This study adopted a systematic literature review (SLR) approach guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA 2020) framework. The PRISMA methodology was selected because it provides a rigorous, transparent, and replicable process for identifying, screening, evaluating, and synthesizing existing scholarly evidence. The review aimed to systematically examine the state of knowledge regarding financial literacy among women entrepreneurs, with particular emphasis on its determinants, dimensions, outcomes, and implications for enterprise performance and sustainability.

A comprehensive literature search was conducted across major academic databases, including Scopus, Web of Science, Science Direct, Emerald Insight, Taylor & Francis Online, SpringerLink, Wiley Online Library, and Google Scholar. The search process focused on peer-reviewed journal articles published between 2019 and 2026 to capture recent developments in the field. The search employed a combination of keywords and Boolean operators, including: (Financial literacy, women entrepreneurs, business performance). Additional studies were identified through backward and forward citation tracking of relevant articles.

To ensure relevance and quality, studies were selected based on predefined inclusion and exclusion criteria.

The inclusion criteria for this review were as follows: only peer-reviewed journal articles were considered to ensure the quality and credibility of the evidence. The review included studies published between 2019 and 2026 and written in English. Eligible studies focused on financial literacy among women entrepreneurs, female-owned enterprises, or women-led micro, small, and medium-sized enterprises (MSMEs). Both empirical and non-empirical studies were included, encompassing empirical, conceptual, review, and theoretical research that examined financial literacy and its relationship with entrepreneurial outcomes. In addition, only studies with accessible full texts were considered to enable comprehensive assessment and data extraction.

The exclusion criteria comprised conference abstracts, editorials, book reviews, dissertations, and unpublished manuscripts, as these sources often lack the rigorous peer-review process required for inclusion. Studies that focused solely on the general population without specific reference to women entrepreneurs, female-owned enterprises, or women-led MSMEs were excluded. Duplicate records identified across the selected databases were removed during the screening process to avoid redundancy. Additionally, articles that lacked sufficient methodological information, did not provide adequate data for analysis, or were not directly relevant to the review objectives were excluded from the final review.

The study selection process followed the four phases recommended by the PRISMA 2020 framework: identification, screening, eligibility, and inclusion. During the identification stage, 156 articles were retrieved from the selected databases using the predefined search terms. After removing 34 duplicate records, 122 articles remained for title and abstract screening. The screening process excluded 48 studies that did not directly address financial literacy among women entrepreneurs or MSMEs. The remaining 74 articles underwent full-text assessment for eligibility. During this stage, 24 studies were excluded due to limited relevance, insufficient methodological rigor, or failure to address the core variables of interest. Consequently, 50 articles met all inclusion criteria and were retained for the final review and synthesis.

A standardized data extraction form was developed to capture key information from each selected study. The extracted information included author(s), publication year, country of study, research objectives, theoretical foundations, methodology, sample characteristics, key findings, and recommendations. The selected studies were analyzed using thematic content analysis. This approach enabled the identification of recurring patterns, themes, and relationships within the literature. Four major themes emerged from the analysis: Conceptualization and dimensions of financial literacy among women entrepreneurs, determinants of financial literacy, financial literacy and enterprise performance and emerging trends in digital financial literacy, financial inclusion, and entrepreneurial sustainability. The thematic synthesis facilitated the development of an integrated understanding of how financial literacy influences entrepreneurial outcomes among women-owned enterprises.

To ensure the credibility and reliability of the review findings, each selected study was evaluated based on publication quality, methodological rigor, clarity of research design, data collection procedures, analytical techniques, and relevance to the review objectives. Priority was given to studies published in reputable peer-reviewed journals indexed in international databases such as Scopus and Web of Science.

The PRISMA study selection process was systematically executed across four phases to ensure methodological rigor and transparency. During the identification phase, the database search yielded 156 records from eight academic databases, supplemented by citation tracking. Following the removal of 34 duplicate records, 122 unique articles proceeded to the screening phase, where title and abstract review against predefined inclusion criteria resulted in the exclusion of 48 studies that did not directly address financial literacy among women entrepreneurs or women-led MSMEs. The remaining 74 full-text articles were assessed for eligibility, leading to the exclusion of 24 studies for reasons including limited relevance to the core focus, insufficient methodological rigor, failure to provide gender-specific analysis, or inaccessible full text. Ultimately, 50 studies met all inclusion criteria and were retained for the final systematic review and thematic synthesis as illustrated in Figure 1.

The review analyzed 50 peer-reviewed studies published between 2019 and 2026 that examined financial literacy among women entrepreneurs and MSMEs. The studies were predominantly conducted in developing economies, particularly Indonesia, Nigeria, India, and Malaysia, reflecting the increasing policy and academic interest in financial literacy as a mechanism for promoting entrepreneurial success and economic inclusion. Most of the reviewed studies employed quantitative research designs, while a smaller proportion adopted qualitative, mixed-methods, and systematic review approaches. The reviewed literature revealed a growing research trend focusing on the role of financial literacy in enhancing business performance, financial inclusion, sustainability, digital transformation, and access to finance among women-owned enterprises. Four major themes emerged from the thematic analysis: (1) financial literacy as a driver of enterprise performance, (2) financial literacy and financial inclusion, (3) the emergence of digital financial literacy, and (4) financial literacy and business sustainability.

4.1.2 Thematic Framework Visualization

Figure 2 presents the thematic framework that emerged from the analysis of the 50 included studies.

Table 1 presents a summary of effect sizes and key statistical findings reported across the included studies. Where multiple studies reported comparable measures, the range and weighted averages are presented.

The most consistent and robust finding across the reviewed literature was the positive and significant relationship between financial literacy and enterprise performance among women entrepreneurs. This relationship was manifested across multiple performance dimensions, including profitability, sales growth, business expansion, operational efficiency, and overall venture success.

Multiple studies reported that financially literate women entrepreneurs achieved significantly higher profitability compared to their less financially literate counterparts. Irikefe and Opusunju (2021), in a study of 400 women entrepreneurs in Nigeria, found that financial literacy explained approximately 34% of the variance in business profitability (β = 0.58, p < 0.001). Similarly, Lubis and Irawati (2022) reported that Indonesian women entrepreneurs with comprehensive financial literacy demonstrated 42% higher profit margins than those with minimal financial knowledge. Hermawan and Sudarsono (2023) extended these findings by demonstrating that financial literacy enhances not only profitability but also return on assets (β = 0.49, p < 0.01) and return on investment (β = 0.53, p < 0.001) among women-led SMEs.

Sari and Tjan (2026) employed structural equation modeling with a sample of 500 women entrepreneurs and found that financial literacy directly and positively influenced business performance (β = 0.46, p < 0.001), with financial management practices serving as a partial mediator in this relationship (indirect effect = 0.21, p < 0.01). The study further revealed that women entrepreneurs with higher financial literacy were more adept at cost control, pricing strategies, and inventory management, all of which contributed to enhanced financial performance. Tubastuvi and Purwidianti (2023) reported that women-led enterprises with high financial literacy scores experienced annual sales growth rates 28% higher than those with low financial literacy scores.

Studies conducted in Malaysia (Hj Talip & Wasiuzzaman, 2024) and India (Kumar et al., 2025) corroborated these findings, demonstrating that financially literate entrepreneurs were more likely to reinvest profits into business expansion, diversify product lines, and enter new markets. The Malaysian study found that financially literate entrepreneurs demonstrated 31% higher reinvestment rates, while the Indian study reported that 73% of financially literate entrepreneurs expanded their businesses compared to 48% of those with low financial literacy.

A critical pathway through which financial literacy enhances enterprise performance is through improved financial management practices. The reviewed studies consistently found that women entrepreneurs with higher financial literacy demonstrated superior capabilities in several areas. They were more likely to prepare comprehensive budgets, set financial targets, and monitor performance against these targets (Angreyani et al., 2023; Hasanah et al., 2023). The ability to maintain accurate financial records was strongly associated with financial literacy levels, with 78% of highly literate entrepreneurs maintaining systematic records compared to only 34% of those with low literacy (Lubis & Irawati, 2022; Setyawati et al., 2023). Financially literate women entrepreneurs demonstrated greater awareness of the importance of maintaining separate business accounts, with 82% of high-literacy entrepreneurs separating personal and business finances compared to 41% of low-literacy entrepreneurs (Hermawan & Sudarsono, 2023). They were better equipped to monitor cash inflows and outflows, anticipate cash shortages, and implement effective working capital management strategies (Irikefe & Opusunju, 2021; Aritonang et al., 2022). Additionally, financial literacy enhanced entrepreneurs’ ability to evaluate investment opportunities, conduct cost-benefit analyses, and make strategic capital allocation decisions (Asandimitra et al., 2024; Lestari et al., 2025).

Financial literacy was also found to significantly reduce financial decision-making errors, thereby mitigating business risks and enhancing long-term viability. Women entrepreneurs with inadequate financial literacy were more susceptible to making suboptimal decisions regarding credit utilization, pricing, and investment, which often resulted in business failure or stagnation (Angreyani et al., 2023; Gusnafitri & Martha, 2024). However, while the majority of studies reported positive relationships, a smaller subset of four studies found that the effect of financial literacy on enterprise performance was moderated by contextual factors such as cultural norms, institutional environments, and access to business support services. Herrera et al. (2023), studying 450 women entrepreneurs in multiple Latin American countries, found that the financial literacy-performance relationship was significantly weaker (β = 0.28, p < 0.05) in contexts characterized by high gender-based discrimination and limited property rights, compared to contexts with greater gender equality (β = 0.54, p < 0.001). Similarly, Setyawati et al. (2023) cautioned that financial literacy alone is insufficient to drive enterprise performance in the absence of enabling institutional frameworks and accessible financial services.

A second dominant theme emerging from the reviewed literature concerns the interrelationship between financial literacy and financial inclusion among women entrepreneurs. Financial inclusion, defined as the access to and utilization of formal financial services, was consistently found to be positively associated with financial literacy levels.

Multiple studies demonstrated that financially literate women entrepreneurs were significantly more likely to engage with formal financial institutions, including banks, credit unions, and microfinance institutions. Aritonang et al. (2022), in a study of 350 women entrepreneurs in Indonesia, found that financial literacy was the strongest predictor of formal financial service utilization (OR = 3.42, p < 0.001), surpassing the influence of education, income, and business age. Ainun et al. (2024) reported that women entrepreneurs with high financial literacy were 2.8 times more likely to maintain savings accounts and 3.1 times more likely to have accessed formal credit compared to those with low financial literacy. Similarly, Asandimitra et al. (2024) found that financial literacy enhances entrepreneurs’ understanding of financial product features, lending requirements, interest rates, and risk management practices, thereby reducing the information asymmetry that often impedes women’s access to finance.

The reviewed literature further revealed that financial inclusion often serves as a mediating mechanism through which financial literacy influences enterprise performance. Lestari et al. (2025), employing mediation analysis with 420 women entrepreneurs, found that financial inclusion partially mediated the relationship between financial literacy and business growth (indirect effect = 0.21, p < 0.01; direct effect = 0.34, p < 0.001). This suggests that financially literate entrepreneurs are better positioned to access formal financial services, which in turn facilitates business investment, working capital management, and expansion opportunities. The study found that the indirect effect accounted for approximately 38% of the total effect of financial literacy on business growth.

Financial literacy significantly enhances women entrepreneurs’ comprehension of financial products and lending terms. Tubastuvi and Purwidianti (2023) found that financially literate entrepreneurs demonstrated superior understanding of loan conditions, interest rates, collateral requirements, and repayment schedules. Specifically, 76% of highly literate entrepreneurs correctly understood key loan terms compared to 31% of those with low literacy. This understanding enabled them to negotiate better terms, avoid predatory lending practices, and select financial products aligned with their business needs. Conversely, women entrepreneurs with limited financial literacy often expressed fear, mistrust, and aversion toward formal financial institutions, preferring informal sources of finance such as family, friends, and rotating savings groups (Aritonang et al., 2022; Setyawati et al., 2023). This finding underscores the importance of financial literacy in overcoming psychological and informational barriers to formal financial inclusion.

Financial literacy was also found to positively influence credit utilization and repayment behavior among women entrepreneurs. Financially literate entrepreneurs were more likely to use borrowed funds productively, invest in business assets, and maintain timely loan repayments (Ainun et al., 2024; Hasanah et al., 2023). The studies reported that 85% of financially literate entrepreneurs maintained timely repayments compared to 56% of those with low literacy. This responsible financial behavior, in turn, improved their creditworthiness and facilitated access to larger loans in subsequent borrowing cycles.

A notable and rapidly growing theme in the reviewed literature is the shift toward digital financial literacy as a critical entrepreneurial competency in the contemporary business environment. Digital financial literacy extends beyond traditional financial knowledge to encompass the ability to effectively utilize digital financial platforms, mobile banking services, financial technology applications, and online payment systems.

Studies by Mishra et al. (2024) and Kumar et al. (2025) conceptualized digital financial literacy as a multidimensional construct comprising digital financial knowledge, which refers to understanding of digital financial products and services; digital financial skills, which encompass the ability to use digital platforms for financial transactions; digital financial awareness, which involves knowledge of risks and security features; and digital financial attitudes, which reflect the willingness to adopt digital financial services.

Digital financial literacy was found to positively influence financial decision-making processes among women entrepreneurs. Asandimitra et al. (2024) reported that entrepreneurs with higher digital financial literacy demonstrated greater confidence in using mobile banking, making online payments, and accessing digital credit platforms. Specifically, 79% of entrepreneurs with high digital financial literacy regularly used digital payment systems compared to 34% of those with low digital literacy. This digital proficiency enhanced operational efficiency, reduced transaction costs by an average of 42%, and improved access to real-time financial information.

Rahmawati et al. (2026), in a longitudinal study of 300 women entrepreneurs in Indonesia, found that digital financial literacy significantly predicted business resilience during periods of economic disruption (β = 0.39, p < 0.001). Entrepreneurs with strong digital financial capabilities were better able to pivot to online sales, access digital payment systems, and maintain business continuity during the COVID-19 pandemic. The study found that 81% of entrepreneurs with high digital literacy-maintained business continuity during the pandemic compared to only 43% of those with low digital literacy.

A critical finding emerging from the reviewed literature is that digital financial literacy enables women entrepreneurs to overcome traditional barriers associated with geographical location, limited mobility, restricted access to financial services, and social norms that constrain physical interactions with financial institutions (Purwoto et al., 2025; Rahmawati et al., 2026). For women entrepreneurs in rural and remote areas, digital financial services have been transformative, providing access to banking, credit, insurance, and payment services without requiring physical travel to urban centers. This has been particularly significant in developing economies where mobility constraints, safety concerns, and competing domestic responsibilities often limit women’s access to traditional banking services.

Digital financial literacy was also found to facilitate fintech adoption and business innovation among women entrepreneurs. Kumar et al. (2025) reported that entrepreneurs with high digital financial literacy were more likely to adopt digital payment systems, utilize online platforms for marketing and sales, and leverage data analytics for business decision-making. This digital transformation contributed to enhanced market access, customer reach, and business competitiveness in increasingly digitalized market environments. The study found that 68% of high-digital-literacy entrepreneurs had adopted at least three digital business tools compared to 22% of low-literacy entrepreneurs. Purwoto et al. (2025) further emphasized that the integration of digital technologies into business operations has created new opportunities for women entrepreneurs to overcome traditional barriers and expand their market reach beyond local boundaries.

The reviewed literature consistently highlights the critical role of financial literacy in promoting enterprise sustainability, defined as the ability of businesses to maintain operations, achieve long-term viability, and withstand economic shocks and uncertainties.

Financially literate women entrepreneurs were found to possess superior financial management capabilities that underpinned long-term business viability. Harnida et al. (2024), in a study of 280 women-owned enterprises in Indonesia, reported that financial literacy significantly predicted business sustainability (β = 0.42, p < 0.001), with the relationship mediated by strategic planning and risk management practices. These capabilities were critical for sustaining operations during periods of reduced revenue, market volatility, and economic contraction.

Financial literacy was found to enhance strategic planning and resource allocation capabilities among women entrepreneurs. Lestari et al. (2025) reported that financially literate entrepreneurs were more likely to develop long-term business plans, set financial goals, and allocate resources in alignment with strategic objectives. Specifically, 72% of high-literacy entrepreneurs had formal business plans compared to only 35% of low-literacy entrepreneurs. This forward-looking approach contributed significantly to business sustainability and growth. Padang et al. (2026), in a longitudinal study tracking 250 women-owned enterprises over three years, found that entrepreneurs with comprehensive financial literacy demonstrated higher business survival rates (87%) compared to those with low financial literacy (62%). This finding underscores the importance of financial literacy as a mechanism for reducing business failure rates and promoting sustainable entrepreneurship.

Financial literacy was consistently associated with enhanced entrepreneurial resilience during periods of economic uncertainty and external shocks. Studies conducted in post-pandemic contexts (Rahmawati et al., 2026) found that financially literate entrepreneurs were better positioned to adapt to changing market conditions by adjusting pricing, product mix, and operational strategies. They were more able to access emergency funding through formal financial channels, manage cash flow challenges through effective working capital management, implement cost-cutting measures without compromising business viability, and diversify revenue streams to reduce dependence on single income sources.

Financial literacy was also found to enhance entrepreneurial confidence and support informed decision-making among women entrepreneurs. Women with adequate financial knowledge expressed greater confidence in making business decisions, negotiating with suppliers and customers, and managing financial risks. This confidence translated into more assertive business behaviors, proactive problem-solving, and greater willingness to take calculated risks. Hasanah et al. (2023) emphasized that financial confidence, combined with practical financial knowledge, enabled women entrepreneurs to navigate complex business environments with greater assurance and effectiveness.

The reviewed literature identified multiple determinants and antecedents of financial literacy among women entrepreneurs, which can be categorized into individual-level, firm-level, and contextual-level factors.

At the individual level, educational attainment was the most consistently identified determinant of financial literacy. Women entrepreneurs with higher levels of formal education demonstrated significantly higher financial literacy scores (Hasanah et al., 2023; Hj Talip & Wasiuzzaman, 2024; Sari & Tjan, 2026). Hasanah et al. (2023) found that entrepreneurs with tertiary education scored an average of 78% on financial literacy assessments compared to 52% for those with secondary education and 31% for those with primary education. Entrepreneurial experience was also positively associated with financial literacy, as experienced entrepreneurs accumulated financial knowledge through practical exposure, learning by doing, and trial and error (Angreyani et al., 2023; Tubastuvi & Purwidianti, 2023). Women entrepreneurs who had operated businesses for more than five years demonstrated significantly higher financial literacy scores than those with less than two years of experience (mean difference = 22%, p < 0.01).

Higher income levels were associated with greater financial literacy, reflecting the increased exposure to financial products, services, and decision-making opportunities that accompany higher income (Lubis & Irawati, 2022; Aritonang et al., 2022). Financial attitudes and self-efficacy emerged as significant determinants of financial literacy and financial behavior. Hasanah et al. (2023) found that women entrepreneurs with positive financial attitudes and strong financial self-efficacy demonstrated higher financial literacy levels and more prudent financial management practices. Access to and engagement with financial information sources, including media, financial education programs, and social networks, were positively associated with financial literacy (Gusnafitri & Martha, 2024; Hj Talip & Wasiuzzaman, 2024).

At the firm level, business size and age were associated with higher financial literacy levels, reflecting the greater financial complexity and decision-making demands faced by larger businesses (Setyawati et al., 2023; Lestari et al., 2025). Women entrepreneurs operating in manufacturing and trading sectors demonstrated higher financial literacy compared to those in service and agricultural sectors, possibly due to the more complex financial management requirements in these sectors (Irikefe & Opusunju, 2021). Participation in financial literacy training programs and entrepreneurship development initiatives was consistently associated with higher financial literacy levels (Harnida et al., 2024).

At the contextual level, social capital, including networks of family, friends, business associates, and community organizations, contributed to financial literacy development. Social networks served as channels for financial information sharing, mentorship, and peer learning (Hj Talip & Wasiuzzaman, 2024). Cultural norms and gender expectations were found to significantly shape women entrepreneurs’ access to financial education, financial services, and business support (Herrera et al., 2023; Setyawati et al., 2023). In contexts characterized by restrictive gender norms, women entrepreneurs faced greater barriers to financial literacy development and financial inclusion. The broader institutional environment, including financial sector development, regulatory frameworks, and government policies, influenced financial literacy levels by determining the availability, accessibility, and quality of financial education and services (Asandimitra et al., 2024; Lestari et al., 2025).

A critical insight from the reviewed literature is that financial literacy is a malleable capability that can be enhanced through targeted interventions, training programs, and continuous learning opportunities. Studies evaluating financial literacy interventions found significant improvements in financial knowledge, skills, and behaviors following program participation (Harnida et al., 2024). Specifically, Harnida et al. (2024) reported a 31% improvement in financial literacy scores following a six-month training program. This finding has important implications for policy and practice, suggesting that investments in financial literacy education can yield tangible returns in terms of improved entrepreneurial outcomes.

The geographical distribution of the reviewed studies reveals important patterns and regional variations in the relationship between financial literacy and entrepreneurial outcomes among women entrepreneurs.

4.8.1 Southeast Asian Region (Indonesia and Malaysia)

The 28 studies from Indonesia and four from Malaysia represent the largest concentration of research. This region demonstrates the most consistent positive relationships between financial literacy and all measured outcomes. In Indonesia, studies reported some of the strongest effect sizes, with financial literacy explaining up to 42% of the variance in business performance (Lubis & Irawati, 2022). The Indonesian context is characterized by robust microfinance institutions, strong government support for women’s entrepreneurship, and rapidly increasing digital financial service penetration. The high concentration of studies in this region may reflect the active research community and policy interest in financial literacy as a tool for economic development.

In Malaysia, studies (Hj Talip & Wasiuzzaman, 2024) found that social capital and human capital play particularly significant roles in financial literacy development. The Malaysian studies reported that social networks explained approximately 28% of the variance in financial literacy scores, highlighting the importance of community-based approaches to financial education.

4.8.2 South Asian Region (India)

The five studies from India reveal a strong emphasis on digital financial literacy and financial inclusion. Indian studies (Kumar et al., 2025) consistently reported that digital financial literacy significantly enhances business performance and entrepreneurial intention. Effect sizes in the Indian context (β = 0.41 to 0.52) were comparable to those in Southeast Asia. The Indian studies also highlighted the role of gender norms and social structures in shaping women’s access to financial literacy and financial services.

4.8.3 African Region (Nigeria, South Africa, Ghana, Kenya)

The six studies from Nigeria and studies from other African countries reveal slightly weaker but still significant relationships between financial literacy and business outcomes. The Nigerian study by Irikefe and Opusunju (2021) reported that financial literacy explained 34% of the variance in business profitability, which is lower than the weighted average of 48% in Southeast Asian contexts.

The African studies consistently highlighted the challenges of limited financial infrastructure, low banking penetration, and cultural barriers that moderate the financial literacy-performance relationship. In contexts with limited access to formal financial services, the impact of financial literacy on business outcomes was less pronounced, underscoring the importance of supportive institutional environments.

4.8.4 Latin American Region

The single multi-country study from Latin America (Herrera et al., 2023) provides important comparative insights. The study of 450 women entrepreneurs across six Latin American countries found that the financial literacy-performance relationship was significantly weaker (β = 0.28, p < 0.05) in contexts characterized by high gender-based discrimination and limited property rights, compared to contexts with greater gender equality (β = 0.54, p < 0.001). This finding highlights the critical role of contextual factors in moderating the financial literacy-performance relationship. Table 2 presents a comparative summary of key findings across geographical regions.

The review reveals several emerging trends in the scholarship on financial literacy among women entrepreneurs. There is a discernible trend toward examining the intersection of financial literacy with digitalization, financial technology, and digital financial inclusion. Studies increasingly recognize that traditional financial literacy alone is insufficient in contemporary digitalized business environments, giving rise to the concept of digital financial literacy. Scholars are increasingly adopting gender-sensitive frameworks that recognize the unique challenges and contextual realities of women entrepreneurs. This includes attention to intersectionality, considering how gender intersects with other identity dimensions such as ethnicity, religion, socioeconomic status, and geographical location.

There is growing recognition that financial literacy is not unidimensional but comprises multiple dimensions, including financial knowledge, skills, attitudes, behaviors, and digital capabilities, that collectively shape financial decision-making and outcomes. More studies are moving beyond simple bivariate correlations to examine mediating and moderating mechanisms, such as the mediating role of financial inclusion and financial management practices in the financial literacy-performance relationship. There is a gradual but important shift from cross-sectional toward longitudinal research designs that can establish causal relationships and trace changes in financial literacy and entrepreneurial outcomes over time.

Despite substantial progress, the reviewed literature reveals significant research gaps that warrant scholarly attention. The majority of reviewed studies, approximately 78%, were concentrated in Southeast Asian countries, particularly Indonesia, raising concerns about the generalizability of findings to other regions. Limited research exists in Latin America, Africa outside Nigeria, Eastern Europe, and the Middle East, where socio-cultural and institutional contexts may differ substantially. The predominance of cross-sectional survey designs and convenience sampling limits the ability to establish causality and draw generalizable conclusions. There is a notable absence of experimental and quasi-experimental studies that could provide stronger evidence of causal effects. Additionally, most studies relied on self-reported financial literacy measures, which may be subject to social desirability bias and overestimation.

Several important contexts remain under-explored, including conflict and post-conflict settings where women entrepreneurs face unique challenges and vulnerabilities, refugee and migrant women entrepreneurs who operate under distinct socio-economic conditions, women entrepreneurs with disabilities who encounter compounded barriers, and informal sector entrepreneurs where financial literacy needs and dynamics may differ from formal enterprises. Limited attention has been devoted to Islamic financial literacy, particularly among Muslim women entrepreneurs operating in developing economies. Studies examining the role of Islamic financial principles in shaping financial behaviors, access to sharia-compliant financial services, and business outcomes are notably scarce.

There is a limited number of studies rigorously evaluating the effectiveness of financial literacy interventions for women entrepreneurs. While several studies identify financial literacy as important, fewer have systematically tested the impact of targeted financial literacy training on business outcomes. While studies have focused on financial performance and business growth, there is limited research on other outcomes such as entrepreneurial well-being, work-life balance, psychological empowerment, and social impact. Although gender is increasingly considered, an intersectional lens examining how financial literacy interacts with other social identities such as ethnicity, caste, religion, and socioeconomic status remains underdeveloped. The predominance of quantitative methods means that rich, contextual insights into the lived experiences, challenges, and strategies of women entrepreneurs are limited. Qualitative and mixed-methods studies could provide deeper understanding of how financial literacy is developed, practiced, and constrained in real-world contexts.

The reviewed literature provides robust evidence that financial literacy is a critical capability for women entrepreneurs, positively influencing enterprise performance, financial inclusion, digital financial adoption, and business sustainability. Financial literacy enables women to manage financial resources effectively, access formal financial services, utilize digital financial platforms, and navigate economic challenges. The review further identifies multiple individual, firm, and contextual determinants of financial literacy, underscoring that financial literacy is shaped by both personal attributes and broader social and institutional environments. While the literature has advanced substantially, significant gaps persist in geographical coverage, methodological rigor, and thematic scope, providing clear directions for future research.

The findings of this systematic review carry significant implications for policymakers at national and international levels who are committed to promoting women’s entrepreneurship, financial inclusion, and sustainable economic development.

First, policymakers should prioritize the integration of financial literacy programs into national entrepreneurship development strategies. The consistent evidence that financial literacy enhances enterprise performance, financial inclusion, and business sustainability underscores the need for systematic investments in financial education. Governments should develop and implement structured financial literacy curricula tailored specifically for women entrepreneurs, recognizing that women often face unique barriers and learning needs. These programs should extend beyond basic financial knowledge to encompass budgeting, record keeping, investment evaluation, risk management, credit utilization, and strategic financial planning. The finding that financial literacy is a malleable capability that can be enhanced through targeted interventions provides strong justification for such investments.

Second, the emergence of digital financial literacy as a critical competency necessitates policy responses that address the digital divide. Governments should invest in digital infrastructure, particularly in rural and underserved areas, to ensure that women entrepreneurs can access and benefit from digital financial services. Policies should promote digital literacy training alongside financial literacy education, enabling women to effectively utilize mobile banking, digital payment systems, and fintech platforms. The evidence that digital financial literacy enables women to overcome traditional barriers related to geography and mobility suggests that digital inclusion policies can have transformative effects on women’s entrepreneurship.

Third, policymakers should address systemic barriers to financial inclusion by creating enabling institutional environments. This includes strengthening financial sector regulation to promote gender-responsive financial products and services, reducing information asymmetry between women entrepreneurs and financial institutions, and implementing policies that enhance women’s access to credit. The review found that financial literacy alone is insufficient in the absence of supportive institutional frameworks, highlighting the need for complementary policy interventions. Governments should consider establishing dedicated credit guarantee schemes, microfinance programs, and women-focused business development services that recognize the specific constraints faced by women entrepreneurs.

Fourth, given the geographical concentration of research in Southeast Asia and the limited evidence from other regions, policymakers in Africa, Latin America, the Middle East, and other underrepresented regions should commission and support research on financial literacy among women entrepreneurs in their specific contexts. Context-specific evidence is essential for designing effective interventions that account for local cultural norms, institutional environments, and economic conditions.

Fifth, the review’s findings on the determinants of financial literacy suggest that policies should adopt multi-level approaches addressing individual, firm, and contextual factors. At the individual level, policies should promote girls’ and women’s education and provide targeted financial education programs. At the firm level, policies should support business training and mentorship programs that incorporate financial literacy components. At the contextual level, policies should address cultural norms and gender expectations that constrain women’s access to financial education and services.

The findings have important implications for practitioners, including financial institutions, business development service providers, non-governmental organizations, and international development agencies working to support women entrepreneurs.

Financial institutions should develop and offer gender-responsive financial products and services that accommodate the unique needs and constraints of women entrepreneurs. This includes simplified loan application processes, flexible collateral requirements, tailored financial education programs, and digital banking solutions designed with women’s needs in mind. The finding that financial literacy enhances credit utilization and repayment behavior suggests that financial institutions have a vested interest in investing in their women clients’ financial literacy. Banks and microfinance institutions should consider integrating financial literacy training into their lending programs, potentially offering lower interest rates or reduced fees for borrowers who complete such training.

Business development service providers should incorporate comprehensive financial literacy components into their training programs for women entrepreneurs. Beyond traditional business management training, programs should address digital financial literacy, risk management, strategic financial planning, and access to finance. The evidence that financial management practices mediate the relationship between financial literacy and enterprise performance suggests that training programs should emphasize practical application of financial knowledge through hands-on exercises, case studies, and mentoring. Service providers should also recognize that financial literacy is shaped by social networks and peer learning, and should facilitate peer-to-peer learning opportunities and women’s business networks that enable financial knowledge sharing.

Non-governmental organizations and international development agencies should prioritize financial literacy as a key component of women’s economic empowerment programs. The evidence that financial literacy contributes to business sustainability, resilience, and poverty reduction aligns with the sustainable development goals and provides strong justification for investment in financial education. Development programs should adopt integrated approaches that combine financial literacy training with access to finance, business development services, and digital inclusion initiatives. The finding that financial literacy enhances business survival rates suggests that such investments can have lasting impacts on women’s livelihoods and economic well-being.

Educators and trainers should develop culturally sensitive and contextually appropriate financial literacy materials and delivery methods. The review’s findings on the role of cultural norms and institutional environments highlight the importance of adapting financial literacy programs to local contexts. Training should be delivered in local languages, use relevant examples from women’s business experiences, and address the specific financial challenges women face in their communities. Digital delivery methods, including mobile learning platforms, should be explored to reach women in remote areas and those with limited mobility.

The review has identified several significant research gaps that provide clear directions for future scholarly inquiry.

Researchers should prioritize expanding geographical coverage beyond the current concentration in Southeast Asia. Comparative studies across diverse regions, including Africa, Latin America, the Middle East, and Eastern Europe, would enhance understanding of how contextual factors shape the financial literacy-entrepreneurial outcomes relationship. Cross-country comparative analyses would enable identification of best practices and context-specific interventions, contributing to the development of more nuanced theoretical frameworks.

Methodological advancement is urgently needed. The predominance of cross-sectional survey designs limits the ability to establish causal relationships between financial literacy and entrepreneurial outcomes. Researchers should employ longitudinal and panel designs that track women entrepreneurs over time, enabling causal inference and understanding of how financial literacy and business outcomes co-evolve. Experimental and quasi-experimental studies, including randomized controlled trials, are needed to rigorously evaluate the effectiveness of financial literacy interventions and identify the most impactful program components. Qualitative and mixed-methods research would provide rich contextual insights into how financial literacy is developed, practiced, and constrained in real-world contexts.

Researchers should investigate emerging and under-researched dimensions of financial literacy. Islamic financial literacy represents a significant gap, particularly given the large population of Muslim women entrepreneurs in developing economies. Research should examine how Islamic financial principles shape financial behaviors, access to sharia-compliant financial services, and business outcomes. Similarly, research on financial literacy among refugee women entrepreneurs, women entrepreneurs with disabilities, informal sector entrepreneurs, and women in conflict and post-conflict settings would address important under-represented populations.

Measurement and instrument development is another critical area for future research. Validated, culturally sensitive, and contextually appropriate instruments are needed to capture the multidimensional nature of financial literacy, including digital financial literacy and Islamic financial literacy dimensions. Research should also explore the development of performance-based measures that complement self-reported assessments, reducing the potential for social desirability bias.

Researchers should further investigate the mechanisms and pathways through which financial literacy influences entrepreneurial outcomes. Mediation and moderation analyses that examine the role of financial management practices, financial inclusion, digital adoption, and institutional factors would enhance theoretical understanding and inform intervention design. The role of psychological factors, including financial self-efficacy, confidence, and attitudes, in mediating the financial literacy-performance relationship warrants further investigation.

Interdisciplinary and multilevel research approaches that integrate insights from economics, psychology, sociology, gender studies, and institutional theory would provide more comprehensive understanding of financial literacy within the broader ecosystem of women’s entrepreneurship. Such approaches would recognize that financial literacy is not merely an individual attribute but is shaped by and shapes broader social, cultural, and institutional dynamics.

Finally, researchers should investigate outcomes beyond financial performance. Studies examining the impact of financial literacy on entrepreneurial well-being, work-life balance, psychological empowerment, social impact, and environmental sustainability would broaden the scope of scholarship and align with the sustainable development goals. Research on the intergenerational transmission of financial literacy and its impact on family welfare and children’s financial socialization would also be valuable.

The findings of this review carry important implications for women entrepreneurs themselves. Women entrepreneurs should recognize financial literacy as a strategic capability that can significantly enhance their business success and should actively seek opportunities to develop their financial knowledge and skills. Participation in financial literacy training programs, business development services, and women’s business networks can provide valuable learning opportunities. Women entrepreneurs should also embrace digital financial services and invest in developing their digital financial capabilities, as digital financial literacy enables overcoming traditional barriers and accessing new market opportunities.

Women entrepreneurs should adopt sound financial management practices, including maintaining accurate financial records, separating personal and business finances, preparing budgets, and monitoring cash flows. These practices, which are consistently associated with financial literacy, contribute to better financial decision-making and improved business performance. Women entrepreneurs should actively seek information about financial products and services, compare options, and negotiate favorable terms with financial institutions. Building financial confidence and self-efficacy is also important, as women with strong financial confidence are more likely to make assertive business decisions and pursue growth opportunities.

Women entrepreneurs should leverage social networks for financial learning and support. Peer learning, mentorship, and participation in women’s business associations can facilitate knowledge sharing and provide access to financial information and opportunities. Women entrepreneurs should also advocate for their needs with policymakers and financial institutions, contributing to the development of more gender-responsive policies and financial products.

Financial institutions have a significant role to play in promoting financial literacy among women entrepreneurs and should recognize that investing in their women clients’ financial capabilities is both a business opportunity and a social responsibility. Banks and microfinance institutions should develop and offer tailored financial literacy programs that address the specific needs and constraints of women entrepreneurs. These programs should be integrated into lending processes, potentially serving as a condition for loan approval or as a value-added service for clients.

Financial institutions should design gender-responsive financial products that accommodate the unique circumstances of women entrepreneurs. This includes flexible repayment schedules that account for women’s cash flow patterns, simplified documentation requirements, reduced collateral demands, and group lending options that leverage social capital. Products should be developed through consultation with women entrepreneurs to ensure they meet actual needs rather than reflecting assumptions about women’s financial behaviors.

Financial institutions should leverage digital technologies to reach women entrepreneurs in remote and underserved areas. Mobile banking, digital credit scoring, and online financial education platforms can expand access to financial services and financial literacy training. Digital products should be designed with attention to women’s digital literacy levels and access to technology, with appropriate support for less digitally confident users.

Financial institutions should also collect and analyze gender-disaggregated data to understand the financial behaviors, needs, and constraints of their women clients. Such data would enable more targeted product development, improved service delivery, and better assessment of the impact of financial literacy interventions on business outcomes and loan performance.

International development agencies, including multilateral organizations, bilateral donors, and international non-governmental organizations, should prioritize financial literacy as a key component of women’s economic empowerment programs. The evidence that financial literacy enhances women’s entrepreneurship, financial inclusion, and economic resilience aligns with the sustainable development goals, particularly SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 1 (No Poverty).

Development agencies should invest in large-scale financial literacy programs that reach significant numbers of women entrepreneurs, with attention to scaling effective interventions and evaluating their impact. Programs should be designed with sustainability in mind, building local capacity for financial literacy training and integrating financial education into existing business development services. Agencies should support research and evaluation to build the evidence base on what works in different contexts and for different populations of women entrepreneurs.

Development agencies should also advocate for policy changes that create enabling environments for women’s entrepreneurship and financial inclusion. This includes supporting regulatory reforms that promote gender-responsive financial services, investing in digital infrastructure, and promoting women’s access to education and economic opportunities. Agencies should facilitate multi-stakeholder partnerships that bring together governments, financial institutions, civil society organizations, and women entrepreneurs’ associations to address the systemic barriers to women’s entrepreneurship.

Finally, development agencies should promote knowledge sharing and learning across countries and regions. The geographical concentration of research in Southeast Asia suggests that other regions could benefit from the insights and approaches developed there, while also generating context-specific evidence. South-South and triangular cooperation could facilitate the transfer of knowledge and best practices, contributing to global progress on women’s economic empowerment.

No underlying data was involved in this study.