The Influence of Financial Literacy and Financial Behaviour on MSME Entrepreneurship in Madurai district.

Abstract

It examines the influence of financial literacy and financial behaviour on MSME entrepreneurs in Madurai District. Financial literacy refers to the knowledge and skills required to make effective financial decisions, while financial behaviour relates to how individuals manage and use their financial resources. The study aims to assess the financial literacy levels of entrepreneurs, analyze their financial behaviour, and identify the relationship between these factors. Primary data were collected through a structured questionnaire from MSME entrepreneurs using a stratified random sampling method. The findings indicate that financial literacy significantly influences financial behaviour and helps entrepreneurs make better business and investment decisions. Behavioural factors such as confidence, risk perception, mental accounting, self-attribution, and herding behaviour also affect financial decision-making. The study concludes that improving financial literacy through education, training, and awareness programs can enhance financial behaviour and contribute to the growth and sustainability of MSMEs.

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