Informal business activities have been identified as playing a pivotal role in the growth and development of countries across the globe. However, small and medium business enterprises in the South African informal business sector are perceived to be failing due to a combination of low financial literacy levels and ineffective use of management accounting techniques such as budgets and pricing tools. The aim of this study was to assess the level of financial literacy of informal business owners in the Vaal region of the Gauteng Province of South Africa. A quantitative method was employed via administering a semi-structured questionnaire to 224 informal business owners. The study revealed that informal business owners possess low level knowledge of financial literacy. The study recommends that it is imperative that government and the non-governmental sector’s (NGO) focus training initiatives on this as a matter of importance.

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