A systematic literature review on financial capability of small and medium entrepreneurs

Abstract

The lack of financial capability has become a contemporary issue around the globe. Currently there is a high level of individual indebtedness, an increasing trend of complexity in the financial market, rapidly changing financial landscape, and increased individual responsibility, specifically the growing need of financial capability. The main objective of this study is to critically evaluate the literature on financial capability. The study identified different aspects and different measures of financial capability, levels of financial capability of small and medium entrepreneurs, consequences of financial incapability and methods of improving financial capability. The study revealed financial capability can be improved from tailor-made training programs and workshops. Also, it is necessary to follow up the individual’s acts and their behavior to identify whether their performances changed according to the advice given. Finally, the financially capable individual has the capacity to participate more effectively in society and contribute significantly to the economic growth of the country.