Household Financial Literacy as a Moderator of the Relationship between Women Entrepreneurship Programme Support and Socio-Economic Livelihoods in Rural Uganda
Abstract
Women-focused entrepreneurship programmes increasingly combine access to finance, entrepreneurship training and mentorship to improve household welfare, yet the benefits generated by such interventions may depend on beneficiaries’ capacity to manage financial resources effectively. This paper examined the moderating effect of household financial literacy on the relationship between the Uganda Women Entrepreneurship Programme (UWEP) and socio-economic livelihoods among beneficiary households in Kyabarungira Sub-county, Kasese District, Uganda. A cross-sectional mixed-methods design was employed. Quantitative data were obtained from 74 household respondents, representing an 88.1% response rate from 84 targeted respondents, while qualitative evidence was obtained from six key informants comprising five UWEP focal persons/leaders and one Community Development Officer. Quantitative data were analysed using descriptive statistics, Pearson correlation, regression and moderation analysis, while qualitative data were analysed thematically. Household financial literacy was positively associated with socio-economic livelihoods (r = .598, p < .01). More importantly, the interaction between UWEP and household financial literacy was positive and statistically significant (β = .184, p = .030), contributing an additional 3.4% of explained variance in socio-economic livelihoods (ΔR² = .034). Qualitative evidence reinforced the statistical results by demonstrating that budgeting, saving, record-keeping, reinvestment and joint household financial decision-making enabled beneficiaries to protect enterprise capital and translate programme resources into more sustainable livelihood benefits. The paper concludes that access to entrepreneurship support is necessary but insufficient for sustainable livelihood transformation unless beneficiary households possess adequate financial capability. It recommends embedding continuous, household-sensitive financial-literacy education into women entrepreneurship programmes and strengthening post-financing coaching, record-keeping, saving and reinvestment support.