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Entrepreneurial financial literacy - small business sustainability nexus in Ethiopia

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  • Hayelom Abrha Meressa

Abstract

This study empirically examined the relationship between entrepreneurial financial literacy, access to credit, and the sustainability of small businesses in Ethiopia. The study used cross-sectional data collected from 293 owner-managers of small businesses through a survey questionnaire in 2022. It used structural equation modelling to analyze the results. Therefore, the paper’s empirical evidence revealed that entrepreneurial financial literacy contributes to small business sustainability. The findings also show that access to formal credit financing mediates entrepreneurial financial literacy- small business sustainability nexus. In this regard, the paper contributes to the literature on small businesses by demonstrating the importance of entrepreneurial financial literacy and access to formal credit financing for the sustainability of small businesses in Ethiopia, considering the knowledge-resource-based view.

Suggested Citation

  • Hayelom Abrha Meressa, 2023. "Entrepreneurial financial literacy - small business sustainability nexus in Ethiopia," Cogent Business & Management, Taylor & Francis Journals, vol. 10(2), pages 2218193-221, December.
  • Handle: RePEc:taf:oabmxx:v:10:y:2023:i:2:p:2218193
    DOI: 10.1080/23311975.2023.2218193
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