The Necessity of Financial Literacy for Women Business Triumph: A Qualitative Study DOI: https://doi.org/10.33093/ijomfa.2023.4.2.8
Article Sidebar
Main Article Content
Abstract
Women entrepreneurs continue to be the torchbearers of society and nations in their pursuit of economic growth and social development through employment creation, innovation and poverty reduction. Nonetheless, financial literacy is an intangible resource that is required for growth, success, and long-term competitive advantage. However, a notable hindrance to the progress of women entrepreneurs is the absence of adequate financial literacy. The objective of this research was to ascertain the importance of financial literacy concerning the achievement of women entrepreneurs. In order to achieve the research objectives, a qualitative investigation was conducted, wherein interview data was gathered according to the OECD core competencies framework on financial literacy for entrepreneurs from a sample of twenty-three women entrepreneurs. The participants were selected based on the criteria of having a business that has been operational for at least five years. The results indicate that financial literacy considering the three dimensions assessed: financial knowledge, skills and attitude significantly influences the efficacy of women entrepreneurship. Consequently, it is recommended that women entrepreneurs engage in group-based and targeted training programmes to acquire the necessary skills to enhance their financial literacy.
Article Details
References
Access, F., & Services, C. (2020). Financial Literacy Enhancement Study Development of a useable definition and strategy framework to improve financial literacy for MSMEs in agriculture value chains. February, 1–17.
Amanda B. Elam. (2021). Women ’ s Entrepreneurship Report.
Andriamahery, A., & Qamruzzaman, M. (2022). Do Access to Finance, Technical Know-How, and Financial Literacy Offer Women Empowerment Through Women’s Entrepreneurial Development? Frontiers in Psychology, 12(January), 1–16. https://doi.org/10.3389/fpsyg.2021.776844
Anshika, & Singla, A. (2022). Financial literacy of entrepreneurs: a systematic review. Managerial Finance. https://doi.org/10.1108/MF-06-2021-0260
Anshika, Singla, A., & Mallik, G. (2021). Determinants of financial literacy: Empirical evidence from micro and small enterprises in India. Asia Pacific Management Review, 26(4), 248–255. https://doi.org/10.1016/j.apmrv.2021.03.001
Anuradha, P. (2021). The Financial Literacy of Women Owners of Small and Medium Scale Enterprises in Sri Lanka. Journal of Contemporary Issues in Business and …, 27(06), 317–330. https://doi.org/10.47750/cibg.2021.27.06.028
Atkinson, A. (2011). Finance : Assessing nancial literacy in 12 countries : an OECD / INFE Assessing financial literacy in 12 countries : an OECD / INFE international pilot exercise *. 657–665. https://doi.org/10.1017/S1474747211000539
Baporikar, N., & Akino, S. (2020). Financial Literacy Imperative for Success of Women Entrepreneurship. International Journal of Innovation in the Digital Economy, 11(3), 1–21. https://doi.org/10.4018/ijide.2020070101
Bucher-Koenen, T., Alessie, R. J. M., Lusardi, A., & <!>van Rooij, M. (2021). Fearless Woman: Financial Literacy and Stock Market Participation. SSRN Electronic Journal, March. https://doi.org/10.2139/ssrn.3838470
Burchi, A., Wlodarczyk, B., Szturo, M., & Martelli, D. (2021). The effects of financial literacy on sustainable entrepreneurship. Sustainability (Switzerland), 13(9), 1–21. https://doi.org/10.3390/su13095070
Chipfunde, D., Yahaya, S. N., & Othman, N. A. (2021). The determinants influencing the performance of women entrepreneurs in malaysia: A conceptual framework. Estudios de Economia Aplicada, 39(4). https://doi.org/10.25115/eea.v39i4.4577
Dalla Pellegrina, L., Di Maio, G., Landoni, P., & Rusinà, E. (2021). Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions. In Economia Politica (Vol. 38, Issue 3). Springer International Publishing. https://doi.org/10.1007/s40888-021-00217-9
Egbo, O. P., Ezeaku, H., Igwemeka, E., & Okeke, O. M. (2020). Financial literacy and access: revisiting the bridges and barriers to women entrepreneurship in Nigeria. Revista Amazonia Investiga, 9(29), 436–444. https://doi.org/10.34069/ai/2020.29.05.48
Fatah Yasin, R. F., Mahmud, M. W., & Diniyya, A. A. (2020). Significance of Financial Literacy among Women Entrepreneur on Halal Business. Journal of Halal Industry & Services, 3, 1–9. https://doi.org/10.36877/jhis.a0000076
Fauzi, F., Antoni, D., & Suwarni, E. (2020). Women entrepreneurship in the developing country: The effects of financial and digital literacy on SMEs’ growth. Journal of Governance and Regulation, 9(4), 106–115. https://doi.org/10.22495/JGRV9I4ART9
Ferdy Firmansyah, M., & Zulian Maulana, H. (2021). Empirical Study of E-Learning on Financial Literacy and Lifestyle: A Millenial Urban Generations Cased Study. International Journal of Engineering, Science and Information Technology, 1(3), 75–81. https://doi.org/10.52088/ijesty.v1i3.99
Filimonau, V., Matyakubov, U., Matniyozov, M., Shaken, A., & Mika, M. (2022). Women entrepreneurs in tourism in a time of a life event crisis. Journal of Sustainable Tourism, 0(0), 1–23. https://doi.org/10.1080/09669582.2022.2091142
GEM. (2021). 2020/2021 Global Report. In Global Entrepreneurship Monitor. https://www.gemconsortium.org/report/gem-20202021-global-report
Hasan, R., Ashfaq, M., Parveen, T., & Gunardi, A. (2022). Financial inclusion – does digital financial literacy matter for women entrepreneurs? International Journal of Social Economics. https://doi.org/10.1108/IJSE-04-2022-0277
Huston, S. J. (2010). Measuring Financial Literacy. Journal of Consumer Affairs, 44(2), 296–316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
Kapoor, M., & Aggarwal, V. (2020). Tracing the economics behind dynamic capabilities theory. International Journal of Innovation Science, 12(2), 187–201. https://doi.org/10.1108/IJIS-05-2019-0050
Khan, R. U., Salamzadeh, Y., Shah, S. Z. A., & Hussain, M. (2021). Factors affecting women entrepreneurs’ success: a study of small- and medium-sized enterprises in emerging market of Pakistan. Journal of Innovation and Entrepreneurship, 10(1). https://doi.org/10.1186/s13731-021-00145-9
Koomson, I., Villano, R. A., & Hadley, D. (2021). Accelerating the impact of financial literacy training programmes on household consumption by empowering women. Applied Economics, 53(29), 3359–3376. https://doi.org/10.1080/00036846.2021.1878093
Kurnianingrum, D., Waspada, I., & Sari, M. (2022). The Role of Financial Attitude in Entrepreneurship Student Investing Behavior. Proceedings of the 6th Global Conference on Business, Management, and Entrepreneurship (GCBME 2021), 657(Gcbme 2021), 61–66. https://doi.org/10.2991/aebmr.k.220701.015
Llados-Masllorens, J., & Ruiz-Dotras, E. (2022). Are women’s entrepreneurial intentions and motivations influenced by financial skills? International Journal of Gender and Entrepreneurship, 14(1), 69–94. https://doi.org/10.1108/IJGE-01-2021-0017
Malaysia, P. I. D., & (PIDM). (2020). Financial literacy IN MALAYSIA. December.
Ministry of Entrepreneur Development and Cooperatives. (2020). Malaysia National Entrepreneurship Policy 2030. Book, 76. https://www.conamype.gob.sv/
Noctor, M., Stoney, S., & Stradling, R. (1995). Financial literacy: a discussion of concepts and competences of financial literacy and opportunities for its introduction into young people’s learning. National Foundation for Educational Research., Natl. Found. Educ. Res.
OECD. (2020). OECD/INFE 2020 International Survey of Adult Financial Literacy. OECD/INFE 2020 International Survey of Adult Financial Literacy, 78. www.oecd.org/financial/education/launchoftheoecdinfeglobalfinancialliteracysurveyreport.html
Paraboni, A. L., & da Costa, N. (2021). Improving the level of financial literacy and the influence of the cognitive ability in this process. Journal of Behavioral and Experimental Economics , 90(January 2020). https://doi.org/10.1016/j.socec.2020.101656
Prakash, N., Alagarsamy, S., & Hawaldar, A. (2022). Demographic characteristics influencing financial wellbeing: a multigroup analysis. Managerial Finance. https://doi.org/10.1108/MF-09-2021-0466
Rachapaettayakom, P., Wiriyapinit, M., Cooharojananone, N., Tanthanongsakkun, S., & Charoenruk, N. (2020). The need for financial knowledge acquisition tools and technology by small business entrepreneurs. Journal of Innovation and Entrepreneurship, 9(1). https://doi.org/10.1186/s13731-020-00136-2
Senevirathne, W. A. R., Gamini, L. P. S., & Jayendrika, W. A. D. K. (2016). Sustaining Micro Enterprises of Women Entrepreneurs Through Financial. Open University Research Sessions, November.
Sholevar, M., & Harris, L. (2020). Women are invisible?! A literature survey on gender gap and financial training. Citizenship, Social and Economics Education, 19(2), 87–99. https://doi.org/10.1177/2047173420922501
Theses, E., Kipchirchir, N., & Citation, R. (2021). Sub-national Public Private Partnerships in Kenya : an appraisal of the legal and institutional framework against the constitutional principles on devolution and public procurement .
Thomas, H., & Hedrick-Wong, Y. (2019). The Role of Women Entrepreneurs in Inclusive Growth. Inclusive Growth, 89–99. https://doi.org/10.1108/978-1-78973-779-020191009
Younas, K., & Rafay, A. (2021). Women entrepreneurship and financial literacy: The case of female borrowers in Pakistan. Iranian Economic Review, 25(3), 525–534. https://doi.org/10.22059/ier.2021.84147
Zhang, H., & Xiong, X. (2020). Is financial education an effective means to improve financial literacy? Evidence from rural China. Agricultural Finance Review, 80(3), 305–320. https://doi.org/10.1108/AFR-03-2019-0027