Empowering women through financial literacy and business management skill: Empirical evidence from Indonesia

This study examines the impact of financial literacy, business management skills, and access to capital on the sustainability of women entrepreneurs' businesses. Using a quantitative approach, the findings reveal that financial literacy and business management skills significantly enhance business sustainability, equipping women entrepreneurs with essential decision-making and managerial capabilities. Access to capital also plays a crucial role in sustaining businesses by providing financial resources for growth and risk management. The moderating effects of access to capital present a nuanced dynamic. While access to capital strengthens the positive relationship between business management skills and business sustainability, it unexpectedly weakens the relationship between financial literacy and sustainability. This indicates that although financial resources are necessary, excessive reliance on external funding without strong financial management can hinder business success. These findings align with Resource-Based View, emphasizing the significance of both financial and managerial competencies. The study provides theoretical contributions by refining the understanding of financial literacy's role in business sustainability and highlighting the risks of financial mismanagement. Practically, it emphasizes the need for integrated policies that enhance financial education and managerial skills while ensuring responsible access to capital. Governments, financial institutions, and entrepreneurship programs in Indonesia should adopt a holistic approach by combining financial training with structured capital access. Despite its contributions, this study is limited by its cross-sectional design and geographical scope. Future research should explore longitudinal and qualitative perspectives to gain deeper insights. Overall, this study offers valuable recommendations for fostering sustainable women entrepreneurship, particularly in developing economies.