanding of how those decisions ultimately affect business growth of youth entrepreneurs. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Financial Literacy on business growth of youth entrepreneurs in Enugu State.
2. To assess the extent to which financial literacy influences business growth of youth entrepreneurs within the study area.
3. To identify the challenges associated with financial literacy in relation to business growth of youth entrepreneurs.
4. To recommend strategies for optimizing financial literacy in order to improve business growth of youth entrepreneurs.

1.4 Research Questions

1. What is the effect of financial literacy on business growth of youth entrepreneurs in Enugu State?
2. To what extent does financial literacy influence business growth of youth entrepreneurs within the study area?
3. What challenges are associated with financial literacy in relation to business growth of youth entrepreneurs?
4. What strategies can be adopted to optimize financial literacy in order to improve business growth of youth entrepreneurs?

1.5 Significance of the Study

Beyond its academic contribution to the field of entrepreneurship, this study has practical value for management teams within Enugu State seeking to understand how financial literacy translates into measurable outcomes around business growth of youth entrepreneurs. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this BSc study confines itself to Enugu State, focusing specifically on how financial literacy relates to business growth of youth entrepreneurs within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.