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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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    Cited by:

    1. Antonio Molina-García & M Teresa Galache-Laza & Vicente González-García & Julio Diéguez-Soto, 2025. "Financial literacy and environmental sustainability in SMEs: process innovation as an association mechanism," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(3), pages 765-802, September.
    2. Sani Inusa Milala & Khadijah Md Ariffin, 2026. "Financial Literacy: A Driver of Business Sustainability Among Small Contractors," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(3), pages 6496-6502, March.
    3. Fiza Amjad & Yulei Rao & Amin Ur Rahman & Sajjad Ahmad Baig & Muhammad Usman & Muhammad Waleed Younas, 2026. "Innovative Strategies for SMEs’ Sustainability: Crowdfunding, Industry 4.0, and Sustainable Business Models Using SEM-ANN Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 3490-3521, April.
    4. Omid Barani & Abdullahi D. Ahmed & Mahesh Joshi, 2026. "Financial Literacy at the National Level and Organisational Performance: A Meta‐Analysis Through Accounting Lenses," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(2), pages 1166-1191, June.
    5. Nurul Hidayana Mohd Noor & Syeliya Md Zaini & Noralina Omar & Raja Mayang Delima Mohd Beta & Lee Wei Chang, 2024. "Assessing Financial Literacy of Female Entrepreneurs in Informal Economy: Empirical Evidence from Micro Business in Malaysia," Information Management and Business Review, AMH International, vol. 16(3), pages 1036-1049.
    6. Elham Garmroudesfandiari & Vajihe Baghersad & Morteza Akbari, 2025. "Unlocking entrepreneurial potential: unveiling the role of both types of institutional forces," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 15(1), pages 1-20, December.
    7. Manisha Goyal & Renu Aggarwal & Komal Goyal, 2025. "Financial Literacy and the Sustainability of Small Firms: Fintech as a Mediator," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(6), pages 8669-8681, December.

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