From Literacy to Prosperity: Investigating Financial Literacy and Access in SME Growth.

Abstract

This study focused on financial literacy and financial accessibility aspects of SMEs, where finance is a significant concern that SMEs must face. Studies indicate that the management of SMEs often makes poor choices, both financial and managerial, because of limited understanding of FL and FA. The liquidity challenges faced by SMEs are mostly due to the owners’ limited abilities, poor competence, and lack of financial management knowledge. Through the help of imperial research and data analysis, this study shows SMEs owners and managers required a suitable level of FL and FA to effectively assess the needs of their businesses. FL enables them to prepare accurate financial statements and address associated concerns. Through the empirical data of different industrial clusters in relation to SMEs from Uttar Pradesh, is examined, where the study purposes to explore the requirement of FL among owners and managers and FL influencing role in FA leads to growths of SMEs.