Determinants of the Financial Education of Micro- and Small Enterprises in Peru

Background: Micro- and small enterprises (MSEs) constitute 99.9% of Peruvian companies and generate 80.9% of employment yet face significant financial management challenges due to limited financial education. Objective: This study identifies the determinants of financial education among MSE entrepreneurs in Peru's Lambayeque region. Methods: A cross-sectional survey design was employed, administering a 19-item financial education questionnaire to 365 MSE owners across three provinces (Chiclayo, Lambayeque, and Ferreñafe). Financial education was measured at three levels: general (6 items), specific (13 items), and total (combined). An ordered logit regression model analyzed the relationship between entrepreneur characteristics and financial education levels. Key Findings: Entrepreneur age (?=0.254, p<0.05), education level (?=0.819, p<0.05), and gender (?=0.440, p<0.05) significantly predict financial education levels. Service sector MSEs demonstrate superior financial education compared to commercial enterprises. Gross profit margin emerges as the strongest predictor across all financial education dimensions (?=1.513, p<0.05). Policy Implications: Financial education is crucial to MSE development and must be addressed through targeted educational programs. Universities and government institutions should prioritize financial literacy initiatives, while high-performing MSEs should invest profits in employee financial training to ensure sustainable business growth. Received: 26 March 2025 / Accepted: 27 August 2025 / Published: 05 September 2025