Empowering micro-entrepreneurs: understanding the determinants of personal financial planning decisions

S. Usha Lakshmi and Anuradha R

International Journal of Process Management and Benchmarking, 2026, vol. 23, issue 2, 139-162

Abstract: Micro-entrepreneurs are vital for economic growth in developing nations, yet their personal financial planning (PFP) decisions are often hindered by limited financial literacy and resources. This study explores how savings behaviour (SB), future orientation (FO), and financial nudging (FN) impact PFP decisions among micro-entrepreneurs. Analysis of survey data reveals a strong link between savings behaviour and effective financial planning. Future orientation mediates this relationship, indicating that those with a long-term perspective better integrate their savings into financial planning. Additionally, financial nudging moderates this effect, enhancing the impact of savings behaviour when nudges like reminders and incentives are present. These findings emphasise the need for targeted financial interventions and educational programs to boost micro-entrepreneurs' financial decision-making capabilities. The research provides valuable understandings for policymakers and financial institutions, offering practical strategies to support and empower micro-entrepreneurs and foster sustainable economic growth.

Keywords: personal financial planning decisions; micro-entrepreneurs; savings behaviour; SB; future orientation; FO; financial nudging; FN. (search for similar items in EconPapers)
Date: 2026
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