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Dr Ambrosius Nantinda. PHOTO CONTRIBUTED
Dr Ambrosius Nantinda. PHOTO CONTRIBUTED

Unlock the powers of financial literacy

Dispelling financial myths
Dr Ambrosius Nantinda explains that financial literacy is not just about knowing numbers but it's also about understanding how to use financial tools effectively.
Phillipus Josef
Dr Ambrosius Nantinda earned his PhD with a focus on financial literacy among entrepreneurs last month at the University of Namibia (Unam), uncovering key insights into how financial knowledge and access to resources influence business success.

He currently serves as a benefit administrator at the Government Institutions Pension Fund (GIPF).

His research highlights the interplay between financial knowledge, resource access and transaction costs as critical predictors of entrepreneurial performance.

“Financial literacy is more than just knowing numbers,” Nantinda explained.

“It’s about understanding how to use financial tools effectively to enhance business outcomes. Without proper knowledge, even the most promising entrepreneurs can face challenges like debt mismanagement or bankruptcy," he said.

Dispelling myths

Through his work, Nantinda discovered that entrepreneurs often hold misconceptions about financial literacy.

A common myth he seeks to dispel is the assumption that higher income equates to greater financial knowledge.

“It’s surprising how those with the least financial literacy often need education the most, yet they are the least likely to have access to it,” he noted.

Power and pitfalls of financial literacy

Nantinda likened financial literacy to the strength of a lion: a tool of power and protection when managed correctly but potentially dangerous when neglected.

“Financial literacy empowers individuals to plan, invest wisely and reduce debt. But if mishandled, it can lead to financial instability and poor decision-making,” he warned.

When asked about practical tools for budding entrepreneurs, he emphasised the importance of budgeting. “Budgeting is the cornerstone of financial success. It helps entrepreneurs plan for profits, manage cash flow, and secure financing."



Lessons

Reflecting on his academic path so far, Nantinda said the highlight was challenging financial myths and uncovering unexpected patterns.

“Nothing truly happens until it’s described. My research showed that market trends could be misleading without proper analysis,” he added.

He also urged entrepreneurs to approach financial missteps with humour and resilience.

“The funniest mistakes often stem from following trends blindly.The best recovery strategy is to conduct thorough market research and stick to a well-thought-out plan,” he advised.

Financial future

As he looks to the future, Dr. Nantinda envisions a world where entrepreneurs leverage financial literacy to create sustainable businesses.

His advice to aspiring entrepreneurs is simple: focus on the basics.

“Equip yourself with budgeting skills, choose the right financing options, and participate actively in financial markets,” he said.

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Allgemeine Zeitung 2024-11-29

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