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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM67586
Volume:
10 |
9 |
Sep 2026
Pages:
1-11
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Faculty of Management studies,Sankalchand Patel University
Smt S.B.patel Institute of Business Management
Faculty of Management studies,Sankalchand Patel University
Smt S.B.patel Institute of Business Management
This research scrutinizes how financial literacy shapes the investment behaviour of small retail entrepreneurs in emerging Indian markets. Drawing on survey data from 150 shopkeepers and retail business owners, the study uses a descriptive–correlational design and structural equation model applied to assess the connection among financial literacy and investment behaviour. The measurement instrument validate satisfactory internal consistency (Cronbach’s alpha = 0.710). The outcomes shows a positive and significant association among financial literacy and investment behaviour (β = 0.626), with financial literacy explaining 39.2% of the variance in investment behaviour. Entrepreneurs who were better able to compare financial and credit options, maintain business records, and use digital payment systems were more likely to diversify their investments and consider multiple investment opportunities. However, financial literacy showed only weak relationships with annual savings, monthly income, and business experience, indicating that broader financial outcomes are influenced by additional socioeconomic and institutional factors. The study highlights the importance of context-sensitive financial education that combines financial knowledge with practical skills, digital capability, and access to appropriate financial services. These findings offer useful practical applications for official policymaker, financial institutions, and entrepreneurship-support programmes seeking to strengthen responsible investment practices among India’s small retail entrepreneurs.
KEYWORDS
The outcomes specify that financial literacy is positively associated with investment behaviour, particularly diversification and informed decision-making. However, its relationship with broader economic outcomes such as income, savings, and business experience is relatively weak, suggesting that other factors also contribute to financial success. The results also highlight the need to refine measurement items and strengthen model specification. Overall, financial literacy initiatives, supported by education, access to financial services, and a favorable business environment, can help promote better financial and investment outcomes.
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Publication Date
9/30/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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