Financial Education and Micro-Business Performance: Mediating Role of Financial Inclusion in the Digital Age of Micro-Business in the Capital of Peru

Economic challenges are a latent reality in emerging economies such as Peru, and the growth capacity of entrepreneurs depends largely on certain factors, such as education and financial inclusion. To delve deeper into these factors, this study aims to analyze the association between micro-business performance, education, and financial inclusion, as well as to evaluate the mediating role of financial inclusion in the association between financial education and micro-business performance. The study was of an explanatory design. The research focused on owners, business owners, general managers, and other administrators of micro-businesses who could provide information on the performance of the companies. The results showed a statistically significant positive association between micro-business performance, education, and financial inclusion. It was also proven that financial inclusion is positively associated with micro-business performance, and it was also proven that financial inclusion has a mediating role in the association between financial education and micro-business performance. While these relationships are meaningful, the moderate explanatory power of the model (R² = 0.370–0.488) suggests that financial education and financial inclusion are important but partial contributors to business outcomes in this context. In conclusion, entrepreneurs with stronger financial knowledge appear to be better positioned to navigate business challenges and leverage financial systems, which may contribute to improved micro-business performance indicators.