Abstract

The purpose of this study was to establish the relationship between entrepreneur financial literacy financial access transaction costs and performance of micro- enterprises in Nairobi City County in Kenya The study was anchored on resource based theory which posits that given resource heterogeneity immobility and satisfaction of the requirement of value rareness imperfect imitability and non substitutability a firm s resource can be a source of sustained competitive advantage The study also used contingency theory which supports a framework for examining influence of financial literacy on financial access and transaction costs The study established that financial literacy had influence on financial access transaction costs and performance of micro-enterprises The paper advance the argument and theoretical perspective that entrepreneur financial literacy is a major determinant of micro enterprise performance