The effect of financial literacy on the growth of women-owned small and medium enterprises in Africa

Abstract

In Africa, women-owned small and medium-sized businesses (SMEs) are crucial to both gender equality and economic progress. Nonetheless, research and discussion on the effect of financial literacy on the expansion of these businesses continue. The purpose of this systematic review is to investigate the impact of financial literacy on the expansion and advancement of women-owned small and medium-sized enterprises (SMEs) in Africa. It was carried out using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach. A thorough search strategy was used to locate pertinent English-language studies that examined the connection between financial literacy and the expansion of women-owned SMEs throughout Africa. Important databases were thoroughly examined, such as Google Scholar, Web of Science, PubMed, and Scopus. The selected studies were evaluated for quality, and to identify recurring themes and patterns, the studies underwent quality evaluation, data extraction, and synthesis. The analysis emphasizes how important financial literacy is to improving women-owned SMEs' chances of expanding in Africa. The results show a strong correlation between better financial management, access to finance, business sustainability, and overall business growth and higher financial literacy among female entrepreneurs.