Economic analyses highlight, on the one hand, the difficulties that small businesses face in accessing credit and, on the other hand, the positive impact of entrepreneurs' financial literacy on several aspects of business management. This study integrates these two lines of research by investigating whether higher financial competence among entrepreneurs running micro-enterprises is associated with a greater likelihood of applying for and obtaining a bank loan for their companies.
The financial skills of micro-entrepreneurs significantly increase the likelihood of applying for a loan; this effect can be attributed to a greater reliance on external financial advisors and an increased awareness of public guarantee schemes among more skilled micro-entrepreneurs. Conversely, the analysis does not indicate a significant relationship between entrepreneurs' financial competencies and the probability of securing the requested loans.
