Financial Literacy in Micro- Small-Medium-sized Enterprises

Balázsi, Gabriella (2025) Financial Literacy in Micro- Small-Medium-sized Enterprises. MAGYAR MINŐSÉG, 34 (7). pp. 67-90. ISSN 1416-9576

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Abstract

Relevance: Financial literacy significantly impacts MSME performance and competitiveness. Purpose: To assess financial literacy levels among Hungarian MSMEs and self-employed individuals, integrating financial and entrepreneurial competencies into the analysis. Methods: This study utilised a custom-designed questionnaire created specifically for its purposes, and was administered to small business owners. Based on the OECD’s three-dimensional model such as financial knowledge, financial behaviour, financial attitude, nevertheless this work proposes an expanded construct, split the financial knowledge dimension into two separate sub-dimensions, theoretical and operational ones. Financial behaviour and financial attitud dimensions are align with entrepreneurial competencies approved by the European Comission. Quantitative analysis included descriptive statistics, Welch t-tests. Results: Financial knowledge scores varied significantly by business size and age, with larger and more established firms exhibiting higher literacy. Behavioural and attitudinal dimensions revealed patterns of “financially savvy” decision-making among experienced entrepreneurs, while smaller and younger firms displayed gaps in financial planning and risk management. Conclusion: The study confirms that MSME financial literacy in Hungary is unevenly distributed, with entrepreneurial experience and firm maturity linked to stronger, higher-level competencies. The proposed integrated construct offers a more precise tool for assessing business-oriented financial literacy, informing targeted education and support initiatives.

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