scholarly journals ANALYZING FINANCIAL LITERACY OF INDIAN ENTREPRENEURS – A STUDY OF MSMEs

2021 ◽  
Vol 8 (SI-1) ◽  
pp. 313-329
Author(s):  
Rekha Gupta ◽  
Dr. Anupriya Pandey
Keyword(s):  
Financial Literacy ◽  
Small Firms ◽  
Financial Education ◽  
Financial Risks ◽  
Policy Makers ◽  
Four Dimensions ◽  
Efficient Management ◽  
Effective Role ◽  
Education Needs ◽  
Medium Firms

Entrepreneurs are constantly involved in decision making activities where the substantial decisions are financial in nature. So, increasing the financial literacy levels of entrepreneurs can play an effective role in efficient management of business finance and handling of financial risks and opportunities.This paper is an attempt to examine the financial literacy of MSME entrepreneurs along four dimensions- preparation and use of accounting statements; savings, investments and insurance; financial budgeting; and management of debt.The study is descriptive in nature. Since the majority of medium firms exhibited a higher level of financial literacy as compared to small and micro firms, so the policy makers, practitioners and other stakeholders should focus more upon the enhanced financial education needs of micro and small firms.

Assessing financial literacy in 12 countries: an OECD/INFE international pilot exercise

2011 ◽  
Vol 10 (4) ◽  
pp. 657-665 ◽  
Author(s):  
ADELE ATKINSON ◽  
FLORE-ANNE MESSY
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Education Programme ◽  
Survey Instrument ◽  
Personal Finance ◽  
International Network ◽  
Policy Makers ◽  
Diverse Range ◽  
The World ◽  
Similarities And Differences

AbstractThe OECD International Network on Financial Education has addressed the demand for an internationally comparable measure of financial literacy by developing a financial literacy questionnaire that can be used across a diverse range of countries. This questionnaire takes into account knowledge, behaviours, and attitudes related to personal finance and is designed to identify similarities and differences in levels of financial literacy around the world. It is currently being piloted in 12 countries, with the expectation that the final survey instrument will become a useful tool for policy-makers, academics, and financial education programme designers seeking to identify robust questions to assess financial literacy.

scholarly journals Measuring and profiling financial literacy in South Africa

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Elizabeth L. Nanziri ◽  
Murray Leibbrandt
Keyword(s):  
South Africa ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Multivariate Regression Analysis ◽  
Policy Makers ◽  
Financial Decisions ◽  
South Africans ◽  
Financial Behaviour ◽  
Using Data

Background: Microeconomic theories of financial behaviour tend to assume that consumers possess financial skills necessary to undertake related financial decisions. Aim and setting: We investigated this assumption by exploring the distribution of financial literacy among South Africans. Method: In the absence of a standard measure, a financial literacy index was constructed for the country using data collected on attitudes (towards), access to and use of financial services over the period 2005–2009. In a multivariate regression analysis, we used the index to examine the extent to which differences in financial literacy correlate with demographic and economic characteristics. Results: The index revealed substantial variation in financial literacy by age, education, province and race. Overall, demographic characteristics contributed up to 10% of the financial literacy differences among individuals in South Africa. Conclusion: These results can be used to guide policy makers where to place more emphasis in terms of financial education for South Africans.

scholarly journals Financial Literacy among Students of Nilkantha Multiple Campus

2020 ◽  
Vol 3 (2) ◽  
pp. 102-120
Author(s):  
Ram Chandra Rupakheti
Keyword(s):  
College Students ◽  
Young People ◽  
Correct Answer ◽  
Financial Literacy ◽  
Financial Planning ◽  
Financial Education ◽  
Average Level ◽  
Policy Makers ◽  
Financial Plan ◽  
Structured Questionnaire

The purpose of this research is to assess the level of financial literacy and its impact on college students in Nepal. This study surveys 60 students from Nilakantha Multiple Campus out of 896 students. This research used a structured questionnaire complemented by multiple choices to select the correct answer. The students taken for the study were from BBS group. Each 60 students have filled the questionnaire. The research reveals that financial literacy among students appears to be below the average level. It can be concluded that students have poor financial planning. Students have not enough knowledge about the importance of savings. Budgeting and financial plan of students have been found below average level. The overall students’ performance in the questions found 49.84% which is below the benchmark of Chen, Volpe, and Pavlicko. Overall, the study re­veals that students were not as financially literate as expected. It is, therefore, recommended that a comprehensive and aggressive program of financial education be carried out especially among young people in Nepal by policy makers.

scholarly journals The Influence of Gender and Ethnicity on Young Adults’ Participation in Financial Education Programme

2019 ◽  
Vol 9 (1) ◽  
pp. 159
Author(s):  
Mohamad Fazli Sabri ◽  
Rusitha Wijekoon
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Education Programme ◽  
Literacy Programs ◽  
Money Management ◽  
Kuala Lumpur ◽  
School Students ◽  
Management Tools ◽  
Policy Makers ◽  
Self Administered Questionnaire

A major problem encountered by educationalists, community leaders and policy makers is to transfer financial literacy and consumer education successfully to their community. Delivering of financial education for youth of a country is one possible intervention to improve the financial capabilities of a population. Therefore, for an effective training we have to identify their financial needs. Further they need guidance and access for financial knowledge and money management tools. Therefore, the objectives of this study are to identify the training needs of youth by gender and ethnicity about money management and to determine their interest towards it. The sample was comprised of 220 secondary school students from five schools in Greater Klang Valley/Kuala Lumpur with 112 females and 108 males and the data collection was done using self-administered questionnaire. The results shown that about one third of female youths have preferred to participate on financial literacy programs than male youths (21.5%). In addition, most of the Malay respondents said that they need more information to take efficient decisions on saving, borrowing and insurance, followed by Indians (64%) and Chinese (61.5%). The findings of this study would be used to the development of financial empowerment program of youth in Malaysia in order to enhance their financial literacy.

Financial access and economic development: the moderating role of financial consumer protection

2019 ◽  
Vol 15 (4) ◽  
pp. 406-424 ◽  
Author(s):  
Maryam Kriese ◽  
Joshua Yindenaba Abor ◽  
Elikplimi Agbloyor
Keyword(s):  
Economic Development ◽  
World Bank ◽  
Financial Literacy ◽  
Compliance Monitoring ◽  
Financial Access ◽  
Policy Makers ◽  
Content Type ◽  
The World Bank ◽  
Moderating Role

Purpose The purpose of this paper is to examine the moderating role of financial consumer protection (FCP) in the access–development nexus. Design/methodology/approach The study is based on cross-country data on 102 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013). The White heteroscedasticity adjusted regressions and Two-stage least squares regressions (2SLS) are used for the estimation. Findings Interactions between FCP regulations that foster fair treatment, disclosure, dispute resolution and recourse and financial access have positive net effects on economic development. However, there is no sufficient evidence to suggest that interactions between financial access and enforcement and compliance monitoring regulations have a significant effect on economic development. Practical implications First, policy makers should continue with efforts aimed at instituting FCP regimes as part of strategies aimed at broadening access to financial services for enhanced economic development. Second, instituting FCP regimes per se may not be enough. Policy makers need to consider possible intervening factors such as the provision of adequate resources and supervisory authority, for compliance monitoring and enforcement to achieve the expected positive effect on economic development. Originality/value This study extends evidence in the law–finance–growth literature by providing empirical evidence on the effect of legal institution specific to the protection of retail financial consumers on the access–development nexus using a nouvel data set, the World Bank Global survey on FCP and Financial Literacy (2013).

scholarly journals Small firms and the COVID-19 insolvency gap

2021 ◽  
Author(s):  
Julian Oliver Dörr ◽  
Georg Licht ◽  
Simona Murmann
Keyword(s):  
Financial Distress ◽  
Small Firms ◽  
English Summary ◽  
Policy Support ◽  
Policy Response ◽  
Special Role ◽  
Current Crisis ◽  
Policy Makers ◽  
Large Wave ◽  
Using Data

AbstractCOVID-19 placed a special role on fiscal policy in rescuing companies short of liquidity from insolvency. In the first months of the crisis, SMEs as the backbone of Germany’s economy benefited from large and mainly indiscriminate aid measures. Avoiding business failures in a whatever-it-takes fashion contrasts, however, with the cleansing mechanism of economic crises: a mechanism which forces unviable firms out of the market, thereby reallocating resources efficiently. By focusing on firms’ pre-crisis financial standing, we estimate the extent to which the policy response induced an insolvency gap and analyze whether the gap is characterized by firms which were already struggling before the pandemic. With the policy measures being focused on smaller firms, we also examine whether this insolvency gap differs with respect to firm size. Our results show that the COVID-19 policy response in Germany has triggered a backlog of insolvencies that is particularly pronounced among financially weak, small firms, having potential long-term implications on entrepreneurship and economic recovery.Plain English Summary This study analyzes the extent to which the strong policy support to companies in the early phase of the COVID-19 crisis has prevented a large wave of corporate insolvencies. Using data of about 1.5 million German companies, it is shown that it was mainly smaller firms that experienced strong financial distress and would have gone bankrupt without policy assistance. In times of crises, insolvencies usually allow for a reallocation of employees and capital to more efficient firms. However, the analysis reveals that this ‘cleansing effect’ is hampered in the current crisis as the largely indiscriminate granting of liquidity subsidies and the temporary suspension of the duty to file for insolvency have caused an insolvency gap that is driven by firms which were already in a weak financial position before the crisis. Overall, the insolvency gap is estimated to affect around 25,000 companies, a substantial number compared to the around 16,300 actual insolvencies in 2020. In the ongoing crisis, policy makers should prefer instruments favoring entrepreneurs who respond innovatively to the pandemic instead of prolonging the survival of near-insolvent firms.

(Un)intended consequences of the 2016 educational reform on early childhood education and care in Poland. The story of a few applications that led to significant disorder

2020 ◽  
Vol 18 (6) ◽  
pp. 806-823
Author(s):  
Anna Ciepielewska-Kowalik
Keyword(s):  
Educational Reform ◽  
Quantitative Research ◽  
Unintended Consequences ◽  
Special Focus ◽  
Curriculum Management ◽  
Policy Makers ◽  
Four Dimensions ◽  
School Year ◽  
Education And Care ◽  
Polish Government

Merton’s law on unintended consequences (1936) warns against the undesirable and unanticipated outcomes of every action and policy. More recent research (Zhao, 2017) in the field of education, in relation to Merton, claims that these consequences are usually treated as inconvenient side effect of a policy, but are, in fact, planned by policy-makers or other stakeholders to benefit them. It is therefore more appropriate to call them ‘(un)intended consequences’, which are not written into the policy but are a result of how the policy translates into practice. This paper, in relation to the above approaches, aims at revealing (un)intended consequences and hidden agendas of the educational reform conducted by the Polish government in 2016, with a special focus on their impact on ECEC. (Un)intended consequences are investigated here in four dimensions, including ECEC: organisational changes, curriculum, management and educators.  The paper is based on the review of literature and on the author’s qualitative and quantitative research among parents, teachers and representatives of local authorities, carried out in the 2018/2019 school year.

Envisioning a New Foundation for Gifted Education: Evolving Complexity Theory (ECT) of Talent Development

2017 ◽  
Vol 61 (3) ◽  
pp. 172-182 ◽  
Author(s):  
David Yun Dai
Keyword(s):  
Complexity Theory ◽  
Gifted Education ◽  
Adaptive System ◽  
Talent Development ◽  
Social Processes ◽  
Future Research ◽  
Research And Practice ◽  
Four Dimensions ◽  
Creative Productivity ◽  
Education Needs

This article presents a new theory of talent development, evolving complexity theory (ECT), in the context of the changing theoretical directions as well as the landscape of gifted education. I argue that gifted education needs a new foundation that provides a broad psychosocial basis than what the notion of giftedness can afford. A focus on talent development rather than giftedness should be based on a theory of talent development that is truly developmental, treating the developing person as an open, dynamic, and adaptive system, changing oneself adaptively while interacting with environmental opportunities and challenges. To introduce ECT, I first delineate the meaning and significance of four dimensions or “parameters” of talent development undergirding this new theory: domain, person, development, and culture. I then describe how ECT explicates the developmental processes and transitions as the result of human adaptations to environmental opportunities and challenges. More specifically, ECT uses the constructs of characteristic and maximal adaptation to elucidate how domain, person, development, and culture jointly shape a particular line of talent development, and how cognitive, affective, and social processes interact to push and sustain a critical transition from characteristic adaptation to maximal adaptation, eventually leading to high-caliber performance and creative productivity. I finally discuss the theoretical contributions and practical utilities of ECT for future research and practice.

Financial literacy and its determinants: the case of rural farm households in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martinson Ankrah Twumasi ◽  
Yuansheng Jiang ◽  
Salina Adhikari ◽  
Caven Adu Gyamfi ◽  
Isaac Asare
Keyword(s):  
Developing Countries ◽  
Financial Literacy ◽  
Financial Education ◽  
Policy Implications ◽  
Farm Households ◽  
Community Group ◽  
Data Set ◽  
Content Type ◽  
Wide Range ◽  
Rural Dwellers

PurposeThis paper aims to examine the determinants of rural dwellers financial literacy in Ghana.Design/methodology/approachA cross-sectional primary data set was used to estimate the factors influencing rural farm households' financial literacy using the IV-Tobit model.FindingsThe findings reveal that most rural residents are financially illiterate. The econometrics model results depicted that respondents' socioeconomic and demographic characteristics such as gender, income, age and education significantly affect financial literacy. Again, respondents who are risk seekers and listen or watch education programs are more likely to be financially literate.Research limitations/implicationsThe paper examined the determinants of rural dwellers financial literacy in four regions in Ghana. Future research should consider all or many regions for an informed generalization of findings.Practical implicationsThis paper provides evidence that rural dwellers are financially illiterate and it would require the policymakers or non-governmental organizations (NGOs) to establish a village or community group that comprises a wide range of bankers and government officials to help rural dwellers acquire some financial skills. Also, the positive relationship between media (whether respondent watches or listens to educational programs) and financial literacy implies that policymakers should focus on improving individuals' financial knowledge through training programs and utilize the media as a channel to propagate financial education to the public.Originality/valueAlthough previous studies have examined the determinants of financial literacy, little is known in developing countries and, in particular, rural communities. The authors fill this gap by contributing to the scanty existing literature in developing countries in several ways. First, this is the first study to examine the financial literacy level of rural dwellers in Ghana. Second, to not undermine the credibility of the estimation results, this study addresses the potential endogeneity issue, which other researchers have not adequately recognized. Finally, the study expands the scant literature on the subject and provides critical policy implications that will help policymakers formulate financial market policies that will contribute to rural dwellers financial literacy enhancement.

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