Empowering Vulnerable Populations and Fostering Entrepreneurship through Financial Literacy: A Case Study of Economic Benefits in the U.S
Year: 2024
Type: article
Study design: Observational Study
Abstract: The lack of financial literacy contributes to broader economic challenges as financially illiterate individuals are often more susceptible to predatory lending practices, financial fraud, and poor investment decisions, which can lead to financial instability and economic insecurity. Thus, the study examined financial Literacy as a tool for empowering vulnerable populations and fostering entrepreneurship: a case study of economic benefits in the U.S. The specific objectives were to: examine whether financial literacy significantly empowers vulnerable populations in the US; ascertain whether financial literacy significantly fosters entrepreneurship among vulnerable populations in the US. The study adopted a cross-sectional research design on a target population comprising vulnerable individuals in Mississippi, including low-income families, minorities, and unemployed or underemployed individuals. A sample size of 150 respondents was determined to ensure a diverse representation of the vulnerable groups. Primary data were collected using a structured questionnaire. The collected data were analyzed using the Kendall’s Tau correlation method. The findings showed that: financial literacy significantly empowers vulnerable populations in the US (tau_b = .331, p = .000); financial literacy significantly fosters entrepreneurship among vulnerable populations in the US (tau_b = .656, p = .000). In conclusion, by investing in financial education and implementing policies that promote financial literacy, we can help individuals achieve financial stability, support entrepreneurial endeavors, and drive economic growth. The study recommends that community-based organizations should develop and implement targeted financial literacy programs tailored to the specific needs of vulnerable populations, focusing on essential skills like budgeting, saving, and financial decision-making, to enhance their empowerment and financial stability.
Author: Jacob K. Abu
Institution: University of Benin
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405378045