The Necessity of Financial Literacy for Women Business Triumph: A Qualitative Study

Abstract

Women entrepreneurs continue to be the torchbearers of society and nations in their pursuit of economic growth and social development through employment creation, innovation and poverty reduction. Nonetheless, financial literacy is an intangible resource that is required for growth, success, and long-term competitive advantage. However, a notable hindrance to the progress of women entrepreneurs is the absence of adequate financial literacy. The objective of this research was to ascertain the importance of financial literacy concerning the achievement of women entrepreneurs. In order to achieve the research objectives, a qualitative investigation was conducted, wherein interview data was gathered according to the OECD core competencies framework on financial literacy for entrepreneurs from a sample of twenty-three women entrepreneurs. The participants were selected based on the criteria of having a business that has been operational for at least five years. The results indicate that financial literacy considering the three dimensions assessed: financial knowledge, skills and attitude significantly influences the efficacy of women entrepreneurship. Consequently, it is recommended that women entrepreneurs engage in group-based and targeted training programmes to acquire the necessary skills to enhance their financial literacy.