MSME/SME Financial Literacy: A Systematic Literature Review and Bibliometric Analysis

Abstract Although there has been an increase in publications in the field of financial literacy in recent years, the articles related to financial literacy in connection to MSMEs/SMEs are limited. Hence, the purpose of this article is to analyze the trend in publication (for long-term, medium-term, and short-term) and literature review of key empirical studies to understand the definition, dimensions, and common variables that are influenced by financial literacy of MSME/SME owner/manager/CFO, etc. The descriptive bibliometric analysis reveals that overall business, management, and accounting is the leading subject area (in all three timelines) in which the articles are published, and the focus seems to be shifting to economics, econometrics, and finance in the short term with increase in percentage contribution in top 3 subject area list. The findings of our literature review reveal four aspects i.e., (i) The common dimensions of financial literacy were knowledge, awareness, and skill; (ii) There is no standardized scale for measuring the financial literacy of owner-managers of MSMEs; and (iii) Financial literacy is a common and significant antecedent to access to finance and enterprise performance. Financial literacy and access to finance are the challenges faced by MSMEs, these findings are of significance to both MSMEs and policymakers. Training and development programs to create awareness on policies related to MSMEs, sources of finance, and knowledge on basic financial aspects will not only improve the access to finance but also will improve the financial health and performance of MSMEs which are backbone of many developing economies. Further, academicians/researchers can work can developing a suitable scale measuring FL of owner-managers of MSMEs.