Title: Financial literacy, attitude, and knowledge as the predictors of firm performance of SME owners in Bangladesh

Authors: Saif Hossain; Md. Mizanur Rahman

Addresses: BRAC Business School, BRAC University, Dhaka, Bangladesh; Putra Business School, Level 3, Office Building of the Deputy Vice Chancellor (Research and Innovation), UPM, 43400 Seri Kembangan, Selangor, Malaysia ' BRAC Business School, BRAC University, Dhaka, Bangladesh

Abstract: The fundamental objective of this study is to investigate the mediating effects of financial attitude and knowledge on the relationship between financial literacy and firm performance of SME owners in Bangladesh. Using the convenience sampling technique, we collected the data from a total of 317 owners of SMEs from eight divisions in Bangladesh. The findings revealed that financial literacy, attitude, and knowledge significantly impact firm performance. Besides, financial attitude and knowledge partially mediate the relationship between financial literacy and firm performance. This research has significant implications for SME owners as these findings motivate them to develop their financial literacy, positive attitude, and knowledge that are positively related to better firm performance.

Keywords: financial attitude; financial knowledge; financial literacy; SMEs; firm performance.

DOI: 10.1504/IJESB.2026.153594

International Journal of Entrepreneurship and Small Business, 2026 Vol.58 No.2, pp.257 - 274

Received: 14 Sep 2024
Accepted: 02 Jan 2025
Published online: 18 May 2026 *

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