ANALYZING FINANCIAL LITERACY OF INDIAN ENTREPRENEURS – A STUDY OF MSMEs

Abstract

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.