Effect of financial literacy on investment decision of women enterpreneurs in Kathmandu Metropolitan

Abstract

This study has investigated the effect of financial literacy on the investment decision of women entrepreneurs in Kathmandu Metropolitan. The main objective is to examine how different dimensions of financial literacy influence investment decisions, with specific aims to assess the current situation, examine relationships and analyze the individual impact of these dimensions. A descriptive, correlational and causal-comparative research design has been adopted. The target population has included women entrepreneurs from sectors such as retail, agriculture, manufacturing, home-based, and online businesses. Based on Cochran’s (1977) formula, the required sample size was 384, but 462 valid responses have been collected using convenience sampling. Primary data have been gathered through structured questionnaires administered both online and in person. The study has considered FB, FA, FS, KIP and SN as independent variables with ID as the dependent variable. Data analysis has involved reliability testing, demographic profiling, descriptive statistics and inferential statistics including correlation and regression analysis. Cronbach’s alpha values ranging from 0.653 to 0.760 have confirmed acceptable reliability. Demographic results have shown most respondents are aged 25–35, have completed +2 or bachelor’s education, possess 4–6 years of entrepreneurial experience, and earn Rs. 25,000–50,000 monthly. Descriptive statistics have indicated strong financial attitudes and behaviors, with relatively lower levels of skill and product knowledge. Correlation analysis has revealed strong positive and significant relationships between all independent variables with investment decision. Regression results have shown that financial skill, financial attitude and knowledge about investment products significantly and positively influence investment decisions with financial skill being the most impactful; financial behavior and subjective norms have shown positive but insignificant effects. In conclusion, enhancing financial skills, attitudes, and investment knowledge is essential for improving investment decisions among women entrepreneurs. The study has offered implications for targeted financial literacy programs and recommended further research to explore broader contexts and longterm outcomes.

Keywords: Investment Decision, Financial Behavior, Financial Attitude, Financial Skill, Knowledge about Investment Products, Subjective Norms. xi