A Study on the Impact of Financial Literacy Programs on Entrepreneurial Success in India: Insights for Sustainable Development

Abstract

Financial literacy is starting to become more widely understood as an important part of being a successful entrepreneur, especially in developing countries such as India. This research employs secondary data from peer-reviewed journals up to 2019 to examine how financial literacy programs affect the entrepreneurship outcome. The important criteria that we examine include levels of financial literacy, loan repayment rates, company longevity, and savings growth. Complex statistical methods like logistic regression and multiple linear regression were used in order to find correlations and derive useful insights. The data reveal that financial literacy is a strong predictor of each of the indicators and, more specifically, that business owners who are more financially literate appear to achieve noticeably better results. For instance, there is a 4.7 fold higher probability of experiencing success among those whose reading levels are over 70% than among those whose reading levels are below 70%. It's similar too; educated entrepreneurs save on average 22% more than uneducated ones, 10%. Yet these findings show how even modest financial education can greatly increase economic resilience. A conceptual comparison with previous research highlights the distinctive difficulties of India's entrepreneurial environment, which is characterized by financial literacy. The study notes that there are gaps in the research, such as programs developed exclusively for female entrepreneurs and the lack of longitudinal studies, and recommends technology-driven, scalable treatments. This research adds to the body of knowledge by filling in important gaps, offering insights unique to India, and educating policymakers on how to improve entrepreneurial success through focused financial literacy programs.