Financial Literacy Meets Inclusion: The Dual Pillars of Entrepreneurial Success in Kerala's MUDRA Scheme
This study examines the impact of financial literacy on the business performance of MUDRA scheme beneficiaries engaging in entrepreneurship in Kerala and investigates the mediating role played by financial inclusion. The factors of financial inclusion and financial literacy are also understood as...
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| Format: | Article |
| Language: | English |
| Published: |
Srusti Academy of Management
2025-06-01
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| Series: | Srusti Management Review |
| Subjects: | |
| Online Access: | https://srustimanagementreview.ac.in/public/paperfile/paper-558.pdf |
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| Summary: | This study examines the impact of financial literacy on the business performance of
MUDRA scheme beneficiaries engaging in entrepreneurship in Kerala and investigates the
mediating role played by financial inclusion. The factors of financial inclusion and financial
literacy are also understood as the main determinants of an entrepreneur’s success; thus, this
research examines how the financial knowledge of an entrepreneur contributes to his business
performance and how the extent of financial inclusion strengthens this relationship. The sample
comprised 240 entrepreneurs from Kerala, with 60 entrepreneurs selected from each of the following
financial institutions: Public sector bank – State Bank of India (SBI), private sector bank –
Federal Bank, regional rural bank – Kerala Gramin Bank, and small finance bank – ESAF Small
Finance Bank. Using this approach, institutional support can be represented in diverse ways. To
analyse the data, this study uses Structural Equation Modelling (SEM) to explore direct and
mediated effects. These findings contribute to a better understanding of how financial literacy
affects business performance and how financial inclusion is an important factor in promoting
entrepreneurial success. This research identifies strategies for integrating financial literacy and
inclusion to inform policymakers, financial institutions, and practitioners on their valuable
implications for helping promote the growth and sustainability of small enterprises under the
MUDRA scheme in Kerala |
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| ISSN: | 0974-4274 2582-1148 |