Effect of Debt Management Literacy on Investment Decisions Among Youth Entrepreneurs in Mombasa County

Ahmed Mohamed Omar; Jamal  Noor; Juliana  Asser

doi:10.61250/ssmj/v1.i3.5

Authors

Ahmed Mohamed Omar Technical University of Mombasa Author
Dr. Jamal Noor Technical University of Mombasa, Kenya Author
Dr. Juliana Asser Technical University of Mombasa, Kenya Author https://orcid.org/0000-0001-5848-4499

DOI:

https://doi.org/10.61250/ssmj/v1.i3.5

Keywords:

Debt Management Literacy, Investment Decisions, Financial Literacy, Youth Entrepreneurs, Mombasa County

Abstract

This study investigates the effect of debt management literacy on investment decisions among youth entrepreneurs in Mombasa County, Kenya. Despite growing recognition of financial literacy as a key driver of entrepreneurship, limited debt management knowledge continues to undermine youth entrepreneurs’ ability to access, manage, and leverage credit effectively. Guided by Information Asymmetry Theory, the study employed a descriptive research design targeting 32,102 youth entrepreneurs across Mombasa County. A stratified random sample of 400 respondents was selected using Yamane’s formula. Structured questionnaires were used for data collection, and data analysis was conducted using descriptive and inferential statistics. Findings revealed that debt management literacy has a statistically significant positive effect on investment decisions, highlighting the importance of skills in evaluating loan terms, understanding repayment obligations, and managing credit responsibly. The study concludes that enhancing debt management literacy is critical to improving investment outcomes and recommends policy measures to integrate financial literacy training into youth entrepreneurship programs.

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