Financial Literacy in the Modern Economy: Bridging the Knowledge Gap for Entrepreneurs and Beyond

Abstract

This chapter underscores the critical role of financial literacy, especially for entrepreneurs, in today's rapidly changing economic landscape. The significance of this subject is evident, yet recent studies from the Organization for Economic Co-operation and Development (OECD) and Standard & Poor's (S&P) reveal an alarming deficiency in financial knowledge, with a vast number of adults, including budding entrepreneurs, unable to understand fundamental financial concepts. This was particularly evident during the COVID-19 Pandemic. This knowledge gap affects not just individual entrepreneurs but can also pose systemic risks, especially with emergent challenges like the introduction of digital assets. Our chapter takes a holistic view, exploring topics from entrepreneurial financial planning to the socio-economic factors influencing financial choices. Highlighting gender disparities in financial literacy, we emphasise the urgent need for a gender-inclusive approach to financial education. This approach ensures both individual entrepreneurial success and collective resilience against economic adversities.