FROM FINANCIAL KNOWLEDGE TO FINANCIAL ACTION: A SCOPING REVIEW OF FINANCIAL LITERACY AND FINANCIAL DECISION-MAKING AMONG SME OWNER-MANAGERS
DOI:
https://doi.org/10.35631/AIJBES.829109Keywords:
Financial Literacy, Financial Capability, Financial Decision-Making, Applied Financial Competence, SME Owner-Managers, Financial Behaviour, Scoping ReviewAbstract
Financial literacy is increasingly recognised as relevant to the financial management and decision-making of small and medium-sized enterprise (SME) owner-managers; however, the literature remains heterogeneous in how financial literacy and related constructs are conceptualised, measured, and connected with specific financial decisions. This scoping review maps how financial literacy is conceptualised, measured, and linked to financial decision-making among SME owner-managers. Guided by the Population–Concept–Context (PCC) framework, a systematic search of the Scopus database was conducted on 14 August 2026. The search identified 106 records, which were screened using predefined eligibility criteria, followed by structured data charting, descriptive mapping, and thematic synthesis. The mapped evidence indicates that financial literacy is the dominant but conceptually heterogeneous construct, variously associated with financial knowledge, attitudes, skills, behaviour, and financial capability. Financial decision-making is similarly multidimensional, encompassing investment decisions, financial planning and control broader business financial decisions, and emerging sustainability-related financial practices. A central pattern across the evidence is the distinction between possessing financial knowledge and applying financial understanding through behaviour, planning, control, and other financial-management activities. Financial behaviour occupies varying conceptual roles across studies, while financial capability and digital financial literacy represent emerging extensions of conventional financial literacy perspectives. The evidence base is predominantly quantitative and survey-based, with comparatively limited qualitative research and geographical concentration in particular Asian and African contexts. Overall, the review highlights applied financial competence as a useful organising perspective for understanding how financial knowledge may be mobilised within specific SME financial decision environments. Future research should strengthen conceptual and measurement clarity, distinguish specific financial decision domains, and employ qualitative, mixed-method, and longitudinal approaches to better explain how SME owner-managers translate financial understanding into financial action.
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