2024 | Román Culebro-Martínez, Elena Moreno-García, Sergio Hernández-Mejía
This study investigates the relationship between financial literacy (knowledge, behavior, and attitude) of micro, small, and medium-sized (MSME) entrepreneurs in Veracruz, Mexico, and their companies' performance. Data from 206 entrepreneurs were analyzed using a logistic regression model. The results show that financial behavior has a positive and highly significant effect on companies' performance, while financial knowledge and attitude do not show a significant relationship. Companies in the industrial sector led by men are less likely to achieve high performance compared to those in the commerce sector. No significant relationship was found between the entrepreneur's age, educational level, or company size and performance. The study highlights the importance of financial behavior in determining business performance, suggesting that improving financial practices could enhance MSME performance. The findings indicate that financial literacy, particularly behavior, plays a crucial role in business success, and further research is needed to explore other factors influencing financial behavior in entrepreneurs. The study contributes to understanding the impact of financial literacy on business performance in a Mexican context, emphasizing the need for targeted financial education programs for MSME entrepreneurs.This study investigates the relationship between financial literacy (knowledge, behavior, and attitude) of micro, small, and medium-sized (MSME) entrepreneurs in Veracruz, Mexico, and their companies' performance. Data from 206 entrepreneurs were analyzed using a logistic regression model. The results show that financial behavior has a positive and highly significant effect on companies' performance, while financial knowledge and attitude do not show a significant relationship. Companies in the industrial sector led by men are less likely to achieve high performance compared to those in the commerce sector. No significant relationship was found between the entrepreneur's age, educational level, or company size and performance. The study highlights the importance of financial behavior in determining business performance, suggesting that improving financial practices could enhance MSME performance. The findings indicate that financial literacy, particularly behavior, plays a crucial role in business success, and further research is needed to explore other factors influencing financial behavior in entrepreneurs. The study contributes to understanding the impact of financial literacy on business performance in a Mexican context, emphasizing the need for targeted financial education programs for MSME entrepreneurs.