Financial Literacy and Its Role in Entrepreneurial Success in Emerging Economies

Rishab Ramsinghani

Abstract: Entrepreneurship is recognized as a powerful driver of economic development in emerging economies, contributing to job creation, innovation, and poverty reduction. However, many entrepreneurial ventures in such contexts fail due to poor financial decisions, insufficient financial knowledge, and limited access to formal financial systems. Financial literacy-defined broadly as the ability to understand and use financial information to make informed decisions-is increasingly recognized as a critical enabler of entrepreneurial success. This paper investigates how financial literacy affects entrepreneurial success in emerging economies: its influence on business performance, survival, risk management, access to credit, and sustainable growth. It proposes a theoretical framework linking financial literacy with entrepreneurial competencies and external environmental factors (financial inclusion, policy, culture). Empirical evidence is reviewed, gaps identified, and hypotheses proposed. Implications for policy, education, and future research are discussed.

Keywords: Entrepreneurship, financial literacy, emerging economies, business sustainability, policy framework

How to Cite?: Rishab Ramsinghani, "Financial Literacy and Its Role in Entrepreneurial Success in Emerging Economies", Volume 14 Issue 10, October 2025, International Journal of Science and Research (IJSR), Pages: 591-593, https://www.ijsr.net/getabstract.php?paperid=SR251006191459, DOI: https://dx.doi.org/10.21275/SR251006191459