Financial inclusion – does digital financial literacy matter for women entrepreneurs?

Abstract

PurposeWomen's financial inclusion has become a global research agenda, and past studies provide mixed evidence on the determinants of financial inclusion among women entrepreneurs across the globe. However, the impact of digital financial literacy on women's financial inclusion has seldom been addressed in the past literature.Design/methodology/approachThe authors perform a cross-sectional analysis of 144 countries using the World Bank Global Findex Database.FindingsThis study’s probabilistic regression results indicate that women entrepreneurs with a higher degree of digital financial literacy are more likely to engage in formal banking channels.Practical implicationsThe study findings have practical implications in terms of allowing regulators and banks to draw effective policies to attract women customers. Lack of effective regulatory intervention could lead to women exploring financial crimes, such as money laundering, due to their lack of involvement with the formal banking channel.Originality/valueThe authors explore the impact of digital financial literacy on women's financial inclusion. Such evidence is rare in the existing literature.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2022-0277

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“…Acknowledging the connection between financial inclusion, microentrepreneurship and sustainable livelihood will assist the decision-makers in creating and implementing projects on financial services’ availability and livelihood development. Women are prominent participants in promoting sustainable livelihood in developing countries, and their entrepreneurial activities promote long-term socioeconomic development (Sahu et al , 2021; Hasan et al , 2022). Several previous studies have assessed the effect of financial inclusion on women’s entrepreneurship (Lakuma et al , 2019; Goel and Madan, 2019) and sustainable livelihood development (Datta and Sahu, 2022; Ding et al , 2023) and affirms that financial inclusion has a significant effect on sustainable livelihood development and poverty alleviation in the long run.…”

“…The relevance of financial inclusion is felt deeply in the state of Odisha as the majority belong to the indigenous communities, who experience huge financial exclusion due to their remote locations and depend on irregular sources of income and employment (OES, 2022). Financial inclusion is often considered a feasible approach to promote sustainable livelihood because it permits business firms to make multiple choices regarding expenditure and investment and cope with unforeseen financial shocks and upsets (Inoue, 2019; Hasan et al , 2022; Datta and Sahu, 2022) and is crucial for self-employment and upliftment of backward women in the society (Ding et al , 2023). Access to formal financial services is essential for engaging in gainful economic activities and achieving sustainable livelihood that improves the economic empowerment of individuals (Sethi and Acharya, 2018; Sahu et al , 2021).…”

Financial Innovations in the Smart City Ecosystem

“…It is noteworthy that publications on the spread of the latest financial technologies only began to appear in 2015, indicating its high relevance. Studies on the general processes of fintech development, individual directions, technologies and tools are among the works by C. Haddad (Haddad, 2019), R. Hasan (Hasan, 2023), Z. Jourdan (Jourdan, 2023), R. Teeluck (Teeluck, 2021) and many others. It is a topical issue identification of Fintech connection with sustainable development: E. Battisti (Battisti, 2023), F. Campanella (Campanella, 2023), X. Deng (Deng, 2019), C. Vergara (Vergara, 2021), D. Wang (Wang, 2022).…”

The Necessity of Financial Literacy for Women Business Triumph: A Qualitative Study

“…The importance of financial literacy is particularly significant for women entrepreneurs since it directly affects their capacity to efficiently oversee (Hasan et al, 2022), maintain (Burchi et al, 2021), and grow their firms (Fauzi et al, 2020). The failure to effectively tackle the problem of insufficient financial literacy among women entrepreneurs can result in various negative outcomes (Fauzi et al, 2020), highlighting the significance of addressing this issue.…”