Financial literacy, financial capabilities, and sustainable business model practice among small business owners in Nigeria

Babajide, Abiola Ayopo; Osabuohien, Evans; Tunji-Olayeni, P .F; Falola, Hezekiah Olubusayo; Amodu, L. O.; Olokoyo, F. O.; Adegboye, F.B.; Ehikioya, Benjamin Ighodalo

doi:10.1080/20430795.2021.1962663

Cited by 48 publications

(34 citation statements)

References 31 publications

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“…The findings show that the more SME managers/owners develop financial knowledge skills and use a financial product, the more they become sustainable. Our findings are in line with the study of Babajide et al (2021) , their findings conclude financial knowledge significantly influences small firm sustainability. A SBM creates customer and social value by integrating social, environmental, and economic activities into its business operations ( Kumari and Harikrishnan, 2021 ).…”

Section: Discussionsupporting

confidence: 93%

“…Business models’ concept in economics is not yet as clear as it should be ( Foss and Saebi, 2018 ). The business model has been studied by researchers to know the different dimensions and ways to innovate the business for getting value ( Wirtz et al, 2016 ) and sustainability of business ( Babajide et al, 2021 ). Sustainability of business means a sustainable environment ( Wang et al, 2021 ), a sustainable supply chain ( Khokhar et al, 2020 ), and sustainable development ( Lee, 2020 ).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…A carefully constructed business model is needed to fulfill such consumers’ necessities, particularly even though developing markets mostly lack sufficient entities, infrastructural facilities, and intellectual property protection. Recognizing SBM in the context of developing countries and financial institutions for underserved customers presents an interesting research avenue because our understanding of how innovation and sustainable development are integrated into emerging economies is limited ( Babajide et al, 2021 ).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Financial literacy improves loan application preparation and allows small business owners to present convincing arguments during client interviews, allowing them to meet the challenges of a changing business and financial markets environment ( Ye and Kulathunga, 2019 ). Technically, financial literacy improves SMEs’ eligibility for and access to resources, as well as their finance costs, allowing them to build a sound capital structure, which is a key determinant of their long-term viability ( Babajide et al, 2021 ).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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New Schemes for Investment in of Small and Medium-Sized Enterprises of China: Role of Access to Finance, Innovation, and Sustainability

Tang

2022

Front. Psychol.

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Firm innovation relies heavily on financing, which is why it is a hot topic in the fields of finance and innovation management. Organizations can make strategic investments in production factors to develop competitive advantages because they have access to financial resources. This study investigated how financial literacy, innovativeness, and environmental sustainability influence the sustainability of small and medium-sized enterprises (SMEs). This was set as the primary objective in order to better understand the nature of the impact of financial literacy and innovation on the sustainability of SME firms. To test the hypotheses, structural equation modeling (SEM) was applied using data collected from 300 small businesses firms in China. The results revealed that financial literacy and innovativeness significantly influence small firms’ sustainability. Additionally, social inclusion significantly affects small firms’ sustainability, and sequentially has a significant effect on their performance. Research findings suggested that small businesses incorporate sustainability models into their operations and enhance financial knowledge in order to maintain sustainability.

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Section: Discussionsupporting

confidence: 93%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

See 2 more Smart Citations

New Schemes for Investment in of Small and Medium-Sized Enterprises of China: Role of Access to Finance, Innovation, and Sustainability

Tang

2022

Front. Psychol.

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“…However, little attention is paid to the nexus between financial literacy and financial distress. On financial distress, some researchers (Asongu, 2019;Jaafar et al, 2018;Thim et al, 2018) concentrated on the financial distress of firms, while others looked at the factors that determine household or individual financial distress (Bricker and Thompson, 2016;Dobkin et al, 2018;Babajide et al, 2021) AJEMS 13,1 studies on factors that determine individual financial literacy (Thapa and Raj, 2015) across the globe. However, little attention has been given to the nexus between individual financial literacy and financial distress; though some research effort has been made, it is still scanty.…”

Section: Empirical Literaturementioning

confidence: 99%

Financial literacy, financial distress and socioeconomic characteristics of individuals in Ghana

Karakara

Sebu

Dasmani

2021

AJEMS

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PurposePersonal financial stress-free living is desired by many, which dwells on sound financial literacy (including financial behaviour, financial knowledge and financial attitude). Many individuals do not make optimal savings and investment decisions. The realisation that these choices may well lead to low living standards has also increased economic anxiety, especially in Sub-Sahara African countries, including Ghana. Thus, this study underscores the link between financial literacy and financial distress in Ghana. It establishes whether persons that are financially literate escape financial distress in their life.Design/methodology/approachThe paper engages nationally representative survey data and adopts a positivist research approach with logistic regression analysis to establish the likelihood of financial literate persons experiencing financial distress.FindingsThis study establishes that financially literate individuals are 2.4% less likely to experience financial distress. Socioeconomic characteristics greatly influence the probability of one experiencing financial hardship. It submits that policy can be directed towards improving financial habits (financial literacy) to enhance individuals' financial behaviour to lessen personal financial distress.Originality/valueNot much attention has been paid to whether financial literacy has a nexus with financial distress. Few studies (not on Sub-Saharan Africa) that have looked at this are done, neglecting a sensitivity analysis of socioeconomic characteristics in establishing the relations. However, this current study dwells on econometric analysis to establish the margin or extend to which a financially literate person may or may not escape financial distress given his/her socioeconomic characteristics.

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Role of sustainable business model, Industry 4.0, crowdfunding, and stakeholders' pressure toward firm's sustainability: A SEM‐ANN approach

Rahman,

Wen,

Amjad

2024

Bus Strat Env

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With growing global attention on achieving sustainable development goals, businesses worldwide face mounting pressures to incorporate sustainability into their business models and operations. However, despite the recognized importance of sustainability in modern manufacturing operations, the path toward embedding sustainability remains unclear and challenging for many manufacturing firms. Within the theoretical framework of dynamic capability theory and the imperative of sustainable development goals, this study investigates the influence of sustainable business models, crowdfunding, Industry 4.0 technologies, and stakeholders' pressure on the sustainable performance of manufacturing firms in Pakistan. Based on survey data from 370 small and medium enterprise owners and managers, our study utilized a hybrid approach by combining partial least squares–Structural equation modeling (SEM) and artificial neural networking techniques. The results emphasize a significant and positive impact of a sustainable business model on firm sustainability. Moreover, the findings reveal that Industry 4.0 technology and crowdfunding partially mediate the relationship between sustainable business models and sustainable performance, highlighting the significant role of advanced technologies and alternative financing. Besides, stakeholders' pressure emerges as a crucial moderator, further strengthening the relationship between sustainable business models and firm sustainability. This study advances knowledge of sustainable business actions within the firms and constitutes a valuable input for businesses, policymakers, and other stakeholders dedicated to enhancing sustainable growth in the manufacturing sector.

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Financial literacy, financial capabilities, and sustainable business model practice among small business owners in Nigeria

Cited by 48 publications

References 31 publications

New Schemes for Investment in of Small and Medium-Sized Enterprises of China: Role of Access to Finance, Innovation, and Sustainability

New Schemes for Investment in of Small and Medium-Sized Enterprises of China: Role of Access to Finance, Innovation, and Sustainability

Financial literacy, financial distress and socioeconomic characteristics of individuals in Ghana

Role of sustainable business model, Industry 4.0, crowdfunding, and stakeholders' pressure toward firm's sustainability: A SEM‐ANN approach

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