A Study of Financial Literacy of Women Entrepreneurs in Nashik District, Maharashtra State

Abstract

Financial literacy is an important factor in improving the performance of entrepreneurs and economic empowerment, especially among women entrepreneurs. Despite the various policies and financial inclusion initiatives in India, women entrepreneurs are still struggling due to a lack of financial literacy and access to financial services. The purpose of the current study is to evaluate the level of financial literacy among women entrepreneurs in Nashik district, Maharashtra State, and to test the relationship between financial literacy and some selected socio-economic variables and business performance. The study adopts a descriptive and analytical research approach. The primary data were collected from women entrepreneurs running micro and small businesses in Nashik district using a structured questionnaire. Financial literacy was measured by a composite scale including budgeting, savings, credit, insurance, investment, and digital financial services. The data analysis was done by using statistical methods such as percentage analysis, mean scores, and correlation analysis.

The results show that the average financial literacy score of the respondents was 3.12 on a five-point scale, which is a moderate level of financial literacy. While 78% of the respondents showed familiarity with basic savings concepts, only 32% were familiar with insurance products, and 21% had used government financial services. A positive correlation (r = 0.62) was found between financial literacy and business performance, which indicates that higher financial literacy is associated with better income levels and financial decision-making. Education and business experience were identified as significant factors in determining the levels of financial literacy.