Toward increasing financial inclusion and sustainability of indigenous microenterprises in Africa in the presence of financial literacy

Purpose – The main objective of this paper is to explore the link between financial inclusion and the sustainability of indigenous micro, small and medium-sized enterprises (MSMEs) in Africa in the presence of financial literacy. Design/methodology/approach – This study applied a semi-structured que...

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Bibliographic Details
Main Authors: George Okello Candiya Bongomin, Elie Chrysostome, Jean Marie Nkongolo-Bakenda, Pierre Yourougou
Format: Article
Language:English
Published: Emerald Publishing 2025-06-01
Series:Journal of Business and Socio-Economic Development
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Online Access:https://www.emerald.com/insight/content/doi/10.1108/JBSED-07-2023-0056/full/pdf
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Summary:Purpose – The main objective of this paper is to explore the link between financial inclusion and the sustainability of indigenous micro, small and medium-sized enterprises (MSMEs) in Africa in the presence of financial literacy. Design/methodology/approach – This study applied a semi-structured questionnaire to gather data to provide an answer to the set main objective. Findings – The results reveal a positive link between financial inclusion and the sustainability of indigenous MSMEs in Africa in the presence of financial literacy, grounded in consumer socialization and social learning theories. Research limitations/implications – This study collected data at a single time period. Forthcoming studies could benefit from using experimental design to capture changes in the long run. Practical implications – This study offers direction for designing financial literacy curricula aimed at addressing the gaps in financial literacy among MSMEs in Africa. Specialized modules can be developed to equip MSME owners with the ability to make better loan choices and investment judgments, ultimately enhancing business sustainability. Originality/value – This study applies consumer socialization and social learning theories to explore the link between financial inclusion, financial literacy and the sustainability of indigenous MSMEs in Africa. This is lacking in most past studies and literature.
ISSN:2635-1374
2635-1692