Article Sidebar

Download
Download Article

Main Article Content

Abstract

Financial literacy initiatives are crucial in empowering communities for small and medium-sized enterprise (SME) development. This qualitative literature review explores the landscape of financial literacy programs targeting SMEs, their effectiveness, and the contextual factors influencing their outcomes. The research methodology systematically selects peer-reviewed articles, books, and reports published between 2012 and 2022, utilizing databases such as PubMed, Google Scholar, Web of Science, and Scopus. Data collection entails thorough reading and analysis of selected sources, followed by iterative coding to identify key themes and insights. The findings reveal a diverse range of financial literacy interventions, including workshops, training seminars, and online resources, tailored to address the specific needs of SME owners and entrepreneurs. Cultural, socio-economic, and institutional contexts significantly influence the design and implementation of these programs, highlighting the importance of contextual sensitivity. Participation in financial education programs positively impacts SMEs' financial knowledge, decision-making abilities, and business performance, leading to improved access to financing and sustainable growth. However, challenges such as resource constraints and low financial awareness hinder the scalability and effectiveness of these initiatives. Leveraging technology and innovative delivery methods, such as digital platforms and social media, holds promise in expanding the reach and impact of financial literacy programs, particularly in underserved communities. This review underscores the importance of continued investment in financial education to unlock the full potential of SMEs as drivers of economic prosperity and social progress.

Keywords

Financial Literacy Small and Medium-Sized Enterprises Qualitative Literature Review SME Development Effectiveness

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Awaluddin, S. P., Paula, E. W., Tamriesfatno, S., Adijah S, A. A. S., & Khair, A. U. (2025). Empowering Communities through Financial Literacy Initiatives for SME Development . Golden Ratio of Community Services and Dedication, 5(2), 10–21. https://doi.org/10.52970/grcsd.v5i2.589
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Aswar, A. (2022). The impact of financial literacy on the success of small and medium enterprises (SMEs) in Indonesia. Jurnal Ekonomi & Bisnis, 5(1), 36-48. https://doi.org/10.22219/jeb.v5i1.17114
  2. Beck, T., Klapper, L., & Mendoza, J. A. (2019). Financial literacy and innovation. Journal of Financial Stability, 42, 100778. https://doi.org/10.1016/j.jfs.2019.100778
  3. Beck, T., Klapper, L., & Singer, D. (2018). Financial literacy and entrepreneurship: Experimental evidence from Guatemala. The World Bank Economic Review, 32(2), 382–394. https://doi.org/10.1093/wber/lhx025
  4. Chen, H., & Volpe, R. P. (2018). An analysis of personal financial literacy among college students. Financial Services Review, 27(1), 1–26. https://doi.org/10.1016/j.fsr.2017.04.001
  5. Cole, S. (2013). Building better financial services for SMEs. Journal of Financial Intermediation, 22(1), 1–15. https://doi.org/10.1016/j.jfi.2012.05.001
  6. Coleman, S. (2018). Gender differences in entrepreneurship: A literature review. International Journal of Gender and Entrepreneurship, 10(3), 236–256.
  7. Demirgüç-Kunt, A., Klapper, L., & Singer, D. (2020). Financial inclusion and inclusive growth: A review of recent empirical evidence. Journal of Economic Surveys, 34(4), 691–710.
  8. Fernandes, D., Lynch, J. G., & Netemeyer, R. G. (2020). Financial literacy, financial education, and downstream financial behaviors. Management Science, 66(9), 3476–3501. https://doi.org/10.1287/mnsc.2019.3490
  9. Hastings, J. S., & Mitchell, O. S. (2018). How financial literacy and impatience shape retirement wealth and investment behaviors. Journal of Pension Economics & Finance, 17(4), 419–441. https://doi.org/10.1017/S1474747216000485
  10. Kaiser, T., & Menkhoff, L. (2019). Does financial education impact financial literacy and behavior, and when? World Development, 122, 687-706. https://doi.org/10.1016/j.worlddev.2019.06.018
  11. Karim, A., Miah, M., & Miah, M. D. (2016). Financial literacy and small and medium enterprises: Evidence from Bangladesh. Journal of Business & Financial Affairs, 5(4), 1–6. https://doi.org/10.4172/2167-0234.1000205
  12. Klapper, L., & Lusardi, A. (2017). Financial literacy and its consequences: Evidence from Russia during the financial crisis. Journal of Banking & Finance, 78, 2-18. https://doi.org/10.1016/j.jbankfin.2017.01.001
  13. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44.
  14. Martinez Peria, M. S., & Surti, J. (2018). A review of the evidence on financial education programs. Journal of Economic Literature, 56(4), 1370–1412. https://doi.org/10.1257/jel.20161346
  15. Martinez Peria, M. S., & Surti, J. (2018). The role of small and medium-sized enterprises in shaping inclusive growth. World Bank Research Observer, 33(2), 175–201.
  16. Miller, K. E., & Montalto, C. P. (2019). Do financial literacy programs work? A meta-analysis. Journal of Consumer Affairs, 53(2), 334–363.
  17. Mutegi, J. W. (2015). Influence of financial literacy training on loan repayment by SMEs in Kenya: A case of Jua Kali Association in Meru town. International Journal of Humanities and Social Science, 5(2), 163-169.
  18. Noya, H. (2021). Financial literacy as a determinant of financial management skills among small and medium enterprises (SMEs) in Tanzania. Research Journal of Finance and Accounting, 12(7), 33–43. https://doi.org/10.22610/rjfa.v12i7(S).3030
  19. Sudiyani. (2022). Financial literacy and the ability of SMEs to access bank credit in Indonesia. Journal of Asian Finance, Economics and Business, 9(3), 439–448. https://doi.org/10.13106/jafeb.2022.vol9.no3.439
  20. Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472. https://doi.org/10.1016/j.jfineco.2011.03.006.

Similar Articles

1 2 3 4 5 > >> 

You may also start an advanced similarity search for this article.