Financial Literacy and SME Success: A Critical Review of Current Literature and Emerging Perspectives

Small and medium-sized enterprises (SMEs) are often regarded as the backbone of global economies; however, their persistently high failure rates remain a concern, frequently linked to insufficient financial literacy and ineffective financial management. A limited understanding of financial principles constrains SME owners’ capacity to make sound decisions, secure financing, and maintain long-term business viability. To address this issue, the present study examines the relationship between financial literacy and SME success, emphasizing financial management practices, access to finance, and emerging aspects such as digital financial literacy, women’s economic empowerment, and sustainability. Using Scopus AI Analytics (retrieved September 25, 2025), the study integrates summary and expanded insights, concept mapping, expert topic analysis, and identification of emerging themes. The results indicate that financial literacy consistently supports SME performance by enhancing decision-making, facilitating credit access, and reducing vulnerability to business risks. In addition, emerging themes highlight the increasing importance of digital financial literacy in entrepreneurship, the empowering effect of financial knowledge for women entrepreneurs, and its role in advancing sustainability strategies. From a theoretical perspective, the study extends the resource-based view by framing financial literacy as an intangible yet strategic resource. From a practical standpoint, it underscores the necessity of customized training initiatives and policy measures tailored to the diverse realities of SMEs. By uncovering both established and emerging themes, this research enhances the understanding of how financial knowledge drives business growth and resilience, while also providing avenues for future exploration in digitalization, inclusivity, and sustainable entrepreneurship.