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Financial inclusion and business practices of microbusiness in Colombia by Juan Carlos Urueña-Mejía; Luis H. Gutierrez; Paul Rodríguez-Lesmes is a Economics, Econometrics and Finance article available to read on EtoBox.

What is Financial inclusion and business practices of microbusiness in Colombia about?

Abstract Financial inclusion is known to be relevant for improving the growth perspectives of microbusinesses. This research has three aims. First, to explore how adopting business practices can impact the usage of financial products and services of these firms. Second, to determine if higher levels of microbusinesses’ formalization mediate the impact. Third, to establish if there are differences according to gender and education level. A structural equation model was estimated to test these hypotheses while considering the potential endogeneity of the main variables of interest. The model includes latent variables modeled in the form of confirmatory factor analysis. Estimates are based on self-reported information collected through a survey of 1542 microentrepreneurs in 10 Colombian cities in 2019. The results show that microentrepreneurs who adopt (more) business practices have more financial inclusion. No specific category of business practices drives the results. The effect is larger for men than women and is not present for microentrepreneurs of low education levels. Furthermore, personal initiative, a psychological construct, indirectly relates to being more financially inclu

Who reads Financial inclusion and business practices of microbusiness in Colombia?

Author

Juan Carlos Urueña-Mejía; Luis H. Gutierrez; Paul Rodríguez-Lesmes

Publisher

Springer Science and Business Media LLC

Published

2023

Language

EN

Field

Economics, Econometrics and Finance (Social Sciences)