Financial Education and the Reduction of Labor Informality in Micro and Small Enterprises in Trujillo, Peru

Abstract

The objective of this research was to determine how financial education is related to the reduction of labor informality among micro and small entrepreneurs in the city of Trujillo, Peru. The study follows a non-experimental, cross-sectional, and correlational design. A Likert-scale questionnaire was applied to a sample of 245 entrepreneurs selected through simple random sampling. The results show that 53.5% of respondents have a low level of financial knowledge, 65.3% demonstrate limited financial skills, and 78% exhibit inadequate financial attitudes. These factors contribute to a high incidence of informal employment, with only 11.4% of entrepreneurs demonstrating a high level of compliance with their labor obligations. A significant and inverse relationship between the two variables was identified. Finally, the study highlights the need for financial training programs and public policies that promote financial education as a strategy to enhance labor formalization in the micro and small enterprise sector.