A research on determining the financial literacy levels of SMEs: The case of Tokat

Financial literacy is defined as the process of having knowledge about financial instruments, concepts and transactions and using the knowledge effectively. SMEs are important in national economies in terms of their density in the economy and the ability of large-scale enterprises to carry out their activities comfortably. The inadequacy of global companies in developing countries places the burden of employment on SMEs. In this case, increasing the financial information of SMEs causes it to become a social responsibility. The aim of the study is to determine the financial literacy levels of SMEs operating in Tokat. The study will contribute to the literature due to the scarcity of studies on SMEs and the lack of a study to determine the financial literacy levels of SMEs in Tokat. In the study, the survey method was used to determine the literacy levels of SMEs. The universe of the study consists of 9200 SMEs operating in Tokat province. The sample consists of 370 SME managers determined by the quota sampling method. The aim of the thesis study is to determine the financial literacy levels of SMEs operating in the province of Tokat. The study will contribute to the literature since there has not been a study to determine the financial literacy levels of SMEs in the province of Tokat. In the study, the survey method was used to determine the financial literacy levels of SMEs. The sample of the study consists of 370 SME managers determined by the quota sampling method. According to the results of the analysis, there were significant differences between the financial literacy level of SMEs and their educational status, the years of operation of the enterprises, the ages of the SME managers, their positions in the enterprise, their borrowing preferences, the use of incentives and the status of receiving financial literacy education. Analysis could not be made due to the unbalanced distribution of men and women in the gender factor. It has been concluded that the level of financial literacy increases as the education level increases, the younger SME managers have more knowledge of financial tools and concepts, and the financial literacy levels of SMEs that benefit from incentives are higher. Apart from all these situations, it has been concluded that the financial education levels of SMEs are generally low and, in parallel with this situation, their financial literacy levels are low. In the light of these results, various support programs and trainings should be offered to SMEs. As a result of these support programs, the data of the participants should be audited and measured and the programs should be updated according to the new results. Considering the contribution of SMEs to employment and economy, supporting SMEs and providing them with financial literacy training becomes a social responsibility.