BUSINESS INFORMATION COMPETENCES
WITH REFERENCE TO INFORMATION
LITERACY AMONGST WOMEN
ENTREPRENEURS IN KENYA AND SOUTH
AFRICA: A VALUE-ADDED PRODUCT FOR
ECONOMIC EMPOWERMENT.
Joyce Kinyanjui
University of Zululand
1. INTRODUCTION AND CONCEPTUAL
SETTING

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To participate fully in the affairs of the modern society
and also realize ones personal goals, utilization of
information is mandatory.
Anybody in this development-oriented Information
Society, can create, access, utilize and share information
and knowledge, enabling individuals, communities and
peoples to achieve their full potential in promoting their
sustainable development and improving their quality of
life (WSIS, 2005 p.9).
1. INTRODUCTION AND CONCEPTUAL
SETTING


As people share, evaluate and use information, it spurs
growth and development. Information has therefore
become big business and is the engine that is driving the
modern society ( Bhandary, 2000).
The most recent revolution in human civilization is
information revolution. It is the driving force behind
development in all spheres of life. This is why the
present society is referred to as an Information society.
1. INTRODUCTION AND CONCEPTUAL
SETTING

One of the tenets of this Information Society is enshrined
in the Universal Declaration of Human Rights Article 19
“that everyone has the right to freedom of opinion and
expression; that this right includes freedom to hold
opinions without interference and to seek, receive and
impart information and ideas through any media and
regardless of frontiers.” (WSIS, 2005 p.9) It is this right
that has made communication so central to the
Information Society and the foundation of all social
organization.
1. INTRODUCTION AND CONCEPTUAL
SETTING

As communication occurs, a lot of information is created
and circulated causing it to grow exponentially. This has
led to the problem of information overload. For effective
utilization of information then a special kind of literacy
beyond functional literacy is required. This kind of
literacy is what is commonly referred to as Information
Literacy (IL).
1. INTRODUCTION AND CONCEPTUAL
SETTING


According to the Association of College and Research
Libraries, ( 2000 ) Information literacy (IL) is defined as
an intellectual framework for understanding, finding,
evaluating and using information. The key words from
this definition are; “determine, access, evaluate,
incorporate, use and understand.” (ACRL: 2000)
In recognizing the importance of Information Literacy, the
Alexandria Proclamation on Information Literacy and
Lifelong Learning held at the Bibliotheca Alexandrina on
6th -9th Nov 2005 stated that ‘Information literacy and
lifelong learning are the beacons of the information
society, illuminating the courses to development,
prosperity and freedom.’ (Parker: 2006).
1. INTRODUCTION AND CONCEPTUAL
SETTING



There are different types of literacies e.g functional or
basic literacy, cultural, computer, and business, financial
literacy
Business Literacy (BL) -be able to understand all the
dynamics of business like finance, sourcing of products,
good customer care, quality control, competition,
advertising, book-keeping, budgeting, credit control,
profit margins, and many other skills.
Of these, one of the most important skills and which
forms the centre of this study is Financial Literacy (FL).
1. INTRODUCTION AND CONCEPTUAL
SETTING

Before one can be said to be financial literate, it is
assumed that this person has the intellectual framework
for understanding, finding, evaluating and using
information relating to finances, financial products, risks
and any other information related to his financial wellbeing.(Lusardi and Mitchell: 2007) The key words for
defining IL as used by ACRL become mandatory here.

“determine, access, evaluate, incorporate,
use and understand.” (ACRL: 2000)
1. INTRODUCTION AND CONCEPTUAL
SETTING

In this study, FL will be viewed as a value-added product
to all the initiatives and strategies put in place for the
economic empowerment of women. In general, adding
value to a product means changing or transforming the
product from its original state to a more valuable state.
1.2 contextual setting


Different countries have different strategies to meet
MDGs Kenya has developed a strategy referred to as
‘Visions 2030.’ under the National Economic and Social
Council of Kenya. (NESC 2006)
Level of literacy. Some of the initiatives include:
introduction of free primary education in 2002, scrapping
of boarding fees in secondary schools in 2008 and
increasing university enrollment by 50%.
1.2 contextual setting



Gender equality and economic empowerment of women.
The Kenyan Government is addressing this issue
through
the Economic Recovery Strategy (ERS) and the Ministry
of Gender, Sports, Culture and Social Services
(MGSCS).
Women Enterprise and Development Fund (2006) with
one billion Kenya shilling for disbursement to women
entrepreneurs
1.2 contextual setting




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
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Private sector
Equity Bank- 5 billion Kenya shillings;
Kenya Commercial Bank has another 5 billion shillings.
The International Finance Corporation (IFC)
Standard Chartered Bank has the Diva account,
Equity Bank with it’s slogan “Empowering women in
business” has several accounts; Shaba, Imara, Fedha,
Dhahabu, Almasi and Platini.
Unofficial women’s groups popularly known as ‘chama’
are even being invited by mainstream banks to do
business with them.
1.2 contextual setting



In South Africa, -Women’s Fund in 2006, the Women
Empowerment Programme (WEP),
Strategic Framework on Gender and Women Economic
Empowerment.
In an address on the State of the Nation in 2008 to a
Joint Sitting of Parliament at Cape Town, President
Thambo Mbeki said that his government is ‘intensifying
efforts already started to scale up assistance to cooperatives and small enterprises especially those
involving women, with emphasis on providing training
and markets, including linking them up with established
outlets’ (GoSA:2008).
1.2 contextual setting

However the most pertinent question is whether the
intended recipients have the basic skills in management
of finances. Both the Government and private sector
have grand initiatives for empowering women
economically but FL will determine how much of these
billions available to the women will actually transform
and empower their lives
1.3 Statement of the problem

Lusardi and Mitchell (2007 p.39) have clearly established
that there is a very high relationship between FL and
economic outcomes. Women who are not financially
literate are excluded from fair and safe financial services
from the mainstream providers like banks. It is no
wonder then that in the recent ‘Ponzi’ schemes popularly
called pyramid schemes where Kenyans were conned
out of billions of shillings, women made up the majority.
For as long as this exclusion remains economic
empowerment of women will never happen and the term
will remain just a catchy phrase.
1.3 Statement of the problem

However before we can talk of FL we have to look at
where the two countries are with regard to basic literacy
which is a precursor to IL and FL. Despite various efforts
to raise the literacy level in both countries they still
remain unacceptably low with the majority of illiterate
people being women.(GoK and UN: 2003). The Kenyan
Government while admitting the seriousness of this
problem said “education and training in Kenya today is
facing various challenges that have negatively impacted
on the economic development. Unless addressed
immediately, these challenges are likely to affect
unfavorably the current and future development in
Kenya.” (MOEST: 2004)
1.3 Statement of the problem


Part of the solution to this problem is Adult Literacy
Programmes. The enrolment in 2001 was only 93,052.
(MOEST: 2004)
Part of the Kenyan Government’s initiatives for lifelong
learning was the establishment of Technical, Industrial,
Vocational and Entrepreneurship Training (TIVET)
Institutions. However they are faced with myriads of
problems. They have inadequate and obsolete teaching
and learning facilities and equipments. The teachers are
poorly trained and teaching a curriculum that is not
rationalized with the needs of the country. Quality
assurance, inspection and supervision are extremely
weak. (MOEST: 2004)
1.3 Statement of the problem

Despite the fact that we are in the information age,
Kenya has no National Information Policy Bill to make
information more accessible. It was only in the year 2007
that it was drafted by the Ministry of Information and
Communication. (MIC: 2007)
1.3 Statement of the problem

In SA- programmes for enhancing literacy among the
adults. For example there is Banking on Our Future
(BOOF) South Africa which is an innovative financial
information literacy whose sole mandate is to provide a
foundation for understanding money. Their target is to
train 5,000 young people in financial literacy, dignity and
entrepreneurship and by the year 2012 the number is
hoped to increase to 50,000 young people. (BuaNews
(Tshwane): 2008) This initiative and many others that
have not been mentioned here are noble but if we
compare with the literacy figures they are just but a drop
in the ocean.
1.3 Statement of the problem


There are some success stories of libraries in SA with
very innovative IL programmes. However the majority of
citizens do not have access to any form of library and
information services. (Underwood: 2002)
In Kenya the Kenya National Library Service is lobbying
Members of Parliament to use part of their Constituency
Development Fund to form Community Libraries but in
the last parliament only two out of 210 constituencies
established a community resource center.
1.3 Statement of the problem

A number of surveys mainly in the West and parts of
Asia have been carried out to find out various aspects of
literacy among different segments of their population.
For example in Canada an Information Literacy survey
was carried out in 2003. (GoC: 2003) Singapore carried
out its first National Survey in 2005 (GoS 2005).
According to the researcher no survey has been carried
out in these two countries to find out the level of FL
among women entrepreneurs and yet this could be the
missing link between women economic empowerment
initiatives and actualization of the same.
1.4 Aim of the study

The main aim of the study is to find out the level of
financial literacy among women entrepreneurs in Kenya
and South Africa and suggest possible solutions.
1.5 Objectives of the study

To determine the level of financial literacy among women
entrepreneurs in Kenya and South Africa.
 To determine the sources of funding for the businesses
owned by women entrepreneurs in Kenya and South
Africa
 To find out how accessible main stream financial
services are to the women entrepreneurs in Kenya and
South Africa.
 Determine the challenges that the entrepreneurs face in
accessing financial information in Kenya and South
Africa
 Suggest a model for enhancement of financial literacy
skills for the women entrepreneurs in Kenya and South
Africa.
1.6 Research questions

The following research questions will be addressed in
order to realize the objectives of the study.
 Does the entrepreneur budget?
 Does the entrepreneur save regularly and if so where is
the money invested?
 What are the factors that the entrepreneur considered
before saving in that particular outfit?
 Does the entrepreneur do any kind of banking and if so
where and what are the factors they considered before
settling for this particular facility?
1.6 Research questions
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If banking with the mainstream financial facility, does the
entrepreneur know what fees and levies are charged for
running the account, statements, transaction and overall
cost of maintaining an account at that particular facility?
How well does the entrepreneur keep track of her
money?
Is the entrepreneur able to compute the amount of profits
per item?
What are the main sources of funding for the businesses
and why that particular kind of funding?
What are the alternative sources of funding that the
entrepreneur is aware of?
1.6 Research questions
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Which is the cheapest money available in the market
according to the entrepreneur and the reasons for
thinking so?
Is the entrepreneur the sole decision maker on matters
of finances in the business?
Has the entrepreneur ever tried to get financial services
like loans and overdrafts from Mainstream Financial
Institution and how easy was it to get the services?
How accessible are finances from the mainstream
banking services?
1.6 Research questions

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How easy is it for the entrepreneur to find out information
about financial services available to women
entrepreneurs?
Does the entrepreneur feel the need for receiving
financial education and how would they like the
education to be delivered?
1.7Assumption of the study
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
The study is based on the following major assumptions:
That a person who has completed Primary Education
regardless of the outcome has basic literacy.
 Despite the many ambitious and noble initiatives by the
Governments of the two countries, financial institutions,
private sectors, and NGOs to empower women
economically, their initiatives are yet to be felt
significantly by the target group.
 Low financial literacy level is excluding many women
from the mainstream financial services like banks in the
country.
 With more financial literacy, the women entrepreneurs in
Kenya and South Africa would change the way they do
business in a significant way.
1.8 Scope and limitations of the study

The study will be limited to women entrepreneurs from
Nairobi in Kenya and in South Africa; Durban.
1.9 Significance of the study


According to the researcher no such survey has been
carried out in these two countries. The results of the
findings will hopefully form the basis for future National
Financial Literacy Surveys.
The findings will also be of particular importance to both
Governments and organizations involved with economic
empowerment of women for they will have a better
understanding of their clientele’s FL level thereby
enabling them to improve on their strategies.
2.0 Literature review

The literature for the study will be reviewed mainly from
electronic journals, newspapers, financial magazines,
Institutions Websites, promotional materials and
advertisements in both the print and electronic media by
the stakeholders as they carry current information.
However other sources will include; books, conference
papers, research publications, Government publications.
The literature reviewed will both be primary as well as
secondary.
3.0 Research design and methodology

The study will be carried out using the survey research
method. (Neuman: 2006)
 Only a small sample will be taken and findings
generalized to entire population.
 Both qualitative and quantitative research techniques will
be used.
 Qualitative technique will be used so as:
1. to capture complexities of phenomena by carrying out an
in-depth survey on the target population thereby
collecting a lot of data.
3.1 Research method cotd.
2. It will help describe and evaluate the role of FL among
women entrepreneurs.
3. Used to build theories.
Quantitative research technique will be used to:
1.Gather information on the relationship between various
variables of the study.
2. Present some data in form of statistics and aggregated
data.
3.2 Target population
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Women entrepreneurs in a continuous and regular
activity that has income or profit as its primary purpose.
Enterprise must be registered and licensed by Local
Authority.
Must have a physical location.
Financial institution will include Organizations that have
been granted licenses by the Central Bank to offer
financial services and have special programmes for
women.
3.3 Sampling

The study will use both probability and non probability
sampling techniques to create a sampling frame.
 In probability sampling use stratified sampling to ensure
that different kinds of businesses would be included in
the survey.
 Once strata are identified then use non probability
sampling to carry out the real study. These will include,
quota sampling, purposive technique and snowballing
Sampling frame
Strata
 Food and beverages
 Hair and cosmetics
 Clothing and textiles
 General Grocery store
 Educational Institution
 Private professional practice
 Stationary/bookstore/printing
 Others
Total sample
No.
30
25
25
40
20
20
20
20
200
Sampling frame cotd.

These total sample is for individual countries.
The total sample for the whole study will therefore
be 400 samples.
Justification.
 According to Gay (1996) as quoted by Leedy and
Ormrod(2002:p.221) when the sample size is above
5000, then population size is almost irrelevant, and a
sample size of 400 is adequate
Sampling frame cotd.

For Financial Institution only those organizations that
have been licensed to offer financial services and have
programmes tailor made for women will be included in
the survey. These may include, Unit Trusts, Micro
finances, Banks both local and International.
3.4 Research Instruments
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Detailed questionnaire that will be both structured as well
as open-ended.
Interview schedule.
Unobtrusive observation will be used to find out how
business is carried out noting things like recording of
transactions.
Existing statistical reports e.g government and UN
Country reports or previously conducted surveys to
address research questions.
3.5 Data collection procedure
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Meet necessary legal requirements
Recruit and train two Research Assistants for each
country during the piloting Phase.
Interviews by appointment.
3.6 Pilot study
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Pilot study to be carried out in both countries.
Main aim is to test reliability of questionnaires.
Population for the pilot study will be 10% of the sample
population.
3.7 Data presentation and analysis

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Quantitative data analyzed using Statistical Package for
Social Sciences (SPSS) to determine frequencies,
percentages and relationships among variables.
For qualitative data, use content analysis to identify
patterns, themes and biases.
4.0 Dissemination of research findings.

The research findings will mainly be disseminated by
means of a thesis. Other methods will include;
publication in peer-reviewed journals both print and
electronic, conferences, seminars and workshops.
5.0 Structure of the thesis
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Chapter1: Introduction and background to the study.
Chapter 2: Conceptualizing Financial Literacy
 Chapter 3: Theoretical framework
 Chapter 4: Literature review
 Chapter 5: Research design and methodology
 Chapter 6: Data presentation and analysis
 Chapter 7: Discussion of findings
 Chapter 8: Summary, conclusions and recommendations
REFERENCES

ACRL. 2000. Association of College and Research Libraries. [Online].
Available:
http://www.ala.org/acr/standards/informationliteracycompetences.cfm
 (Accessed on 11th February 2008).

Bhandary, K. M. 2000. Information Literacy and Librarians Role.
[Online]. Available: http://www.tulc.org (Accessed 13th February, 2008)

BuaNews (Tshwane), 10 February 2008. MEC, Financial Literacy Project
Toast Milestone. [Online]. Available: http://www.allafrica.com (Accessed
11th February, 2008)

Government of Canada, 2003. Building on our competences: Canadian
results of the International Adult Literacy and Skills Survey. [Online].
Available: http://www.statcan.ca (Accessed 25th February, 2008)
REFERENCES

Government of Kenya and UN 2003. Millennium Development Goals:
progress report for Kenya. [Online]. Available: Http://www.gok.co.ke
(Accessed on 22nd February, 2008)

Government of Kenya, MOEST 2004. Report of the National Conference
on Education and Training 2003. [Online]. Available:
Http://www.gok.co.ke (Accessed on 22nd February, 2008)

Government of Kenya, 2006. National Economic and Social Council of
Kenya. Vision 2030. [Online]. Available: http://www.nesc.go.ke (Accessed
on 24th February, 2008)

Government of Kenya, 2007. Ministry of Information and Communication
Draft :. Freedom of Information Policy Bill 2007. [Online]. Available:
Http://www.gok.co.ke (Accessed on 22nd February, 2008)
REFERENCES

Government of Singapore, 2005. National Financial Literacy Survey
2005: findings and recommendations. [Online]. Available:
http://www.moneysense.gov.sg (Accessed on 22nd February, 2008)

Government of South Africa, 2008. Africa 2010. Address by Thambo
Mbeki on the state of the Nation to the joint Sitting of Parliament
[Online]. Available: www.sa2010.gov.za/opp/economy.php#bee (Accessed
on 11th February, 2008).

Lusardi, A. and Mitchell, O. S. 2007. Financial literacy and retirement
preparedness: evidence and implications for financial education.
[Online]. Available: http://www.EBSCO.com (Accessed on 24th February,
2008)

Neuman,W. L. 2006. Social research methods: qualitative and
quantitative approaches. 6th ed. Boston: Allyne and Bacon.
REFERENCES

Parker, J. S. 2006. Down from the Summit. London; Sage. Information
Development, Vol. 22,(1) Feb 2006 ISSN 0266-6669

Underwood, P. 2002. South Africa: A Case Study in Development
Through
Information Literacy. [Online]. Available
http://www.nclis.gov/libinter/infolitconf&meet/papers/underwood-fullpaper.pdf
(Accessed on 22nd February, 2008)

Vuotto, F. 2004. Information competences as a value-added product:
applying the business model to academe. [Online]. Available:
http://www.emeraldinsight.com/0090-7324.htm (Accessed on 9th October
2007)
.

WSIS, 2005. World Summit on the Information Society outcome
Documents: Geneva 2003-Tunis 2005. [Online]. Available:
http://www.itu.int/wsis/outcome/booklet.pdf (Accessed on 26th February 2008)
APPENDIX 1: WORK PLAN
Activity/Events
Year 2008
1
Proposal: development and defence
2
Chap.1: Introduction and background study
(contextual framework)
3
Chap.2: Conceptualizing financial literacy
4
Chap.3: Theoretical framework
5
Chap.4: Literature review
6
Chap.5: Research design and methodology
7
Development of research instrument
Year 2009
8
Pilot study
9
Field work in Kenya
10
Field work in South Africa
11
Chap.6: Data analysis and presentation
12
Chap.7: Discussions on findings
Year 2010
13
Chap.8: Summary, conclusions and
recommendations
14
Thesis collation and submission
15
Examination of thesis
16
Correction of thesis
17
Graduation
Months
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec