Work

Dynamics of Financial Decisions for 21st-Century Economic Environments: The Link Between Business Performance, Inclusion, and Financial Literacy of Entrepreneurs in Latin America

Year: 2026

Type: article

Abstract: Entrepreneurs represent a key piece in the generation of jobs and contribution to the economy through the performance of their businesses. Taking into account that literacy and financial inclusion constitute a business facilitator for the development of businesses, this study was based on analyzing the three variables, aiming to identify whether inclusion and financial literacy influence business performance. Through a non-experimental, quantitative study based on structural equations, a sample of 469 entrepreneurs from Peru, Bolivia, and Colombia was studied. The hypotheses were supported by observing the positive effect of one component of financial literacy (Cash Forecasting) and three components of financial inclusion (Access, Barriers, and Use) on Business Performance. However, the proposed model shows that the direct effect of two components (Bookkeeping and Financial Education) of financial literacy is not statistically significant. Therefore, these factors are vital tools that can help Latin American entrepreneurs make informed financial decisions, manage resources effectively, and build solid and sustainable businesses.

Source: International Journal of Financial Studies

DOI: 10.3390/ijfs14050110

Authors: Wladimir Chuquimia-Rivero, Elizabeth Emperatriz García-Salirrosas, Dany Yudet Millones-Liza, Miluska Villar-Guevara

Institutions: Universidad Peruana Unión, Universidad Autónoma del Perú, Universidad Tecnológica del Perú

Language: English

Topic: Financial Literacy and Behavior

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,172