The Influence of Financial Literacy on Entrepreneurial Sustainability among Women-Owned Microenterprises: Evidence from Kenya

Purpose: The purpose of this article was to analyze the influence of financial literacy on entrepreneurial sustainability among women-owned microenterprises: evidence from Kenya Material and Methods: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Financial literacy significantly enhances the sustainability of women-owned microenterprises in Kenya by equipping entrepreneurs with crucial debt management and strategic investment skills. Women who demonstrate proficiency in calculating interest rates and managing digital loans are substantially more likely to maintain business continuity and avoid insolvency. Furthermore, financial literacy promotes disciplined financial practices, including the separation of business and household finances and systematic profit reinvestment, which directly contributes to capital accumulation and growth. This competency also strengthens strategic decision-making capabilities, enabling entrepreneurs to negotiate better terms with suppliers and plan effectively for market fluctuations. Ultimately, these combined effects transform vulnerable subsistence activities into resilient, sustainable enterprises that can withstand economic pressures and support long-term livelihood security. Unique Contribution to Theory, Practice and Policy: Human capital theory, Resource-based view (RBV) of the Firm, Theory of planned behaviour (TPB) may be used to anchor future studies on the influence of financial literacy on entrepreneurial sustainability among women-owned microenterprises: evidence from Kenya. Entrepreneurship development organizations should shift focus from simply increasing financial access to fostering comprehensive financial capability among women entrepreneurs. Policymakers should mainstream financial literacy as a core element within national entrepreneurship, financial inclusion, and gender equality policies.