FINANCIAL LITERACY AND SUSTAINABILITY OF MICRO AND SMALL ENTERPRISES: A STUDY

Abstract

Various literature extensively acknowledges the pivotal role played by micro, small and medium enterprises (MSMEs) and their profound contributions to the economy. The study investigated the impact of the financial literacy of managers/owners of micro and small enterprises on the enterprises’ sustainability. 239 enterprise owners participated in this study. Variables were measured by a five-point Likert scale and were analysed descriptively. Furthermore, with the help of Smart PLS 4, structural equation modelling was utilised. The study shows a significant impact of financial literacy on entrepreneurs’ sustainability. The study recommends that region-specific financial literacy programs for the enterprises will go a long way in enhancing the financial literacy level which will help to a great extent in the long-term sustainability of the Micro and Small enterprises.

Keywords: Financial Literacy, Enterprises’ Sustainability, Micro and Small Enterprises.