The Influence of Financial Culture on SME’s Financial Performance

Abstract

Entrepreneurs are faced with complex financial decisions to turn their businesses around. They make financial decisions in the form of savings, investment and retirement planning, which makes financial culture crucial in business financing decisions and subsequent performance. Decisions made by SME owners need to be madse with a certain level of expertise, which requires financial knowledge, behaviors and attitudes that will enhance the financial performance of the business. The purpose of this research is to know the influence of financial culture on the SMEs’ financial performance in Lebanon. The survey made it possible to deduce the relationship between the financial culture and the financial performance.