Financial Literacy, Credit Access, and Financial Decision-making: An Integrated Framework for Micro-enterprises
DOI:
https://doi.org/10.18502/kss.v10i13.18964Keywords:
credit access, financing decisions, financial literacy, micro-enterprises, systematic literature reviewAbstract
Micro-level businesses function as essential components of worldwide economic development, particularly in developing nations. This systematic literature analysis investigates the interrelationship between financial literacy, credit access, and financing decisions in micro-scale enterprises through the establishment of an integrated theoretical framework. Through analysis of literature from 2018 to 2024 using the Scopus database, 13 relevant studies were selected from 219 articles after quality assessment. The study integrates the Theory of Planned Behavior as grand theory, with Behavioral Finance Theory, Signaling Theory, and Pecking Order Theory as bridge theories. The findings reveal that financial literacy positively influences both credit access and financial decision-making, with credit access serving as a mediating mechanism. The study contributes theoretically by extending these theories in micro-enterprise contexts and demonstrating how financial literacy functions as a signaling mechanism. This review offers both theoretical advancement through novel integration and practical insights for policymakers to design effective financial literacy programs and credit access mechanisms, supporting micro-enterprise success.
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