Impact of Financial Literacy on Small and Medium Enterprises (SMEs) Performance in Kuwait: The Moderating Influence of Financial Access

This study aimed to determine the relationship between financial literacy and the performance of Kuwait’s small and medium enterprises (SMEs) moderated by financial access. A cross-sectional time frame was adopted in this study. Our population comprised current SMEs in Kuwait, from whom a representative group of 155 businesses was drawn. The collected data was analyzed using partial least square structural equation modeling (PLS-SEM), and Smart-pls 4 software was used for calculation purposes. The study’s findings showed that financial literacy possessed a statistically significant and beneficial effect on business performance. The study also discovered that financial access moderates the association between entrepreneurial financial literacy and business performance. Recommendations were made to lawmakers, financial institutions, colleges and universities, and entrepreneurs regarding indicates that might enhance financial literacy and access among entrepreneurs. This is a pioneering study within the context of a culturally dominant society. Therefore, by looking at the moderating effect of financial access on the relationship between financial literacy and performance among SMEs in Kuwait, subsequent studies can be triggered within this domain.