Financial culture and financing decisions of small business owners in the context of an economic crisis, 2021

Abstract

The present study investigates the relationship between financial culture and financing decisions among small business owners. It was found that 83% of the respondents exhibit low to moderate levels of financial culture, indicating a lack of financial planning, poor selection of financial products, and deficiencies in debt control. A strong and significant positive correlation was observed between financial culture and financing decisions in the studied context, suggesting that higher levels of financial culture are associated with a greater propensity to make more informed financing decisions. The findings underscore the need to implement strategies that enhance the financial culture of small business owners for making more informed decisions aligned with the organization's strategic vision, particularly during economic downturns. Ultimately, this study provides valuable insights into how financial culture influences the financial decisions of small businesses and emphasizes the importance of financial education in the business context.