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Financing Constraints On Smes In Emerging Markets: Does Financial Literacy Matter?

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  • Thi Anh Nhu Nguyen

    (Faculty of Management and Economics, Tomas Bata University in Zlin, Czech Republic)

Abstract

In the current context, SMEs in emerging markets are facing a number of obstacles to accessing financing sources. Therefore, various studies have discussed determinants of SMEs accessibility to finance. Yet to expand the conceptual framework in this research area, this article proposes that financial literacy of owner managers is a key influencing factor of SMEs access to financing sources. The collaboration between firms characteristics and owner managers characteristics, specifically financial literacy of owner managers, develops the unification of power resources. This would lead to an improvement to the quality and efficiency of financial decision making of SMEs to overcome constraints on the access to financing sources in emerging markets.

Suggested Citation

  • Thi Anh Nhu Nguyen, "undated". "Financing Constraints On Smes In Emerging Markets: Does Financial Literacy Matter?," Review of Socio - Economic Perspectives 201711, Reviewsep.
    • Handle: RePEc:aly:journl:201711
    DOI: https://doi.org/10.19275/RSEP017
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    More about this item

    Keywords

    Financial Literacy; Credit Constraints; SMEs Financing; Emerging Markets;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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