Financial Risk Management
Financial Literacy and Risk Management: A Study on Small Independent Women Entrepreneurs

Article Details
Pub. Date : Mar, 2023
Product Name : The IUP Journal of Financial Risk Management
Product Type : Article
Product Code : IJFRM010323
Author Name : Narayana Maharana, B Udaya Bhaskara Ganesh, Jyotirmayee Mohanty, Ashok Kumar Panigrahi and Suman Kalyan Chaudhury
Availability : YES
Subject/Domain : Finance Management
Download Format : PDF Format
No. of Pages : 20



The paper seeks to identify the extent to which financial literacy influences the risk management practices of women entrepreneurs and to explore the factors that contribute to the development of their financial literacy skills. It utilizes a mixed-methods approach, incorporating both quantitative surveys and qualitative interviews with a sample of small independent women entrepreneurs to collect data on their financial literacy levels and risk management practices. The study found a significant positive relationship between financial literacy and risk management among small independent women entrepreneurs. Women entrepreneurs with higher financial literacy levels were more likely to engage in effective financial risk management practices, such as regular financial monitoring, contingency planning, and diversification of income streams. The interviews revealed that financial literacy was crucial in empowering women entrepreneurs to make informed decisions about their businesses and manage risks effectively. Moreover, the study found that the relationship between financial literacy and financial risk management is stronger than that between financial literacy and business risk management. Access to finance is also a significant predictor of financial risk management among women entrepreneurs. The results of this study will be useful to policymakers, educators, and business support organizations seeking to promote financial literacy and improve risk management practices among this population.


Small independent women entrepreneurs play a crucial role in driving economic growth and job creation worldwide. Women-owned businesses account for a significant portion of small businesses, making up over 42% of small businesses in the United States alone. Despite the significant contribution of women entrepreneurs to the global economy, they continue to