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Assessing the Relative Financial Literacy Levels of Micro and Small Entrepreneurs: Preliminary Evidence from 13 Countries

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  • Nikolaos Daskalakis

    (Department of Public Administration, School of Economy and Public Administration, Panteion University, 17671 Athens, Greece)

Abstract

This study analysed the financial literacy (FL) levels of micro and small entrepreneurs (MSMEs) across 13 countries using data from the 2021 OECD/INFE survey. Focusing on the three core aspects of financial literacy—knowledge, behaviour, and attitudes—our analysis reveals that FL levels tend to vary by enterprise size, with small businesses generally scoring higher than micro-enterprises. Moreover, countries’ performances differ across the three FL aspects, and these differences appear to be component rather than country-specific. This study applied the standardised OECD/INFE methodology, enabling cross-country comparisons of MSME financial literacy. The results identify specific strengths and weaknesses across countries and FL components, providing valuable insights into policy design and educational interventions. For instance, while financial behaviour scores are relatively strong, financial attitude scores are consistently lower, indicating a gap that requires targeted attention.

Suggested Citation

  • Nikolaos Daskalakis, 2025. "Assessing the Relative Financial Literacy Levels of Micro and Small Entrepreneurs: Preliminary Evidence from 13 Countries," JRFM, MDPI, vol. 18(5), pages 1-21, May.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:5:p:283-:d:1659662
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    References listed on IDEAS

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    1. Florian Deuflhard & Dimitris Georgarakos & Roman Inderst, 2019. "Financial Literacy and Savings Account Returns," Journal of the European Economic Association, European Economic Association, vol. 17(1), pages 131-164.
    2. John Y. Campbell & Howell E. Jackson & Brigitte C. Madrian & Peter Tufano, 2011. "Consumer Financial Protection," Journal of Economic Perspectives, American Economic Association, vol. 25(1), pages 91-114, Winter.
    3. Annamaria Lusardi & Olivia S Mitchelli, 2007. "Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 42(1), pages 35-44, January.
    4. Adnan Balloch & Anamaria Nicolae & Dennis Philip, 2015. "Stock Market Literacy, Trust, and Participation," Review of Finance, European Finance Association, vol. 19(5), pages 1925-1963.
    5. Annamaria Lusardi & Olivia Mitchell, 2006. "Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education Programs," Working Papers wp144, University of Michigan, Michigan Retirement Research Center.
    6. Kamilah Ahmad, 2024. "The Influence of Financial Literacy, Risk Orientation and Qualified Accountants on Performance in Micro, Small and Medium Enterprises: The Mediating Role of Management Accounting," International Review of Management and Marketing, Econjournals, vol. 14(6), pages 317-324, October.
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