Effect of Strategic Resource Management, Financial Literacy, and Institutional Support on Small Business Sustainability in Katsina State, Nigeria

Abstract

Small business sustainability remains a critical challenge in resource-constrained environments, particularly in northern Nigeria where institutional support has intensified but participation gaps persist. This study examines the effect of strategic resource management, financial literacy, and institutional support on small business sustainability in Katsina State, Nigeria. Drawing on the Resource-Based View, Human Capital Theory, and Institutional Theory, the study adopts a quantitative cross-sectional survey design targeting 384 registered small businesses across the three senatorial districts of Katsina State. Data were collected through structured questionnaires and analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that strategic resource management, financial literacy, and institutional support each exert significant positive effects on business sustainability. Financial literacy partially mediates the relationship between strategic resource management and sustainability, while institutional support moderates the financial literacy–sustainability relationship. The study contributes to management literature by integrating internal capability and external institutional perspectives in explaining SME sustainability in a developing economy context. Practical recommendations are offered for KASEDA and Katsina State policymakers to optimise training design, financing access, and programme outreach.