Performance of Women Entrepreneurs: Does Financial Literacy Really Matter?

Abstract

Purpose: The aim of the research is to investigate the impact of financial literacy and its dimensions on the women entrepreneurial success. The focus of the study is on the women entrepreneurs of Pakistan and examines the relationship between the dimensions of financial literacy like financial management, saving, debt, insurance and investment literacy and the performance of the women run enterprise. The inclusion and participation of the women is a key indicator for the progress and development of a country. Design/Methodology/Approach: The study employs a quantitative approach where survey questionnaires were the primary research method employed to collect the data. Data was collected from 284 women entrepreneurs form the major metropolitan cities in Pakistan. These women were selected using purposive sampling and the data was then analysed using the partial least square structural equation modeling (PLS-SEM) technique. Findings: The finding of the study suggests that the overall financial literacy level of women entrepreneurs is impacting the success and growth of their ventures. Moreover, all the dimensions of the financial literacy were positively and significantly related to the success. Implications/Originality/Value: This research advances the argument that the financial literacy is a contributing factor in the entrepreneurial success of the business.