Javed Hussain|Samuel Salia|Amin H. Karim
Is knowledge that powerful? Financial literacy and access to finance
Birmingham City University|University of Wolverhampton|University of Ghana
purpose purpose paper examine relationship financial literacy access finance growth among small mediumsized enterprises smes within midlands region uk assesses whether financial literacy assists smes overcome information asymmetry mitigates need collateral optimizes capital structure improves access finance designmethodologyapproach gain deeper insight complex relationship financial literacy access finance growth qualitative research carried among smes operated five years longer using purposive sampling technique 37 firms selected based size location characteristics mainly city birmingham joining conurbations openended combination dichotomous questions used survey interviews recorded transcribed thematically analyzed findings financial literacy interconnecting resource mitigates information asymmetry collateral deficit evaluating loan applications therefore financial literacy part school curriculum analysis suggests enhanced financial literacy reduces monitoring cost serves optimize firms capital structure positively impacts smes growth financial management knowledge recognized core resource aids effective decision making owners smes research limitationsimplications limitation research small sample limits generalization findings could enhanced larger sample conducting comparative studies regions economies smes growth seen strategic policy stimulate enterprise finance gap tends constrain objective uk governments effort improve access finance mitigate excessive collateral demands lenders proved elusive empirical research provides evidence financial literacy enhances access finance turn promotes growth potentials practical implications results study advocate provision financial literacy schools target support smes acquire financial management skills order mitigate information asymmetry lenders borrowers social implications findings suggest financial literacy mediates access finance enables enterprises use optimal financial structure mitigate business failure creates employment reduces public sector support social benefits originalityvalue study novel examines financial literacy implications access finance firm growth uk study effort highlight role financial information mitigating barriers finance smes