Assessing the Impact of Financial Literacy on Firm Sustainability: Mediating Role of Financial Access and Firm Growth

2021 ◽  
pp. 097084642110442
Author(s):  
Harleen Kaur ◽  
Palvi Bansal
Keyword(s):  
Financial Literacy ◽  
Firm Growth ◽  
Small And Medium Enterprises ◽  
Financial Access ◽  
Mediating Role ◽  
The Subject ◽  
Medium Enterprises ◽  
Company Growth ◽  
The Impact

Even though firm sustainability is a long-standing concern, just a few studies on micro, small and medium enterprises (MSMEs) sustainability have been conducted. Many studies have concentrated on a few particular sustainability criteria, but there is no comprehensive study on the subject from which to make concrete conclusions. The present research was inspired by the idea to examine how resources such as financial literacy, financial access and company development influence the sustainability of MSMEs. Data was gathered from 438 owner-managers of micro, small and medium enterprises through a questionnaire. The research discovered that financial literacy, financial availability and company growth are positively correlated with firm sustainability when using partial least squares. Surprisingly, the research found that financial access and firm growth moderate the anticipated connection between financial literacy and sustainability. As a result, policymakers and practitioners should ensure that firms have better access to financial resources, that owner-managers have the necessary financial literacy and that micro, small and medium-sized businesses grow effectively better firm sustainability.

scholarly journals Land Grabbing and Jatropha in India: An Analysis of ‘Hyped’ Discourse on The Subject

Land ◽  
2021 ◽  
Vol 10 (10) ◽  
pp. 1063
Author(s):  
Anika Trebbin
Keyword(s):  
Small And Medium Enterprises ◽  
Extensive Literature ◽  
Land Grabbing ◽  
Land Grab ◽  
Qualitative Survey ◽  
Global Land ◽  
The Subject ◽  
Medium Enterprises ◽  
The Impact

In the early 2000s, powerful narratives (re-)emerged around the food–fuel–land nexus, which, combined with the financial, food, and fuel crises of 2007-08, sparked new concerns about the finiteness of our resources and triggered, as well as partially justified, the then following land rush. Around the same time, a hyped debate also developed around biofuels as a potential fix to some of the global scarcity problems in which jatropha held a particularly prominent position as a new miracle crop. This study examines the concurrence of jatropha and the land grabbing hype in India, the leading promotor of the plant globally, and asks what effect the global land grab discourse had on actual jatropha investments in the country. To do so, an extensive literature review, discourse analysis, and qualitative survey were conducted, with a specific focus on jatropha investors. The study found that both hyped discourses have impacted investor decisions, but the impact varied depending on the types of company. This study adds a yet underrepresented investor perspective to the global land grabbing discourse and highlights a need to also consider the role of small and medium enterprises in land grabbing processes.

Mediating Role of Utilization of Financial Products and Services on the Relationship between Financial Access and MSMEs Growth in India

2020 ◽  
Vol 47 (3) ◽  
pp. 261-278
Author(s):  
Harleen Kaur ◽  
Palvi Bansal
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Cross Sectional ◽  
Financial Access ◽  
Goods And Services ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

The study’s main aim is to figure out what function financial goods and services play in mediating the link between financial access and micro, small and medium enterprises (MSMEs)’ growth in developing markets. Consequently, this article aims to see whether the usage of monetary goods and services in a developing nation like India mediates the connection between financial access and MSMEs’ growth. The data were collected from 392 MSMEs in the Jammu region using a cross-sectional research method. The partial least squares structural equation modelling (PLS-SEM) technique was used to see whether the use of financial goods and services in developing nations had a mediating consequence on the link between financial access and MSMEs’ growth. The study exclusively collected data from MSMEs in India’s Jammu region. There is still the possibility of confirming this result in other emerging economies. MSMEs may participate in financial access initiatives provided by organisations to use financial services better.

The Impact of Financial Literacy on Financial Preparedness for Retirement in the Small and Medium Enterprises Sector in Uganda

2020 ◽  
Vol 9 (3) ◽  
pp. 26-41
Author(s):  
Colin Agabalinda ◽  
Alain Vilard Ndi Isoh
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Group Analysis ◽  
Moderating Effect ◽  
Primary Data ◽  
Retirement Preparedness ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship ◽  
Effect Of Age

The study investigated the direct effects of financial literacy (knowledge, skills, and attitudes) on financial preparedness for retirement and the moderating effect of age among the small and medium enterprises in Uganda. Primary data was collected from a sample of n = 380 selected from the SME workforce. Descriptive analysis was run on SPSS, while validity and reliability of the measurement items yielded satisfactory composite reliability scores and average variance explained (AVE) scores for all items. Structural equation modelling (SEM) was used to test the hypotheses and multi-group analysis conducted to test for the moderating effect of age on the relationship between financial literacy and retirement preparedness. The results revealed that knowledge and skills were significant predictors of retirement preparedness. However, ‘attitude' was not a significant predictor, and age had no moderating effect on the relationship between the study variables. These findings present practical implications for policymakers and financial educators in a developing country context.

scholarly journals Access to Finance, Financial Development and Firm Performance – Evidence from Pakistan

2020 ◽  
pp. 49-68
Author(s):  
Waqas Ahmad ◽  
Zaheer Abbas ◽  
Zulfiqar Ali Shah
Keyword(s):  
Firm Performance ◽  
Financial Development ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Labour Productivity ◽  
Fixed Effect Model ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact

Purpose- The aim of the study is to investigate the impact of financial constraints on firm performance. The role of financial development in reducing financial constraints is also investigated. Design/methodology/approach- Data from two waves of World Bank Enterprise Surveys from 2007 to 2013 was used to construct the required variables. A balanced sample of 427 firms was selected and a fixed-effect model was used for empirical estimations. Findings- The findings indicate the significance of access to finance in terms of explaining firm performance. Improvement in access to finance led to subsequent improvement in firm performance as measured by labour productivity. The role of financial development in reducing credit constraints is not as expected. The concentration of lending to the private sector in the hands of large corporations at the expense of small and medium enterprises could be the reason for such a result. Originality/value – Most of the work in this area is focused on large listed firms. The present study focused primarily on small and medium-sized enterprises in Pakistan. Multiple measures of financial constraints and firm performance were used for robustness. The investigation also covers the role of financial development and its microeconomic implications at the level of an enterprise.

The Impact of Globalization on Development of MSMEs

2021 ◽  
Vol 2 (1) ◽  
pp. 46-60
Author(s):  
Rama Mohana Rao Katta ◽  
Chandra Sekhar Patro
Keyword(s):  
Small And Medium Enterprises ◽  
National Level ◽  
Work Conditions ◽  
Firm Level ◽  
Market Opportunities ◽  
Growing Economy ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

Globalization has been a significant force in the development of the market and economic environments. The micro, small, and medium enterprises (MSMEs) need to focus on technological capabilities to face the competition in the globalized market. They have to analyze the market opportunities in the rapidly growing economy as well as emerging markets. The aids of a globalized and digital economy depends to an excessive extent on favourable business environments and healthy competition. The performance of MSMEs depends on accessibility to various strategic resources like abilities, technical know-how, innovativeness, and finance. Thus, it is imperative to consider the factors influencing work conditions firm level, and the strategies formulated at the national level are organized to local business perspectives. This paper examines the global scenario of MSMEs, the impact of globalization, the role of MSMEs in India, the growth perspectives of MSMEs during the pre-and post-globalization period, the critical challenges, and the role of the government in encouraging and developing MSMEs.

RETHINKING (RELUCTANT) CAPTURE: SOUTH AFRICAN TELECOMMUNICATIONS AND THE IMPACT OF REGULATION

2003 ◽  
Vol 47 (1) ◽  
pp. 65-87 ◽  
Author(s):  
Tracy Cohen
Keyword(s):  
South African ◽  
Government Policy ◽  
Small And Medium Enterprises ◽  
Universal Service ◽  
Economic Empowerment ◽  
Second Phase ◽  
The Subject ◽  
Fixed Line ◽  
Medium Enterprises ◽  
The Impact

The South African telecommunications sector has recently been the subject of renewed interest as it commences its second phase of liberalization and opens up its fixed line market to competition. With democracy in place since 1994, the challenge of economic and social development created by the ravages of apartheid required detailed government policy in every sector. Telecommunications was no exception. Since the promulgation of the 1996 Telecommunications Act, developmental objectives, particularly universal service, the advancement of small and medium enterprises (SMMEs) and the economic empowerment of historically disadvantaged individuals have rivalled more pedestrian sectoral reform goals often given priority in other countries, such as the promotion of innovation and competition.

scholarly journals The impact of advisory services on Iranian SME performance: An empirical investigation of the role of professional accountants

2012 ◽  
Vol 43 (2) ◽  
pp. 61-72 ◽  
Author(s):  
Y. Kamyabi ◽  
S. Devi
Keyword(s):  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Theory And Practice ◽  
Competitive Intensity ◽  
Managerial Skills ◽  
Advisory Services ◽  
Job Opportunities ◽  
Medium Enterprises ◽  
The Impact

The role of small and medium enterprises (SMEs) is recognized globally given their contribution to total productivity and job opportunities. However, the majority of SMEs tend to fail due to a lack of marketing knowledge and managerial skills or technical expertise. Professional accountants are in a unique situation to help SME owner/managers to achieve their business objectives and bridge the skills gap. Therefore, this paper aims to identify the factors that affect the decisions of owner/managers of SMEs in Iranian manufacturing sector to utilise the professional accountants’ advisory services and to examine the impact of these advisory services on SME performance using the Resource-Based View (RBV) of the firm. Based on a questionnaire survey data of 658 Iranian manufacturing SMEs, our regression analysis reveals a significant positive relationship between utilisation of professional accountants′ advisory services and three independent variables, namely, knowledge of owner/manager, competitive intensity and complexity of marketing decisions. Furthermore, we evidence that the use of advisory services is significant and positively associated with SME performance. More importantly, utilisation of professional accountants′ advisory services partially mediates the relationship between knowledge of owner/manager, competitive intensity and complexity of marketing decisions and firm performance. Therefore, we provide a specific, theoretically and empirically grounded prediction of how utilisation of professional accountants′ advisory services influences performance with implications for theory and practice.

scholarly journals The Mediating Role of Individual Perception between Individual Orientation and Intention towards Sustainable Entrepreneurship

2020 ◽  
Author(s):  
Wei-Loon Koe ◽  
Shafinar Ismail ◽  
Mohd Halim Mahphoth ◽  
Rizuwan Abu Karim
Keyword(s):  
Formation Process ◽  
Small And Medium Enterprises ◽  
Environmental Issues ◽  
Negative Effects ◽  
Sustainable Entrepreneurship ◽  
Mediating Role ◽  
Individual Perception ◽  
Entrepreneurial Activities ◽  
Medium Enterprises

The negative effects of entrepreneurial activities on the environment should not be disregarded.  Sustainable entrepreneurship has been recognized as a  strategy in rectifying environmental issues through entrepreneurial activities.   However, developing sustainable entrepreneurs is still in its infancy stage in Malaysia. Most of Malaysia’s small and medium enterprises (SMEs) still regard it as a new practice and not many of them have actually embarked on it. As such, this study investigated the formation process of intention towards sustainable entrepreneurship through individual orientation and individual perception.  This study surveyed  404  SMEs owner-managers in Malaysia through self-administered questionnaires. The results indicated that individual orientation positively and significantly related to intention towards sustainable entrepreneurship. Meanwhile, the results also showed a significant partially mediating the role of individual perception between individual orientation and intention towards sustainable entrepreneurship. This study contributed to the literature by confirming that the formation process of intention towards sustainable entrepreneurship was successfully influenced by two important determinants, namely individual orientation, and individual perception. Practically, it highlighted some crucial factors in promoting sustainable entrepreneurship among SMEs in Malaysia. Keywords: Entrepreneurship, intention, orientation, small and medium enterprises (SMEs), sustainability

scholarly journals EFFECT OF EMOTIONAL INTELLIGENCE AND FINANCIAL LITERACY ON INVESTMENT DECISION MAKING WITH A MEDIATING ROLE OF RISK PERCEPTION

2014 ◽  
Vol 02 (02) ◽  
pp. 12-20
Author(s):  
Sahar Parvez ◽  
Keyword(s):  
Emotional Intelligence ◽  
Risk Perception ◽  
Financial Literacy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Impact

This research paper examines the impact of emotional intelligence and financial literacy on investment decision with a mediating role of risk perception. The data is collected by using questionnaire, from a sample of 152 investors, from stock exchange and banks. The results support that to make adequate investment decisions, investors should be financially literate and have control on their emotions. However, risk perception of investors does not mediate this relationship.

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