Financial Literacy of Women Entrepreneurs: A Study on Some Select Women Entrepreneurs of Dibrugarh District

Abstract

Entrepreneurship is considered as a boon in the present situation. The government is focusing more on startup and creation of entrepreneurs which plays a major role in the economic growth. In India where gender equality is a major issue, it has been observed that women are taking up entrepreneurial activities. Especially, the easy financing by the banks and other organizations have given a lot of scope and opportunities to the women to take up entrepreneurial activities. Moreover taking up entrepreneurial activities leads to economic independence for the women. Talking about economic independence, it is not only about earning money but also the proper use of financial resources by taking proper financial decisions. It is very important that they manage their financial resources for the benefit. The success of their entrepreneurial activities largely depends on the ability to use their financial resources. With lot of financial services and products are available in the market it is very important that people take informed decisions regarding the use of financial resources. This brings in light the necessity of “financial literacyâ€. Financial literacy refers to the ability to make informed judgment and to take effective decisions regarding use and management of financial resources. It leads to financial well-being and welfare of individuals. Earlier literatures have revealed that women are more financially illiterate than men. Entrepreneurship will definitely lead to women empowerment but to make it effective one should be financially literate enough so that they can use their financial resources effectively. Therefore it is important to study the financial literacy level of the women entrepreneur and their investment behaviors. Thus, this paper attempts to study financial literacy level of the women entrepreneur and the impact of financial literacy on the investment behavior of women.