Financial Literacy and Innovation Performance in SMEs

Campos-Valenzuela, Marta; Martínez-Martínez, Sofía Louise; Diéguez‐Soto, Julio

doi:10.4018/978-1-7998-7634-2.ch004

Cited by 8 publications

(5 citation statements)

References 68 publications

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“…The more financially literate an entrepreneur is in terms of making well-informed financial decisions, managing risk efficiently, having a fair idea of the cash flow, setting up funds for innovation during crisis and efficiently using the financial products and services instrumental in firm growth, the more the enterprise becomes innovative in terms of embracing creativity, conducting research and development, supporting new ideas from its employees and experimenting with the products and processes. This finding is congruent with the earlier studies (Campos Valenzuela et al, 2021; García-Pérez-de-Lema et al, 2021; Tian et al, 2020; Wahyono and Hutahayan, 2021).…”

Section: Assessment Of Measurement Modelsupporting

confidence: 93%

Financial Literacy of Microentrepreneurs and its Effect on the Business Performance and Innovativeness: Empirical Evidence from India

Kumari,

Sharma,

Adnan

2024

SEDME (Small Enterprises Development, Management & Extensio

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Micro-entrepreneurs are the strategic assets of the nation, given their mammoth share in maintaining the socio-economic equilibrium and inclusive growth of the economy. Despite their contribution to India’s economy, they are still confronted with several on-ground hurdles, such as inadequate financial literacy among entrepreneurs, inaccessibility to affordable credit, financial mismanagement and lack of innovation. The extant literature has revealed that financial illiteracy and lack of innovation have raised pertinent concerns across the world, given the increasing rate of business failures. Nonetheless, the effect of financial literacy on organisational performance and innovativeness remains underexplored and fragmented. This study aims to examine the effect of financial literacy on the business performance and innovativeness of the micro-entrepreneurs in Delhi-National Capital Region (NCR) in India. Primary data were gathered from around 302 micro-entrepreneurs registered in Delhi-NCR through self-administered questionnaires. Data analysis was conducted through SmartPLS 4 software. The results indicated that financial literacy significantly impacts business performance and innovativeness among micro-entrepreneurs. Therefore, the study advocates wider participation of policymakers, financial service providers and managers in designing tailored strategies aimed to enhance the financial education of micro-entrepreneurs.

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Section: Assessment Of Measurement Modelsupporting

confidence: 93%

Financial Literacy of Microentrepreneurs and its Effect on the Business Performance and Innovativeness: Empirical Evidence from India

Kumari,

Sharma,

Adnan

2024

SEDME (Small Enterprises Development, Management & Extensio

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“…Access to finance and the performance of MSMEs are moderated by financial literacy and have a positive relationship (Fatoki, 2021). Increasing the level of financial literacy has a positive relationship with SME innovation performance, through increased risk taking (Campos Valenzuela et al, 2021).…”

Section: The Influence Of Financial Literacy On Msme Performancementioning

confidence: 99%

Financial Literacy and Performance of Micro, Small and Medium Enterprises: A Literature Review

Musthafa,

Handra,

Bachtiar

et al. 2023

MARGINAL

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This research aims to examine various articles regarding the influence of financial literacy on the performance of MSMEs. The literature used in this research comes from indexed journal databases searching for the keywords "financial literacy" and "performance". This research found various factors involved in measuring the influence of financial literacy on MSME performance consists of: dimensions of financial literacy, namely: knowledge, attitudes and behavior; factors that influence financial literacy are age, gender, education, length of work and income; strategies to increase financial literacy through training; MSME performance are: financial and non-financial performance. The impact of financial literacy on MSME performance is influenced by many factors. This research provides input for policy makers to increase the level of financial literacy of MSME business actors so that MSME performance becomes better, competitive and has a competitive advantage.

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“…By complementing each other, Islamic financial innovation and literacy enable the Islamic economy to continue growing, benefit society, and strengthen a fair financial system. Islamic financial innovation and literacy are interrelated and complementary in conceptualizing Islamic financial innovation and literacy (Valenzuela et al, 2021). Innovation can strengthen Islamic financial literacy by developing Sharia-based financial products and services (Mohd Haridan et al, 2023).…”

Section: The Relationship Between Innovation and Islamic Financial Li...mentioning

confidence: 99%

The Role of Sharia Financial Innovation and Literacy in Improving the Performance of MSME Actors

Supriadi,

Maghfiroh,

Abadi

et al. 2023

JIEBR

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This study aims to analyze the role of innovation and Islamic financial literacy in improving the performance of MSME actors in the context of Islamic economics. This study also aims to evaluate the impact of innovation and Islamic financial literacy on MSME growth and contribute to the sustainable development of MSMEs. This qualitative research applied a literature approach and document analysis to collect relevant data and information. A literature review was also conducted to identify indicators of the success of Islamic financial innovation and literacy in MSMEs and appropriate evaluation methods. Other research data included previous research results and related case studies. The results of this study revealed that MSMEs that implement Islamic financial innovation and literacy tend to experience improved performance. Product and process innovation, selection of Islamic financial instruments, and financial management by Sharia principles contributed positively to increasing MSME income, productivity, and operational efficiency. This research contributes to understanding the critical role of innovation and Islamic financial literacy in improving the performance of MSME actors. The findings of this study can serve as a reference for relevant stakeholders, including MSME actors, government, and Islamic financial institutions, in developing supporting policies and programs that strengthen innovation and Islamic financial literacy in MSMEs.

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Financial Literacy and Innovation Performance in SMEs

Cited by 8 publications

References 68 publications

Financial Literacy of Microentrepreneurs and its Effect on the Business Performance and Innovativeness: Empirical Evidence from India

Financial Literacy of Microentrepreneurs and its Effect on the Business Performance and Innovativeness: Empirical Evidence from India

Financial Literacy and Performance of Micro, Small and Medium Enterprises: A Literature Review

The Role of Sharia Financial Innovation and Literacy in Improving the Performance of MSME Actors

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