Financial Literacy and Financial Well-being for the Owners of Small and Micro-Enterprises in Damietta Governorate

Abstract

Purpose: The main purpose of this study is to explore the financial well-being of the owners of small and micro-enterprises (MSEs). Also, it aims to measure the relationship between the dimensions of financial literacy and their financial well-being. Methodology: The population of the study is represented by the owners of small and micro-enterprises in the Damietta governorate. A questionnaire was used to collect data from 384 micro and small enterprises. The data was analyzed, and the model was tested using structural equation modeling (SEM). Findings: Results of the study identified a significant relationship between the dimensions of financial literacy and financial well-being, and those with a high level of financial literacy enjoy better financial well-being. Recommendations and Further Direction: Based on the results identified, the study presents recommendations that could help improve the financial well-being of the owners of small and micro-enterprises. Also, it offers some directions for future research.