Determinants of Sustainable Entrepreneurship in Morocco: The Role of Entrepreneurial Orientation, Financial Literacy, and Inclusion

Abstract

This paper investigates the relationship between sustainable entrepreneurship and financial inclusion, financial literacy, and entrepreneurial orientation. As sustainable entrepreneurship gains academic and practical interest, understanding factors that enable entrepreneurs to operate sustainably is fundamental. The manuscript uses an electronic questionnaire distributed to key economic stakeholders and performs partial least squares structural equation modeling on data from 169 respondents. The results show that entrepreneurial orientation has a positive and significant impact on sustainable entrepreneurship, with a beta coefficient of 0.878 and a probability value of less than 0.01. Financial literacy significantly influences sustainable entrepreneurship, with a beta coefficient of 0.389 and a probability value of less than 0.001, and it partially mediates its relationship with financial inclusion, showing a beta coefficient of 0.3 and a probability value of 0.013. Financial literacy and financial inclusion are positively correlated, with a beta coefficient of 0.771 and a probability value of less than 0.05. However, the impact of financial inclusion on sustainable entrepreneurship is negative and insignificant, with a beta coefficient of −0.392, and there is no evidence that entrepreneurial orientation moderates the link between financial literacy and sustainable entrepreneurship. The findings provide valuable insights for Moroccan policymakers to promote entrepreneurship, suggesting that financial literacy plays a crucial role in enhancing sustainable business practices. The study emphasizes the need for Morocco to adapt to current programs and create a supportive financial environment for entrepreneurs. Due to a lack of comprehensive datasets, the study’s conclusions are limited and might not accurately reflect the entire landscape.

1. Introduction

Sustainable entrepreneurship and financial inclusion are crucial elements in the development of countries, and are globally recognized and supported by governments. Economists, entrepreneurs, and policymakers share the perspective of emphasizing corporate social responsibility (CSR) and sustainable development. It indicates that businesses must integrate societal and environmental impacts into their long-term strategies to ensure their sustainability and success (Ahmad and Mokhchy 2023). The increasing concerns about environmental issues due to the rapid pace of global economic progress have resulted in a greater emphasis on global-scale discussions related to economic growth and sustainable development (Blanken et al. 2013). Sustainable entrepreneurship emphasizes a balanced approach, giving equal weight to the economic, social, and environmental components of sustainability, in contrast to traditional entrepreneurship, which primarily centers on economic progress. The essence of sustainable entrepreneurship is ensuring that business activities are economically viable, socially inclusive, and environmentally conscious, striking a harmonious balance to achieve sustainability (Belz and Binder 2015). Sustainable entrepreneurship serves as a bridge between sustainable development and entrepreneurial initiatives. It involves entrepreneurs creating viable market solutions and functioning as agents of change, seizing opportunities for sustainable development while also ensuring profitability without detrimental effects on the environment and society (Farny and Binder 2021). Individuals who significantly contribute to sustainable development through their core operations are often named sustainable entrepreneurs (Schaltegger and Wagner 2011). Creating advanced goods, services, and organizational methods that aim to reduce social and environmental harms while enhancing overall quality of life is at the heart of sustainable entrepreneurship. The primary objective is not to achieve profitability by meeting needs, while simultaneously contributing positively to both society and the environment (Schaltegger and Wagner 2011).

Financial inclusion is a multi-faceted concept closely tied to sustainability, ensuring that both people and businesses can afford and access financial goods and services, enabling them to satisfy their requirements and improve their quality of life in a sustainable manner (AFI 2023). The World Bank Group plays a crucial function in advancing financial inclusion worldwide through its financial sector expertise, country engagement, and dialogue with standard-setting bodies and the G20 (World Bank 2022).

Financial literacy is another key concept that helps to boost economic growth. Khan et al. (2022) and Lontchi et al. (2022) believe that gaps in financial literacy hamper both economic growth and sustainable development. Financial literacy reflects the extent to which individuals are aware of financial tools and knowledge available to improve their personal or professional financial management. It also fosters the cultivation of sustainable entrepreneurship (Burchi et al. 2021).

Fostering entrepreneurial sustainability can be promoted by entrepreneurial orientation. The notion has many dimensions that might vary depending on the application (Callaghan and Venter 2011; Lumpkin and Dess 1996). Entrepreneurial orientation is, in turn, a key element in nurturing sustainability among entrepreneurs (Lumpkin and Dess 1996; Li et al. 2009).

Morocco, like many countries, receives significant support from universal institutions such as the World Bank, the United Nations, and the Alliance for Financial Inclusion to enhance its efforts in financial inclusion (Bank Al-Maghrib 2023). Since 2007, Morocco has been working to develop its financial sector and position itself as a regional financial hub. The country has made consistent efforts and implemented reforms to create an inclusive financial system, with the National Financial Inclusion Strategy (NFIS) being a key program in this journey. Launched in 2018 by Bank Al-Maghrib of Morocco and the Ministry of Economy and Finance, the National Financial Inclusion Strategy (NFIS) seeks to raise the country’s financial inclusion percentage to 50% in 2023 and 75% in 2030 (UNSGA 2023; Bank Al-Maghrib 2016, Annual Report). The commitment of Morocco to improving its business environment has been evident through its significant rise in the Ease of Doing Business Index, climbing from 177th place in 2006 to 53rd place in 2020 (Lahlou et al. 2020). This improvement has led to positive outcomes, with the national economy experiencing a growth rate of 7.9% in 2021, the highest since 1997, surpassing both the global economic rebound of 6.1% and the growth rate of 5.8% in the Middle East and North Africa (MENA) region (Bank Al-Maghrib 2021, 2016, Annual Report).

The goal of this study is to determine how the direct factors of financial inclusion, financial literacy, and entrepreneurial orientation relate to sustainable entrepreneurship. Additionally, the study explores how financial literacy mediates the link between sustainable entrepreneurship and its direct factors, as well as how entrepreneurial orientation moderates these interactions within the same framework. These factors were chosen based on existing empirical research that illustrates their significance in various contexts and countries.

The research aims to investigate the complex dynamics between the selected factors and the impacts they may have on nurturing sustainable entrepreneurship by answering the following research questions:

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To what extent does financial inclusivity influence the sustainability of Moroccan entrepreneurs?

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What role does financial inclusion serve in facilitating access to financial resources and/or services?

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How does financial literacy impact entrepreneurs to sustain their entrepreneurship?

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In what ways does financial literacy affect entrepreneurial performance?

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How does financial literacy mediate the nexus between financial inclusion and sustainable entrepreneurship?

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To what degree does being entrepreneurially oriented impact entrepreneurs’ sustainability?

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How does entrepreneurial orientation interact with financial inclusion to influence sustainable entrepreneurship?

Scholars addressing this topic mainly discuss entrepreneurial intentions; however, the study’s distinctive perspective is that it investigates the effects of the preselected factors on existing Moroccan entrepreneurs. The manuscript uses an electronic questionnaire distributed to key economic stakeholders, enabling the collection of practical and precise data.

The rest of the paper is managed as follows: Section 2 presents a thorough review of the literature and formulates the research hypotheses. Section 3 designates the data set-up and methodology, detailing the various measures evaluated in this study. Section 4 emphasizes and debates the results, examining the factors influencing sustainable entrepreneurship in Morocco through structural equation modeling under partial least squares. Lastly, the conclusion summarizes the key findings, outlines research limitations, and suggests directions for forthcoming research.

2. Framework and Hypotheses

A review of the literature reveals that discussions predominantly center on sustainability and financial inclusion, with a concentration on integrating financial literacy and entrepreneurship. Lontchi et al. (2022) note that research on financial literacy and sustainable development presents mixed findings regarding their correlation. Scholars frequently investigate these issues within broader contexts. Additionally, some researchers associate sustainable development with macroeconomic growth, while others focus on microeconomic considerations (Lontchi et al. 2022; Soyemi et al. 2020; Sharma 2016) through the implementation of policies aimed at enhancing financial access, stimulating economic growth, and achieving sustainability. This study specifically addresses the microeconomic dimension of the topic at hand.

2.1. Conceptual Framework

According to research findings (Muñoz et al. 2018), sustainable entrepreneurship is an increasingly relevant subject for both practical application and academic study. Despite the expanding body of literature on the topic, researchers have yet to reach a consensus on a universal definition (Halberstadt et al. 2019). The relationship between sustainable development and entrepreneurship has been described with the emergence of different terms from separate fields that include environmental entrepreneurship and social entrepreneurship (Schaltegger and Wagner 2011). The process of creating economic, social, and environmental value while prioritizing the welfare of future generations designates sustainable entrepreneurship (Hockerts and Wüstenhagen 2010). Many scholars argue that it involves establishing and achieving comprehensive economic, social, and ecological goals that are sustainable over the long term (Gibbs 2006; Schlange 2006; Tilley and Young 2006).

With a focus on the economic, social, and environmental dimensions, the aim of this study is to investigate the determinants of sustainable entrepreneurship as identified in the literature. It also explores how financial inclusion influences sustainable entrepreneurship. Previous research underscores the importance of moderators and mediators in clarifying the relationships associated with sustainable entrepreneurship (Lontchi et al. 2022; Pandey et al. 2022). Consequently, in order to enhance the explanatory power of the conceptual model presented in Figure 1, this study suggests a systematic approach to understanding the complex dynamics between financial inclusion, financial literacy and entrepreneurial orientation in fostering sustainable entrepreneurship. Additionally, it investigates the mediating effect and the moderating role of financial literacy and entrepreneurial orientation, respectively, to offer a comprehensive perspective in translating access into sustainable entrepreneurial practices and stimulating entrepreneurial viability.

2.2. Hypotheses

2.2.1. Financial Inclusion and Sustainable Entrepreneurship

Financial inclusion is acknowledged as a strategy to integrate all fragments of society into the financial system by targeting low-income and marginalized groups confronting financial difficulties and providing them with appropriate and viable financial facilities (Jiang et al. 2019). It also enhances access to credit for individuals (Sharma et al. 2023), which is vital for job creation, poverty reduction, and economic stability and growth, particularly in rural areas (Goel and Madan 2019). Additionally, disadvantaged groups like underprivileged farmers, small businesses, and other vulnerable sectors are allowed to access to financial services due to financial inclusion (Ajide 2020), ensuring equitable financial opportunities for all participants in the economy (Jiang et al. 2019). Nowadays, governments use financial inclusion as a regulatory tool to achieve a variety of macroeconomic objectives (Okowa et al. 2022; Sakanko et al. 2019).

As highlighted by Schumpeter (1934), financing is essential for conducting business operations, with funding playing a crucial role in directing effort towards entrepreneurial pursuits (Goel and Madan 2019; Claessens and Perotti 2007). Exclusion from financial services can impede business expansion, limiting growth prospects for enterprises and ultimately hindering national economic development by contributing to elevated levels of joblessness and poverty (Ajide 2020). The potential connection between entrepreneurship and financial inclusion has shown growing attentiveness among scholars (Wang and Tan 2017; Goel and Madan 2019; Jiang et al. 2019).

However, research considering the link between financial inclusion and sustainable entrepreneurship, especially within the Moroccan context, remains limited. Accordingly, the following hypothesis can be proposed:

H1. 

Financial inclusion has a positive impact on sustainable entrepreneurship.

2.2.2. Financial Literacy and Sustainable Entrepreneurship

Financial literacy is considered essential by scholars such as Alshebami and Aldhyani (2022), Khan et al. (2022), Ye and Kulathunga (2019), and others in today’s economy. They view it as crucial for individuals, especially young people, to achieve well-being. A lack of financial literacy could impede economic growth and sustainable development as it limits the full utilization of financial services (Khan et al. 2022; Lontchi et al. 2022). The definition of financial literacy varies among researchers. According to the OECD (2019) report, it includes knowledge, the comprehension of financial notions and dangers, skills, motivations, and the ability to make sound financial decisions. It is essential to enhance financial well-being, encourage economic participation, and ensure financial stability (Lontchi et al. 2022). It is a critical tool for fostering sustainable entrepreneurship (Burchi et al. 2021). Scholars highlight the importance of being financially literate in advancing sustainable entrepreneurship, recognizing it as a key factor for business success and a significant indicator according to organizations like the OECD (2015, 2017, 2018) reports. Research reveals both direct and indirect relationships between financial literacy and sustainable entrepreneurship (Lontchi et al. 2022; Burchi et al. 2021; Ye and Kulathunga 2019).

Burchi et al. (2021) examined the impact that financial literacy has on sustainable entrepreneurship in Central European countries, noting that access to funding incentivizes entrepreneurship. They highlighted financial literacy as a central element in fostering sustainable entrepreneurship, with their findings showing that the relationship between financial literacy and entrepreneurial activity is positively and statistically significant. Chepngetich (2016) studied the impact of financial literacy on the performance of small and medium enterprises (SMEs) in Kenya, finding that both borrowing financial literacy and budgeting financial literacy significantly affected SME performance. Accordingly, the following hypothesis can be proposed:

H2. 

Financial literacy positively and significantly impacts sustainable entrepreneurship.

2.2.3. Financial Literacy and Financial Inclusion

Nyarko et al. (2023) explored the relationship between financial literacy, financial inclusion, and inclusive growth in Africa, pointing out a research gap in the correlation between financial literacy and financial inclusion. His study revealed that financial literacy positively impacts inclusive growth, with financial institutions mediating the relationship between financial literacy and financial inclusion determinants such as account ownership, savings, and bank credit. Numerous studies, including those by Lontchi et al. (2022), have consistently shown a positive relationship between financial literacy and financial inclusion.

Grohmann et al. (2018) conducted cross-country study that demonstrated a strong link between financial literacy and financial inclusion, while Sangeetha et al. (2017) found that financial literacy significantly promotes financial inclusion in India. Accordingly, the following hypothesis can be proposed:

H3. 

Financial literacy and financial inclusion have a positive and significant relationship.

2.2.4. Mediating Effect of Financial Literacy on Financial Inclusion and Sustainable Entrepreneurship

Based on the research of Lontchi et al. (2022), Burchi et al. (2021), Ye and Kulathunga (2019), and others, financial literacy is considered a critical factor in sustainable entrepreneurship, influencing it both directly and indirectly. This study also investigates the indirect role of financial literacy as a mediator in sustainable entrepreneurship.

Ye and Kulathunga (2019) found that in Sri Lanka, financial literacy positively affects the sustainability, access to finance, and financial risk attitude of SMEs, with access to finance and financial risk attitude partially mediating the relationship between financial literacy and sustainability. Similarly, Lontchi et al. (2022) concluded that the relationship between financial inclusion and sustainable development is mediated by financial literacy. Accordingly, the following hypothesis can be proposed:

H4. 

Financial literacy positively and significantly mediates the relationship between financial inclusion and sustainable entrepreneurship.

2.2.5. Entrepreneurial Orientation and Sustainable Entrepreneurship

Entrepreneurial orientation encompasses a range of concepts that vary depending on their application and context. It views entrepreneurship as entrepreneurial behavior (Callaghan and Venter 2011) and stresses how a business runs rather than what it performs (Lumpkin and Dess 1996). The core dimensions of entrepreneurial orientation include innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy (Lumpkin and Dess 1996). These dimensions allow for distinct changes within each aspect of entrepreneurial orientation (Lumpkin and Dess 1996).

Entrepreneurial orientation has become a prominent research area within the field of entrepreneurship, as evidenced by various studies (Wales et al. 2020; Callaghan and Venter 2011; Kraus et al. 2012; Islam et al. 2011). This concept emphasizes the prominence of cultivating an entrepreneurial culture to enhance sustainability and stimulate the progress of small and medium-sized enterprises. According to Lumpkin and Dess (1996) and Li et al. (2009), dimensions such as innovation, risk-taking, proactiveness, competitiveness, and autonomy play significant roles in gaining a competitive advantage and improving overall performance. Li et al. (2009) conducted a study in the context and further revealed that entrepreneurial orientation positively correlates with firm performance, with knowledge creation serving as a mediating factor in this relationship. Accordingly, the following hypothesis can be proposed:

H5. 

Entrepreneurial orientation positively and significantly impacts sustainable entrepreneurship.

2.2.6. Moderating Role of Entrepreneurial Orientation on Financial Inclusion and Sustainable Entrepreneurship

Ge and Li (2023) investigated the link between social networks and the dual innovation business model among family farms in China from an entrepreneurial orientation perspective. Their findings indicate that entrepreneurial orientation positively influences the relationship between social networks and the development of new business models. Entrepreneurial orientation is frequently studied as a mediator, as shown in Triyono et al. (2023), who explored its mediating effect on the relationship between social capital and psychological capital in shaping entrepreneurial intentions among vocational education students. Li et al. (2008) examined the values of innovation and proactivity and found a positive correlation with firm performance, noting that these dimensions also positively moderate the relationship between market orientation and performance. Conversely, Richard et al. (2004) found mixed results regarding the moderating role of entrepreneurial orientation dimensions in the relationship between cultural diversity and a company’s performance, with risk-taking exhibiting a negative moderating effect and innovativeness showing a positive moderation effect. Accordingly, the following hypothesis can be proposed:

H6. 

Entrepreneurial orientation positively and significantly moderates the relationship between financial inclusion and sustainable entrepreneurship.

3. Methodology

It is essential to outline the methodology used in the study assessing sustainable entrepreneurship among Moroccan entrepreneurs. A quantitative research approach is adopted in this study to consider the relationships between sustainable entrepreneurship (dependent variable) and financial inclusion, financial literacy, and entrepreneurial orientation (independent variables). In addition to shaping relationships between multivariate factors, the study examines how financial literacy mediates, and entrepreneurial orientation moderates, these relationships. The methodology includes a questionnaire, data collection and data treatment.

3.1. Questionnaire

An electronic and structured questionnaire written in English and translated to and submitted in both French and Arabic was used to ensure inclusiveness and effective primary data collection (Appendix A). A combination of quantitative questions was used to guide the target audience, including demographic, dichotomous, multiple choice and rating scale questions. The decision to use a questionnaire as the primary research tool to collect data was mostly due to the multiple advantages it provides in terms of respondents’ anonymity, accessibility to respondents, accuracy of data and flexibility in reply.

3.2. Data Collection

Data collection was based on responses from a sample of 200 entrepreneurs whose contact information was sourced from CRI-Fez. Due to the lack of comprehensive datasets, assembling a population frame posed challenges. Consequently, these individuals were kindly asked to contribute to the study via email, and asked to complete an online questionnaire. Out of the 200 invitations, 169 responses were deemed valid for the study’s objectives. The research utilized a 5-point Likert scale for data collection and analysis. Survey questions were adapted from existing literature and previous studies (Lontchi et al. 2022; Alshebami and Aldhyani 2022). We relied on previous studies to supply a consistent foundation for the questions, to construct clear and accessible questions, and to enable participants to understand, since we recognize that many of them do not have a well-developed conception of the constructs. Before distribution, the questionnaire was thoroughly assessed by a panel of five researchers. It was available to respond to for nearly three months.

3.3. Data Treatment

3.3.1. Parameters and Items

The study focuses on four distinct constructs that form the basis for data analysis and interpretation (

Table 1. Conceptualization of constructs.

Constructs		Parameters	Items
Financial Literacy		FIN_LIT_	[FL1] [FL2] [FL3] [FL4] [FL5]
Sustainable Entrepreneurship		SUS_ENTREP_	[SP1] [SP2] [SP3] [SP4] [SP5]
Entrepreneurial Orientation	Entrepreneurial Competency	ENTREP_ORIENT_	[EC2] [EC3] [EC4] [EC5]
	Entrepreneurial Behavior		[EB5a] [EB5b] [EB5c]
Financial Inclusion		FIN_INCLUS_	[FINInclu1] [FINInclu2]

). Sustainable entrepreneurship (SUS_ENTREP_) and financial literacy (FIN_LIT_), each comprising five items, highlight the importance of these dimensions within the study’s context. In addition, the succinct yet impactful representation of financial inclusion (FIN_INCLUS_) through two items highlights its crucial role in the research framework.

Exploring further, the composite construct of entrepreneurial orientation (ENTREP_ORIENT_) encompasses both entrepreneurial behavior (ENTREP_BEHAVIOR_) and entrepreneurial competency (ENTREP_COMPETENCY_), with three and four items chosen for each, respectively. This comprehensive approach offers a holistic view of the entrepreneurial mindset and skills under examination, enriching the research with valuable insights.

3.3.2. Approach and Assessments

The gathered data were coded and analyzed using SPSS-AMOS software, a prominent tool for Structural Equation Modeling (SEM) based on the Partial Least Squares (PLS) method. PLS integrates the advantages of principal component analysis (PCA), correlation analysis, and linear regression to predict dependent variables from a range of independent variables. SEM, on the other hand, is a sophisticated method that enables the simultaneous analysis of relationships between latent and observed variables in both observational and experimental research.

The decision to use the PLS-SEM approach was based on its ability to manage complex relationships among variables. This method combines factor analysis, multiple regression, and path modeling to effectively test the proposed hypotheses. The PLS-SEM framework includes two sub-models—the measurement model, which examines the relationship between observed data and latent variables, and the structural model, which explores the links between latent variables.

For the measurement model’s assessment, several criteria were used. Indicator loadings measure how well each observed variable reflects the underlying latent construct, with values above 0.708 generally considered strong, indicating that the item reflects more than 50% of the intended factor. Loadings between 0.40 and 0.708 are acceptable, though improvements may be necessary to enhance the model’s reliability or validity. Cronbach’s Alpha (CA) measures the internal consistency of a set of items, with a threshold of 0.60 often used in exploratory research, although a value of 0.70 or higher is preferred for more robust assessments. Average Variance Extracted (AVE) assesses the extent to which a construct explains the variance of its indicators, with a desirable threshold being greater than 0.50.

For the structural model assessment, the Kaiser–Meyer–Olkin (KMO) measure evaluates the sampling adequacy by analyzing the correlations between variables, with values between 0.8 and 1 specifying that the sample is satisfactory for further analysis. Composite Reliability (CR) provides a measure of internal consistency that is less biased than Cronbach’s Alpha. Bartlett’s Test of Sphericity assesses whether the sample’s variances are equal, validating the suitability of the data for factor analysis. Discriminant Validity examines whether a construct is separate and unique from other constructs, ensuring the accuracy of the model’s differentiation between variables.

4. Results and Analysis

A preliminary analysis was performed using SPSS to appraise the relevance of the data within the model. This was followed by model fitting and hypothesis testing using AMOS. The initial step involved verifying the measurement model to ensure the reliability and consistency of the constructs, as recommended by Singh and Sharma (2016). Following this, a structural model was developed to assess the hypotheses. Given the study’s focus on mediating effects and moderating roles of specific variables, additional testing methods, including bootstrapping, were used to gain comprehensive insights.

4.1. Preliminary Conditions

The data presented in Figure 2 illustrate the demographic characteristics of the 169 respondents. The majority of participants were male, constituting 65.1% of the sample. In terms of education, a significant portion of the respondents held a master’s degree or higher (47.3%), while 40.8% had completed a bachelor’s degree. Although most participants were relatively young, with over 80% under the age of 40, the age distribution was as follows: 47.9% were between 21 and 30 years old, and 33.1% were between 31 and 40 years old.

Based on the findings presented in

Table 2. Factor analysis: Kaiser–Meyer–Olkin and Bartlett tests.

Kaiser–Meyer–Olkin Adequacy	Measure of Sampling	0.833
Bartlett Test of Sphericity	Chi-Square (χ2)	1636
	df	171
	σ	0

, the Kaiser–Meyer–Olkin (KMO) measure of sampling adequacy yielded a value of 0.833, and Bartlett’s Test of Sphericity showed a significance level of 0. These results are statistically significant, indicating that the data are appropriate for analysis. In line with prior studies by Shrestha (2021), Pallant (2020), and Napitupulu et al. (2017), KMO values ranging from 0.8 to 1.0, combined with a significance level below 0.05, confirm that the sampling is adequate for further analysis.

4.2. Measurement Model Assessment

The model employed in the study exhibits reflective characteristics and utilizes structural equation modeling (SEM), a robust statistical technique that permits the examination of complicated relationships between latent variables. A crucial aspect of SEM is the indicator loadings, which gauge how effectively each observed variable reflects the underlying latent construct. According to Hair et al. (2019), indicator loadings above 0.708 are generally considered strong, indicating that the construct accounts for more than 50% of the variance in the indicator. Loadings between 0.40 and 0.708 are considered acceptable, though they should be removed only if doing so enhances the overall reliability or validity of the model.

In the study, an item related to financial literacy exhibited a loading of 0.677 (

Table 3. Assessment of reliability and convergent validity.

Constructs		Items	Loadings	CA	CR	AVE
Financial Literacy		[FL1}	0.677	0.889	0.900	0.643
		[FL2]	0.786
		[FL3]	0.837
		[FL4]	0.847
		[FL5]	0.849
Sustainable Entrepreneurship		[SP1]	0.712	0.874	0.890	0.619
		[SP2]	0.765
		[SP3]	0.771
		[SP4]	0.828
		[SP5]	0.850
Entrepreneurial Orientation	Entrepreneurial Competency	[EC2]	0.796	0.777	0.930	0.656
		[EC3]	0.848
		[EC4]	0.869
		[EC5]	0.776
	Entrepreneurial Behavior	[EB5a]	0.713
		[EB5b]	0.825
		[EB5c]	0.833
Financial Inclusion		[FINInclu1]	0.824	0.545	0.803	0.671
		[FINInclu2]	0.814

), indicating a fairly strong relationship with the latent construct. On the other hand, an indicator labeled [FINInclu3], concerning financial inclusion, showed an insignificant loading, and was therefore removed from the analysis to enhance the model’s validity (Hair et al. 2019, 2021).

To assess internal consistency reliability, two common measures—Cronbach’s alpha (CA) and composite reliability (CR)—were computed. Both indices surpassed the recommended threshold of 0.60 commonly utilized in exploratory research (Hair et al. 2019, 2021), indicating good internal consistency among the indicators. Notably, while most constructs exhibited high CA and CR values above 0.78, the financial inclusion construct had a slightly lower CA value of 0.545, implying a potential need for further refinement in measuring this particular construct (Table 3).

In assessing convergent validity, the Average Variance Extracted (AVE) was calculated to determine the degree to which items within each construct were related. All constructs in the study showed AVE values larger than 0.50 (see Table 3), indicating strong convergent validity (Hair et al. 2013, 2018, 2019). This result confirms that the items effectively measure their intended constructs, thereby providing confidence in the validity of the measurement model used in the study.

Discriminant validity is evaluated by determining how well a construct is differentiated from other constructs (Lontchi et al. 2022). To assess this, the study employed the Fornell–Larcker criterion alongside Pearson correlation analysis and the Heterotrait–Monotrait (HTMT) ratio of correlations.

As detailed in

Table 4. Discriminant validity: Fornell–Larcker condition using Pearson correlation ($\sqrt{AVE}>correlation$).

	ENTREP_ORIENT_	FIN_LIT_	FIN_INCLUS_	SUS_ENTREP_
ENTREP_ORIENT_	0.810	0.347 2	0.144	0.339 2
FIN_LIT_	0.347 2	0.802	0.176 1	0.362 2
FIN_INCLUS_	0.144	0.176 1	0.819	0.019
SUS_ENTREP_	0.339 2	0.362 2	0.362	0.787

¹ Correlation is significant at the 0.01 level (2-tailed). ² Correlation is significant at the 0.05 level (2-tailed).

, the Fornell–Larcker test reveals that all square root values of the Average Variance Extracted (AVE) are greater than the correlations between constructs. ENTREP_ORIENT_ correlation with the set of constructs FIN_LIT_, FIN_INCLUS_, and SUS_ENTREP_ shows a coefficient of 0.810. FIN_LIT_ correlation with the set of constructs ENTREP_ORIENT_, FIN_INCLUS_ and SUS_ENTREP_ yields a coefficient of 0.802. FIN_INCLUS_ correlation with the set of constructs ENTREP_ORIENT_, FIN_LIT_, and SUS_ENTREP_ has a coefficient of 0.819. The correlation coefficient between SUS_ENTREP_ and the set of constructs ENTREP_ORIENT_, FIN_LIT_ and FIN_INCLUS_ is 0.787. All these coefficients outperform the separate correlations (0.810 > 0.347, 0.144 and 0.339), (0.802 > 0.347, 0.176 and 0.362), (0.819 > 0.144, 0.176 and 0.019) and (0.787 > 0.339, 0.362 and 0.362).

Table 5. Discriminant validity: HTMT ratio.

	SUS_ENTREP_	FIN_LIT_	FIN_INCLUS_	ENTREP_ORIENT_
SUS_ENTREP_	-	-	-	-
FIN_LIT_	0.414	-	-	-
FIN_INCLUS_	0.027	0.244	-	-
ENTREP_ORIENT_	0.424	0.439	0.216	-

highlights the HTMT Ratios values, which are all lower than the threshold value of 0.85 (Hair et al. 2013, 2019, 2021), supporting the distinctiveness of constructs. The connection between FIN_LIT_ and SUS_ENTREP_ has an HTMT Ratio of 0.414. FIN_INCLUS_ and SUS_ENTREP_ have an HTMT Ratio of 0.027. FIN_INCLUS_ and FIN_LIT_ have an HTMT Ratio of 0.244. ENTREP_ORIENT_ and SUS_ENTREP_ have an HTMT Ratio of 0.424. ENTREP_ORIENT_ and FIN_LIT_ have an HTMT Ratio of 0.439. And ENTREP_ORIENT_ and FIN_INCLUS_ have an HTMT Ratio of 0.216.

4.3. Structural Model Assessment

Once the measurement model has been validated, the structural model was appraised, after with the results illustrated in Figure 3. The significance of path coefficients in the model was assessed using a bootstrapping procedure, which considered both direct and indirect effects. This analysis confirms the hypotheses and provides insights into the relations among the variables in the model and their influence on the primary research question.

Fit indices are important in evaluating the alignment between empirical data and the structural model, with practitioners having various options to consider when presenting fit indices (Stone 2021). The importance of reporting the chi-squared test ($C_{min}=357.29$, ${\displaystyle \frac{C_{min}}{df}}=2.41$), as advised by Kline (2010, 2016) for sample sizes between 75 and 200, was highlighted. The root mean square error of approximation (RMSEA = 0.09) and the comparative fit index (CFI = 0.90) were calculated in line with Kline’s recommendations (Kline 2010, 2016), indicating a satisfactory fit between the observed data and the proposed model.

Additional fit indices, such as the Tucker Lewis index (TLI = 0.84) and normal fit index (NFI = 0.80), met the standard threshold values (≥0.90), further reinforcing the model’s validity. Parsimonious fit indices, including the parsimonious normed fit index (PNFI = 0.70) and parsimonious comparative fit index (PCFI = 0.75), were also considered to exhibit satisfactory results based on the threshold values (>0.50), supporting the adequacy of the structural model and suggesting a sound basis for further structural model exploration (Westland 2019). These collective results underscore the robustness of the model and lay a solid foundation for subsequent analyses and interpretations within the study’s framework.

Table 6. Hypotheses path coefficient results.

Relationship	Estimate	S.E.	C.R.	p-Value	Hypothesis
FIN_INCLUS_ → FIN_LIT_	0.771	0.345	2.237	0.025 1	H3 accepted
ENTREP_ORIENT_ → SUST-ENTREP_	0.878	0.335	2.621	0.009 2	H5 accepted
FIN_LIT_ → SUS_ENTREP_	0.389	0.118	3.285	0.001 3	H2 accepted
FIN_INCLUS_ → SUS_ENTREP_	−0.392	0.392	−1	0.318	H1 rejected

¹ p-value > 0.05. ² p-value > 0.01. ³ p-value > 0.001.

presents the hypotheses and path coefficient results. The findings reveal that FIN_LIT_ and FIN_INCLUS_ have a positive and significant relationship (with a beta value (β) = 0.771; p-value < 0.05). Additionally, ENTREP_ORIENT_ and FIN_LIT_ positively and significantly impact SUST_ENTREP_ (β = 0.878; p-value < 0.01 and β = 0.389; p-value < 0.001, respectively). In contrast, FIN_INCLUS_ negatively and non-significantly impacts SUST_ENTREP_ (β = −0.392). The results support H2, H3, and H5 and oppose H1.

Additionally, the results indicate that the indirect (mediated) effect of financial inclusion (FIN_INCLUS_) on sustainable entrepreneurship (SUST_ENTREP_) is significantly different from zero at the 0.05 level. This supports hypothesis H4, demonstrating that financial literacy (FIN_LIT) mediates the relationship between financial inclusion and sustainable entrepreneurship (β = 0.3; p-value = 0.013) (see

Table 7. Classical approach from Baron and Kenny (1986).

	Direct Effects	Indirect Effects	Total Effects
FIN_INCLUS_ > FIN_LIT_ > SUST_ENTREP_	−0.392	0.3 1	−0.092	H4 is supported, and its indirect effect is statistically significant
Two-Tailed Significance	p = 0.398	p = 0.013	p = 0.192
	The direct (unmediated) effect of financial inclusion (FIN_INCLUS_) on sustainable entrepreneurship (SUST_ENTREP_) is not significantly different from zero at the 0.05 level (p = 0.398, two-tailed). This result is based on a bootstrap approximation using two-sided bias-corrected confidence intervals.	The indirect (mediated) effect of financial inclusion (FIN_INCLUS_) on sustainable entrepreneurship (SUST_ENTREP_) is significantly different from zero at the 0.05 level (p = 0.013, two-tailed). This result is based on a bootstrap approximation using two-sided bias-corrected confidence intervals.	The total (direct and indirect) effect of financial inclusion (FIN_INCLUS_) on sustainable entrepreneurship (SUST_ENTREP_) is not significantly different from zero at the 0.05 level (p = 0.903, two-tailed). This result is based on a bootstrap approximation using two-sided bias-corrected confidence intervals.

¹ p-value > 0.05.

).

Finally, Table 7 details the moderating role of entrepreneurial orientation (ENTREP_ORIENT_) on the relationship between financial inclusion (FIN_INCLUS_) and sustainable entrepreneurship (SUST_ENTREP_). The coefficient for this moderating effect is −0.383, with a p-value of 0.056, indicating that hypothesis H6 is not supported. This suggests that entrepreneurial orientation does not significantly moderate the relationship and actually diminishes the positive impact of financial inclusion on sustainable entrepreneurship, as illustrated in

Table 8. Moderating role test.

	Estimate	S.E.	C.R.	p-Value
FIN_INCLUS_→ SUST_ENTREP_	1.355	0.764	1.774	0.076
INTER→ SUST_ENTREP_	−0.383	0.2	−1.91	0.056
ENTREP_ORIENT→ SUST_ENTREP_	0.639	0.141	4.515	1

¹ p-value < 0.001.

and Figure 4.

Empirically, four out of six hypotheses were confirmed, confirming the relationships, both direct and indirect, between the latent exogenous and endogenous constructs.

4.4. Discussion of Results

The findings indicate that financial literacy and financial inclusion have a positive and significant relationship (β = 0.771; p-value < 0.05), matching with previous findings (Nyarko et al. 2023; Lontchi et al. 2022; Grohmann et al. 2018; Sangeetha et al. 2017), and implying that appropriate knowledge of financial culture leads to being financially included, as entrepreneurs are aware of concepts, instrument, and techniques that can develop their businesses and maintain them sustainably over time. The government might implement policies that improve numeracy and financial inclusion simultaneously through financial literacy (Grohmann et al. 2018). This finding can help the Moroccan government build the foundations of financial literacy and make financial inclusion flexible. Morocco has been part of international programs affecting these two aspects for years, yet it appears in rankings that are unworthy of its reputation and its ambitions. Programs should be customized by area by allowing both in-person and online certificates. Furthermore, the government should create a climate of trust and financial guarantees so that financial institutions are encouraged to support Moroccan entrepreneurs and entrepreneurship.

Many researchers (Wales et al. 2020; Kraus et al. 2012; Callaghan and Venter 2011; Islam et al. 2011; Li et al. 2009; Lumpkin and Dess 1996) considered entrepreneurial orientation and sustainable entrepreneurship under different contexts and concepts, and found out that the higher the entrepreneurial orientation, the more critical the sustainability of entrepreneurship is, which aligns with this study’s results and confirms that entrepreneurial orientation positively and significantly impacts sustainable entrepreneurship (β = 0.878; p-value < 0.01). Furthermore, adopting adequate behavior and competency allows entrepreneurs to make the right decisions, avoid precipitation, and be more resilient.

Prior studies (Khan et al. 2022; Lontchi et al. 2022; Burchi et al. 2021; Chepngetich 2016) confirmed that gaps in financial literacy could harm the sustainability of entrepreneurship, and damage the whole economy for some of them. The findings of this research support the results revealed in the related studies and state that financial literacy positively and significantly impacts sustainable entrepreneurship (β = 0.389; p-value < 0.001). Hence, entrepreneurship can be enhanced and directed towards sustainability by the entrepreneur mastering good financial practices and mechanisms. In the Moroccan context, political decision-makers must once again encourage this vocation by shifting the behavior of young Moroccans toward entrepreneurship. The adoption of such competencies and behaviors shapes well-oriented sustainable entrepreneurship. They should engage in community workshops by partnering with local NGOs (Non-Governmental Organizations) to teach entrepreneurs about financial literacy with consideration to those in rural areas. They also have to revisit and refine the financial literacy content to meet Morocco’s requirements and reflect reality and culture to improve the sustainability of the entrepreneurial ecosystem. Similarly, they can integrate early financial literacy into educational programs to help shape future entrepreneurs. Relatedly, the best approach they can adopt is creating seminars about real-life experience and encouraging peer networks, wherein successful entrepreneurs discuss their trajectories and teach young entrepreneurs about their failures.

Despite the rush of interest directed towards financial inclusion, few scholars (Ajide 2020; Jiang et al. 2019; Goel and Madan 2019; Wang and Tan 2017) have linked financial inclusion and sustainable entrepreneurship, considered their relationship, and concluded on a positive and significant influence. The findings of this study show a negative and non-relevant relationship between the two constructs, which opposes the cited scholars’ outcomes and rejects the initial hypothesis, saying that the link is positive and significant; however, the findings align with those of Adamu and Suleiman’s (2018) study stating that financial inclusion has a negative impact on inclusive growth when considering 15 West and East African countries. This conclusion can be attributed to barriers to entry that hamper access to financial services even for literate entrepreneurs, preventing them from properly utilizing financial resources, and being inclusive in order to sustain their entrepreneurship. The Moroccan banking system is highly sophisticated, and banks and financial institutions have experienced a significant growth; however, the financialization of the overall economy is modest. Additionally, banking companies are risk-averse, which restricts access to funds and the use of financial services, leading to a negative and insignificant connection with sustainability. Although financing does not impede the sustainability of entrepreneurship in the case of Morocco, the access to credit is slightly limited, with 21% of credit lines available to SMEs (World Bank 2019; enterprise survey). Given the insignificant direct impact of financial inclusion on sustainable entrepreneurship (β = −0.392), the study further investigated the mediating role of financial literacy. The findings reveal that financial literacy partially mediates this relationship (β = 0.3; p-value = 0.013), aligning with preceding studies (Lontchi et al. 2022; Burchi et al. 2021; Ye and Kulathunga 2019). This suggests that while Moroccan entrepreneurs may have access to financial resources, inadequate financial literacy can impede sustainability efforts. With respect to these findings, Moroccan policymakers, through the Central Guarantee Fund (CGF), have to extend the public guarantee to enable financial institutions to enlarge their offerings to newly established SMEs and entrepreneurs. They should be more efficient in dealing with insolvency. Also, readdressing and including the informal sector into the economy is critical. Such attempts may allow people within this sector to fulfill all requirements needed to open bank accounts, contract loans, and access funds. Generally, the absolute level of SME financial inclusion is underestimated due to the significant fragment that the informal sector constitutes in Morocco (Cardarelli et al. 2022). In addition, policymakers have to extend the NFIS program to include entrepreneurs and coops in rural and hidden areas by promoting fintech, and by developing digital systems and mobile devices.

Similarly, the study deliberated on the capacity of entrepreneurial orientation to strengthen the nexus between financial inclusion and sustainable entrepreneurship. The conclusions for the case of Morocco were insignificantly negative and contradictory to the outcomes of previous empirical studies (Li et al. 2008; Richard et al. 2004). Consequently, being entrepreneurship-oriented does not reinforce the link between the two constructs, and does not ensure the sustainability of financially inclusive Moroccan entrepreneurship. Despite the recent inauguration of the NFIS program in Morocco, which aims to bridge financial inclusion gaps by improving access to financial and technological resources for marginalized populations while encouraging financial literacy, it is clear that these efforts must be expanded. A more comprehensive and holistic approach is needed to effectively address the remaining barriers to financial inclusion in the country (Ocampos 2023). This strategy should take into account not only the provision of financial services, but also the socio-economic factors that contribute to the exclusion by reshaping and remodeling all segments of the population to fully participate in the financial system.

5. Conclusions

Businesses face social and economic forces that might result in biases that endanger their companies’ survival, as entrepreneurs strive to make their enterprises sustainable. This research aims to increase the knowledge of the variables influencing sustainable entrepreneurial performance in response to this dynamic environment. The impacts of financial literacy, financial inclusion and entrepreneurial orientation on sustainable entrepreneurship among Moroccan entrepreneurs are examined. Additionally, the nuances of these interactions are assessed by including mediating and moderating variables in an effort to improve and illustrate precision. To be able to conduct this study, SEM-PLS was adopted to verify the empirical data and confirm the constructs and their items. The research not only offers valuable managerial consequences, but also improves theoretical perspectives and adds practical insights.

The study indicates that financial literacy and financial inclusion are positively and significantly connected (β = 0.771; p < 0.05), aligning with previous research and heightening the role of financial knowledge in promoting entrepreneurship and sustainable business practices. It suggests that Morocco should enhance financial literacy through tailored policies, improving both numeracy and inclusion. While financial literacy positively impacts sustainable entrepreneurship (β = 0.389; p < 0.001), the relation between financial inclusion and sustainability is negative and insignificant in the Moroccan context (β = −0.392). However, financial literacy partially mediates this relationship, indicating that access to finance alone is insufficient for sustainability without proper financial knowledge. Entrepreneurial orientation was found not to strengthen the connection between financial inclusion and sustainable entrepreneurship in Morocco, contradicting findings from other contexts. The study calls for targeted programs and initiatives to improve financial literacy and encourage entrepreneurship.

The population frame is the main limitation of this study, essentially due to the lack of comprehensive datasets. Due to gaps and ambiguities in determining the population, an exhaustive list of 200 entrepreneurs was explored. It comprises a valuable dataset that aligns with the objectives of academic research while upholding the data quality. The model applied for this research deals with small and complicated sample sizes, and all reliability and consistency tests were run and validated, presenting consistent statistical significance to help mitigate this constraint. Furthermore, the population’s variability is believed to be minimal, as the entrepreneurs show some shared and homogeneous characteristics, and the dataset contains no outliers. Also, the process of selecting contributors to the study was based on focused and uniform criteria that favor its generalizability and applicability. To improve the validity of the study’s findings and the methodology’s robustness, future research could consider new and more accurate factors that may influence sustainability among entrepreneurs, as well as cross-disciplinary collaboration and community engagement, by partnering with experts and collaborating with local organizations to stimulate participant recruitment. The alternative recruitment strategy using snowball sampling can constitute a creative way to reach marginalized and hidden participants and enlarge the population. In addition, the use of artificial intelligence can be a more advanced approach to both improving the quality and reducing the bias of the results.

Additionally, further explorations of the concept of financial inclusion may provide deeper insights into its various impacts on entrepreneurial businesses. Researchers may also consider including demographic statistics as control variables to comprehensively assess their impact on sustainability dynamics.

To enhance research methodologies, scholars could consider incorporating interviews with entrepreneurs to gain qualitative insights that supplement the quantitative data. This approach would permit a deeper and more thorough comprehension of the complexities and specifics involved. Additionally, expanding the scope of future studies by including larger companies or conducting cross-country comparative analyses could offer a broader perspective and advance the generalizability of the findings.

Although the evidence presented in this study is strong, further confirmation may be possible using additional statistical tools. Diversifying the analytical approaches may strengthen the validity of the conclusions drawn, offering a greater comprehension and understanding of the factors that shape the sustainable performance of entrepreneurship in the Moroccan context. Fundamentally, the continuous refinement and expansion of research methodologies will contribute to increasing knowledge about sustainable entrepreneurship, providing practitioners, policymakers, and academics with an exhaustive understanding of the dynamics at play.