Dynamics of Financial Decisions for 21st-Century Economic Environments: The Link Between Business Performance, Inclusion, and Financial Literacy of Entrepreneurs in Latin America

Abstract

Entrepreneurs represent a key piece in the generation of jobs and contribution to the economy through the performance of their businesses. Taking into account that literacy and financial inclusion constitute a business facilitator for the development of businesses, this study was based on analyzing the three variables, aiming to identify whether inclusion and financial literacy influence business performance. Through a non-experimental, quantitative study based on structural equations, a sample of 469 entrepreneurs from Peru, Bolivia, and Colombia was studied. The hypotheses were supported by observing the positive effect of one component of financial literacy (Cash Forecasting) and three components of financial inclusion (Access, Barriers, and Use) on Business Performance. However, the proposed model shows that the direct effect of two components (Bookkeeping and Financial Education) of financial literacy is not statistically significant. Therefore, these factors are vital tools that can help Latin American entrepreneurs make informed financial decisions, manage resources effectively, and build solid and sustainable businesses.

1. Introduction

Entrepreneurs in Latin America, including Peru, face significant challenges as they battle in the face of increasingly fierce, informed, and complex market competition that is constantly changing and often out of control. This stimulates business people, researchers and managers to analyze the COVID-19 pandemic that caused a global financial crisis with a greater impact than the 2008 crisis (Garad et al., 2021) and, although trade in goods, globally, has been on track to recover pre-pandemic levels, from May to the end of 2021, trade in services had not yet fully recovered (Arriola et al., 2023). Latin America is considered the region most affected by the coronavirus pandemic. In reference to this, Casilda (2022) mentions that, to achieve a ‘solid’ recovery, policies are necessary with an emphasis on industrial, technological, and educational investments, aiming at the growth of sectors that create stable and quality employment.

After the pandemic, the business world has suffered the largest economic contraction since the second post-war period. With increasing unemployment, poverty, inequality, and informality, the greatest impacts of this crisis have been felt in developing countries. Sustainable entrepreneurship and the strength of entrepreneurs are key elements for economic recovery in Latin America, since a large part of its economy is informal and led by this union. In Bolivia, a Latin country with a large contribution to certain oilseed products, registered a growth of 2.28% of the Gross Domestic Product (GDP) for the first quarter of 2023 (INE, 2023), which indicates that the returns are positive and respond to different causes, among them is the education of entrepreneurs.

Recently, López-Lapo et al. (2022) have studied the situation of financial education in Latin America, and in addition to emphasizing its importance, the studies agree on the need to develop financial capabilities to promote not only personal development but also contribute to the economic growth of each country. People with good financial education will make better decisions for their families, increasing their well-being and economic security. Economically secure families will contribute to vital and prosperous communities, which in turn will foster community economic development.

Several studies around the world reveal topics associated with financial education, which involve technological innovation (Duréndez et al., 2023), the propensity to take risks (Molina-García et al., 2023), green economic sustainability (Beny et al., 2023), participation in the stock market (Handranata et al., 2023), investment decision making (Iram et al., 2023), saving behavior (Mpaata et al., 2021), digital marketing and brand image (Suparno et al., 2023) and intelligence (Callis et al., 2023); this translates into a strongly positive impact on financial education, which is considered valuable for making effective decisions regarding the financial context, improving the financial well-being of people and society in general (Méndez-Prado et al., 2023).

The number of entrepreneurs in Latin America is truly uncertain, given that frequently some join and others desert the entrepreneurial path (Serenko et al., 2023). Responding to this phenomenon with an improvement in business performance is considered by high critics as a government and sector strategy, which means that the more significant the performance of entrepreneurs in Latin America, the greater the economic growth of a country will be (Safitri et al., 2023). This allows the creation of new jobs, more innovative services with greater social contribution, offering better quality export products, and developing an increase in entrepreneurship skills in each sector (Iramani et al., 2018). The World Economic Forum (2023) issued a report declaring that 2023 would be a good year for the specialized entrepreneurial community, strengthening and prioritizing entrepreneurship with the purpose of reducing obstacles, improving the quality of life, and promoting sustainable growth.

The literature on the relationship between financial literacy and financial inclusion suggests that financial literacy provides individuals with the knowledge and skills necessary for greater financial inclusion (Ozili, 2025; Zhang et al., 2025). Previous studies have examined each variable in isolation in relation to business performance, finding that financial literacy improves management practices and decision-making capacity (Rambely et al., 2025), while financial inclusion enhances the entrepreneur’s ability to invest, innovate, and scale their business by ensuring access to necessary financial resources (Barani et al., 2026). However, the literature lacks studies that model the combined effect of both constructs, resulting in an incomplete understanding of how they operate simultaneously and interrelatedly. This gap is particularly relevant in contexts where both deficits coexist and may reinforce each other. Additionally, existing studies have been conducted predominantly in economies with relatively well-established institutional structures such as Indonesia, Brazil, France, Ecuador, and Saudi Arabia (Guennoune et al., 2025; Masrizal et al., 2025; Paraboni et al., 2025; Pérez-Campdesuñer et al., 2026; Rahadjeng et al., 2023), which limits the transferability of their findings to contexts of high informality.

Peru, Bolivia, and Colombia have high rates of informality; in particular, in Peru, informality affects 73% of workers, with marked gender disparities (Silva-Peñaherrera et al., 2022), while in Colombia this figure varies widely by region, reaching as high as 97% in some municipalities (Acosta et al., 2025). Additionally, due to limited access to formal financial infrastructure, only 55.9% of Peruvian adults have a bank account, and only 13.4% have an active credit card, reflecting low levels of financial literacy among the population (Minchan-Wolstrohn & Rodríguez-Serra, 2025; Náñez et al., 2024). This scenario is part of weak institutional environments where corruption and bureaucracy represent a significant barrier to formalization and financial access (Pesce et al., 2021), thereby disrupting the mechanism that enables improved financial literacy and financial inclusion, which in turn leads to adequate business performance.

Given this landscape, the literature presents two complementary gaps that this study seeks to address: first, a methodological gap, given that previous studies have examined financial literacy and financial inclusion as independent predictors of business performance, without modeling their combined effect or the possible interactions between the two variables. After conducting a systematic search for all three constructs simultaneously, no results were found, confirming the absence of explanatory models that integrate them into a single analysis. Second, a contextual gap is addressed, as no research has addressed this relationship in Latin American economies where high informality, restricted access to the formal financial system, and weak institutional environments are not merely a backdrop but rather modify the very mechanisms through which these variables operate.

Recent studies reveal the positive impact of various factors on the performance of Micro, Small, and Medium-sized Enterprises (MSMEs). The scientific evidence analyzed comes from Southeast Asian economies (Indonesia, Sri Lanka, and India), sub-Saharan African economies (Ghana and South Africa), and global reviews. However, none of the reviewed studies model the combined and interactive effect of both variables in the Latin American context, which is characterized by high levels of labor and business informality, restricted access to the formal financial system, and significant socioeconomic disparities. Furthermore, most studies analyze financial literacy and financial inclusion in isolation or in partially mediating relationships without capturing the complementary dynamics between them. Three Indonesian studies confirm that financial inclusion acts as a bridge between financial literacy and business performance (Aisyah et al., 2024; Rahadjeng et al., 2023; Tandilino et al., 2025). However, its replication in Peru, Bolivia, and Colombia is yet to be explored. Therefore, this study aims to estimate the combined effect of financial literacy and financial inclusion on business performance among entrepreneurs in these countries, providing empirical evidence from a structurally distinct context in which these dynamics are particularly significant.

The present study is then divided into the following sections: Section 2 contains the theoretical framework and hypothesis development. Section 3 describes the materials and methods. Section 4 focuses on the results. Section 5 presents the discussion and conclusions.

2. Theoretical Framework and Hypothesis Development

2.1. Financial Literacy

Financial literacy is known as the process through which individuals acquire skills and competencies in the money market that, among other things, increase access to banking products, knowledge, and understanding of the economy for greater investment opportunities (Long et al., 2023). It is a fundamental skill required to thrive in today’s business and society (Hasan et al., 2023), and a vital element supporting financial decision-making for entrepreneurs (Ngek, 2016). It is also considered the ability to use knowledge and understanding of financial concepts to make good business decisions in various financial circumstances; in this sense, those with financial literacy tend to make relatively fewer mistakes (Culebro-Martínez et al., 2024). It is often considered a form of human capital (Preston & Wright, 2023). People who have developed financial literacy have learned to organize their finances better and manage their daily expenses more efficiently, maintain reserves or sufficient savings to meet contingencies or unforeseen situations, designate a percentage of their income for education and health, and enjoy stress-free years in post-retirement (Choudhary & Jain, 2023).

It should be noted that contemporary literature, particularly in business and applied contexts, supports a broader understanding of financial literacy, which should integrate knowledge, skills, attitudes, and observable financial behaviors. In this sense, the components of financial literacy used in this study (financial education, bookkeeping, and cash forecasting) do not represent a departure from the concept of financial literacy, but rather operationalize its applied and functional dimension, particularly relevant in business environments. Financial education encompasses the cognitive component (knowledge acquisition), bookkeeping, and cash forecasting, which reflect the practical application of financial knowledge in managing financial resources, liquidity planning, and supporting business decision-making.

In this regard, Tumba et al. (2022) pointed out that financial literacy considers three components: financial education, bookkeeping, and cash forecasting. Financial education is exercising mastery of the most basic financial principles and practicing skills to make assertive decisions in business performance. Cash forecasting is an evaluation of the movement of cash within any entity, known as cash budgeting or cash flow, it is a financial planning process used to estimate and project the cash inflows and outflows of a company over a period given future period, manage the liquidity of a business and ensure that they have enough cash available to cover their financial obligations, such as debt payments, operating expenses, and other financial needs. Bookkeeping is a fundamental process in the business of any business. It is a system of recording and controlling the financial transactions of an organization or company to provide accurate and timely information about the financial situation of the entity, as well as its economic results.

2.2. Financial Inclusion

The concept of financial inclusion itself was first formally defined by five regulatory agencies at a meeting of the Global Partnership for Financial Inclusion; it was subsequently variously interpreted by financial market participants as a process, phase, or state of financial development (Shapoval et al., 2021). History shows that the concept of financial inclusion as a means to achieve more equitable growth has gained popularity since 2005 (Rani & Sundaram, 2023). Most previous studies define it as the access to and effective use of a range of relevant products and services provided in a well-regulated environment, where consumer protection exists (Aisyah et al., 2024; Shapoval et al., 2021). However, financial inclusion also implies equal access and participation in financial services for all groups (Mukherjee & Sood, 2020). This means that both people and companies have the opportunity to use and access a wide range of financial products (savings accounts, checking accounts, payment services, insurance, loans, and other financial products), fairly and without discrimination (Khan et al., 2022; Shihadeh, 2020). In this regard, digital financial inclusion plays a crucial role in empowering MSMEs (Tandilino et al., 2025).

Additionally, multiple studies highlight the benefits of promoting greater financial inclusion at the national level. According to Rani and Sundaram (2023), expanding access to financial services can boost economic development and poverty reduction. Along these lines, Dikshit and Pandey (2021) and Tia et al. (2023) suggest that by providing more financial tools to vulnerable sectors, the institutions of the formal financial system contribute to advancing several Sustainable Development Goals, such as inequality reduction, inclusive growth, and food security, among others. Considering this, this research adopts a conceptualization of financial inclusion as a process that seeks to guarantee the equitable participation of all citizens in the formal financial market, as proposed (Shapoval et al., 2021). That is, it focuses on promoting more comprehensive interactions between consumers and institutions.

There are strong arguments to consider financial inclusion as a priority issue. As suggested by Cardona et al. (2018) and Hewa et al. (2021), ensuring that all people and communities can fully participate in the formal financial system is crucial to democratize access to economic opportunities and financial tools indispensable in the contemporary world. Promoting broader and more equitable integration into the financial market enhances social and economic development, in addition to mitigating inequality gaps. Decisive public policies are therefore required to consolidate more just and inclusive societies. The lack of financial services can exclude certain groups from society and limit their ability to save, invest, and manage risks (Mukherjee & Sood, 2020).

Conversely, financial inclusion is considered vital to reduce poverty, promote sustainable economic development, and equality (Garz et al., 2021). In this sense, academic literature analyzes various approaches and strategies to improve the financial sector, such as developing a national policy to promote financial technologies, improving financial education, considering streamlining processes, and ensuring equal access to financial services. for the benefit of the entire society (Fachrurazi et al., 2023; Hasan et al., 2023).

The financial inclusion metric is based on the recognition that financial inclusion is a multidimensional phenomenon that cannot be reduced to a single indicator. Following the proposal by Lontchi et al. (2022), three interrelated dimensions are distinguished. On the contrary, Access accounts for whether entrepreneurs have formal financial services at their disposal, such as an active bank account, realistic opportunities to obtain credit, and available channels for making transfers and remittances. Likewise, usage goes beyond mere availability and asks whether these services are actually used in day-to-day business operations, whether through electronic transactions, systematic savings, or the receipt of payments via bank transfers. Finally, barriers capture what hinders financial participation, such as mistrust of institutions, the perception that costs are prohibitive, or simply the geographical distance to a branch. Incorporating this third dimension is particularly relevant in the Latin American context, where financial exclusion does not always stem from a lack of supply, but rather from factors that discourage demand.

2.3. Business Performance

Having a good entrepreneurial spirit builds more competitive businesses, which means that an entrepreneur will not be able to achieve these standards without a vision that creates opportunities for improvement and growth; that is, business performance is not something that happens instantly or effortlessly, it is a process (Wijaya & Rahmayanti, 2023). This could be considered the result of multiple decisions during the business year, which remain in the hands of senior management and the second hierarchical layer. This indicator deserves a diligent analysis of the economic and financial impact of the use of preventive and corrective measures. that impact in the long term. For this reason, it is important to do an analysis from a long-term perspective, since, with such a vision, senior management could make decisions that prepare the organization for more sustainable and lasting growth (Aisjah et al., 2023; Feng & Goli, 2023; Wijaya & Rahmayanti, 2023).

Business performance is an achievement, the result of individual work and that of the entire company in each period. It is associated with a specific value or standard size of the company’s work, achieving the organization’s goals (Desiyanti & Kassim, 2020). It is a metric that evaluates the efficiency and effectiveness of a company in achieving its objectives (Reijonen, 2008), is the measure of the productivity of the resources committed to a business, where the most essential thing is to guarantee its growth and permanence, it reflects the extent to which companies obtain a relative profit, the return on investment and the total growth of sales (Castañón et al., 2023).

Business performance can be measured from two basic approaches: Financial and non-financial approaches. Non-financial metrics include customer happiness, employee turnover, and productivity, while financial measures include sales and profits before taxes (Owolabi et al., 2021). Business performance has a strong proximity to the theory of interested parties, which states that economic entities place their concentration on interest groups. This theoretical position supports an association between the company and the community (internal and external). In that sense, it is the company that interacts with everyone, especially with the internal part (managers and workers) (Aisjah et al., 2023). To measure business performance, one must choose which aspects of the outcome to focus on. Following Tumba et al. (2022), a subjective, self-reported approach is adopted, in which the entrepreneur assesses how their business has evolved in key areas such as asset growth, increases in revenue and profitability, their competitive position, and the productivity of each employee. This approach is particularly relevant when working with Latin American micro and small business owners, who often lack formal accounting records but do have a clear sense of how their business is performing.

The extant literature evidences a growing yet fragmented field. Most studies on financial literacy and business performance have been conducted in contexts such as Ghana, Malaysia, Nigeria, India, and Indonesia (Appiah & Venyo, 2024; Che et al., 2024; Juneja et al., 2025; Kurniasari et al., 2025), while Latin America remains underexamined despite its distinctive structural conditions. The same is true of financial inclusion: although it has garnered research attention, it is often analyzed in isolation, without being linked to other constructs within an integrated explanatory model. To address this gap, this study integrates both constructs into a unified PLS-SEM framework, applied to entrepreneurs in Peru, Bolivia, and Colombia, providing empirical evidence on how financial literacy and financial inclusion influence business performance in regions where informality, low banking penetration, and restricted access to formal financial services are everyday realities.

2.4. Hypothesis Development

Based on the concepts defined in previous sections, financial literacy, which encompasses cash forecasting, bookkeeping, and financial education, constitutes a form of human capital (Manoharan et al., 2024; Romadhon & Mulyadi, 2025) with a direct influence on the quality of business decisions; while financial inclusion, which encompasses access to, use of, and the absence of barriers to the formal financial system, represents the structural dimension that enables entrepreneurs to convert those resources into productive capacities. From the perspective of the Resource-Based View (Barney, 1991), both constructs operate as complementary strategic resources; that is, neither is sufficient on its own, which justifies their joint analysis. Therefore, it is expected that each dimension of financial literacy will positively influence business performance, and that financial inclusion will have a significant effect on business performance. Consequently, an explanatory model of business performance emerges, whose theoretical framework is presented in Figure 1.

As mentioned in the preceding paragraphs, financial literacy encompasses three dimensions. The first of these is cash forecasting, which enables entrepreneurs to anticipate liquidity needs, plan expenses, and avoid financial shortfalls that could disrupt business operations (Abdelazim et al., 2025; Małkus & Nalepa, 2023), making cash forecasting a strategic tool for improved performance; indeed, it has been proven that when an entrepreneur uses forecasting mechanisms, they achieve a high level of management efficiency within the cash conversion cycle (Singh et al., 2024). This ability to anticipate leads to informed decision-making aimed at optimizing resources through appropriate techniques capable of addressing crises, as it has been demonstrated that anticipating cash flows mitigates financial uncertainty and optimizes strategic planning (Pawala et al., 2025).

However, previous research indicates that bookkeeping is closely linked to growth in sales, profits, and overall company performance (Tumba et al., 2022); on the contrary, the lack of bookkeeping contributes to business failure, whereas its use mitigates risk and improves financial sustainability (Azman et al., 2021; Kishor et al., 2025). In this regard, the literature suggests that bookkeeping supported by automated systems improves the accuracy of records, reduces human error, and simplifies tasks, thereby enhancing the company’s performance (Ahmadi et al., 2025).

The effect of cash forecasting on business performance is theoretically grounded in Cash Flow Management Theory, developed within the management accounting and financial management traditions (Brigham & Ehrhardt, 2017; Drury, 2013), which holds that an entrepreneur’s capacity to anticipate, monitor, and control cash flows is a fundamental determinant of operational continuity and strategic resource allocation. By reducing liquidity uncertainty, cash forecasting enables entrepreneurs to plan investment cycles, meet short-term obligations, and avoid financial distress, thereby directly enhancing business performance (Putri & Suartana, 2018; Víghová & Štangová, 2021). Based on the above, the following study hypothesis is proposed:

H1. 

Cash forecasting has a positive effect on business performance.

The effect of bookkeeping on business performance is theoretically explained by Accounting Information Theory, rooted in Simon’s (1955) bounded rationality framework, which holds that decision-makers operate under cognitive limitations and therefore depend on reliable information systems to improve the quality of their choices. In entrepreneurial firms, systematic bookkeeping provides a structured information base that reduces uncertainty, enables performance monitoring, and supports evidence-based strategic decisions, all of which contribute to financial sustainability and business growth (Aladejebi & Oladimeji, 2019; Roslan et al., 2018). However, the presence of accounting practices increases business performance by providing timely information that guides decision-making and resource control (Serin et al., 2025). Based on the above, the following study hypothesis is proposed:

H2. 

Bookkeeping has a positive effect on business performance.

Although evidence on financial education and business performance has grown in recent years, findings remain mixed and context-dependent (Iramani et al., 2018; Irman et al., 2021; Rahmawati et al., 2023; Tumba et al., 2022). Studies conducted in Ghana, Nigeria, and Indonesia have documented a positive and significant relationship between financial education and entrepreneurial outcomes (Rahadjeng et al., 2023; Tumba et al., 2022), while others indicate that the effect is mediated by variables such as access to finance, risk tolerance, or the institutional context (Appiah & Venyo, 2024). This heterogeneity suggests that the relationship cannot be assumed to be uniform across all contexts and that context-specific studies are needed to clarify the conditions under which financial education translates into improved entrepreneurial performance.

However, existing literature suggests that financially literate people are more involved in financial markets because they are familiar with financial trends. Financial education, also known as financial knowledge, means having developed greater knowledge in the financial market and all its services, and this is necessary to improve financial capabilities and turn them into a competitive advantage (Mohamud & Mohamed, 2023). In other words, company managers who have more knowledge about the use of financial models have a positive effect on business performance. It should be noted that there are still no studies that support the opposite (Iramani et al., 2018; Rahmawati et al., 2023).

Now, access to financing refers to the ability of an entity, whether a company, person, or organization, to obtain the funds or financial resources necessary to carry out its activities, projects, or activities (Hasan et al., 2023; Su et al., 2023). This access can come from different sources and take different forms (bank loans, investment and venture capital, bond issuance, financing through non-bank financial institutions, lines of credit, government subsidies and support) (Danladi et al., 2023; Konou, 2023). In this sense, access to financing is a key factor for growth (Arner et al., 2020) and the sustainability of companies and other entities (Baker, 2021; Lontchi et al., 2022). The ability to obtain sufficient financing on favorable terms can have a significant impact on the long-term success and viability of a company (Birochi & Pozzebon, 2016; Wirdiyanti et al., 2023).

Indeed, the association between access to financing and business performance can be approached from multiple angles. Such access is crucial for operating capital, expansion, innovation, cash flow management, and investment in marketing, among other factors that enhance the competitiveness and resilience of businesses (Irman et al., 2021; Su et al., 2023). It should be noted, however, that according to Sajuyigbe et al. (2020). The benefit of financing depends largely on its strategic management. That is, as Baker (2021) points out, companies must ensure that credit resources are invested in areas aligned with their business goals and with the potential for positive returns.

The relationship between financial education and business performance is theoretically grounded in Human Capital Theory, originally formulated by Becker (1964) and Schultz (1961), which posits that investments in knowledge, skills, and competencies translate into enhanced individual productivity and, consequently, into superior economic outcomes. In the entrepreneurial context, financial education constitutes a domain-specific form of human capital that augments the decision-making capacity of entrepreneurs, enabling more effective resource allocation, risk assessment, and long-term planning, and thereby contributing to improved business performance (Lindorff & Prior Jonson, 2013; Rahayu & Rahmawati, 2022). Considering these approaches, the hypotheses that will guide this study are:

H3. 

Financial education has a positive effect on business performance.

The link between financial education and access to the financial system is theoretically supported by Financial Capability Theory, as developed by Johnson and Sherraden (2007) and Sherraden (2010), which distinguishes between financial knowledge (the cognitive dimension) and financial capability (the behavioral dimension, the actual ability to act on that knowledge within given institutional constraints). This framework argues that individuals with higher levels of financial education are better equipped to identify suitable financial products, understand credit requirements, and navigate formal financial institutions, thereby effectively expanding their access to the financial system (Bongomin et al., 2017; Seghers et al., 2012). Considering these approaches, the hypotheses that will guide this study are as follows:

H4. 

Financial education has a positive effect on access to the financial system.

Financial statements, such as the balance sheet and income statement, provide detailed information about a company’s assets, liabilities, income, and expenses (Faccia & Petratos, 2021). A stable financial position can increase financiers’ confidence in the entrepreneur’s ability to manage financial resources (Babajide et al., 2020). Indeed, accounting records are valued by financial entities to analyze the payment capacity of a business, as they propose (Schramm & Taube, 2003). Along these lines, aspects such as the history of income and expenses, as well as liquidity levels, help establish the probability that a company can meet obligations such as servicing a loan, according to what they point out (Auyeung et al., 2005). Therefore, having organized balance sheets seems to favor the possibilities of qualifying for bank credit or other debt instruments by demonstrating solvency and financial discipline (Auyeung et al., 2005). Nevertheless, transparency is essential to generate the trust that financiers need to perceive, and accounting records play an important role in this context, since they allow entrepreneurs and financial entities to evaluate the effectiveness with which financial resources are managed (Quinn, 2017). In this sense, it is more likely that priority access to financing will be granted to applications with a history of effective management of income and expenses than to an entity that does not have these indicators (Mujiatun et al., 2023; Quinn, 2017).

The studies reviewed suggest a relationship between accounting records and access to financing, possibly because accounting records are the main tool for evaluating the financial situation of a company (Quinn, 2017). This association can arise from the evaluation of financial strength, payment and borrowing capacity, transparency and trust, effective management of resources, financial planning and forecasting, and legal compliance. Finally, financial actors rely on this information to make informed decisions about the viability and financial strength of a company before granting financing (Schramm & Taube, 2003).

The relationship between bookkeeping and access to the financial system is theoretically explained by Information Asymmetry Theory, originally formalized by Akerlof (1970) in his analysis of markets with incomplete information, and later extended to credit markets by Stiglitz and Weiss (1981), who demonstrated that lenders restrict credit supply when they cannot accurately assess borrower creditworthiness. Systematic bookkeeping mitigates this asymmetry by generating verifiable, standardized financial records that allow creditors to evaluate the financial position, repayment capacity, and management quality of entrepreneurial firms, thereby increasing their probability of obtaining formal financing (Álvarez et al., 2020; Fachrurazi et al., 2023). Based on the above, the following study hypothesis is proposed:

H5. 

Bookkeeping has a positive effect on access to the financial system.

Financial inclusion is an indicator and an important reference for the development and well-being of society (Dikshit & Pandey, 2021). An inclusive financial system is considered proactive and has become a key priority in many countries, including Peru (Dikshit & Pandey, 2021; Hasan et al., 2023; Hewa et al., 2021). Since financial inclusion refers to access and participation in financial services (bank accounts, credit, insurance, and other financial instruments), scientific literature affirms that there is a positive association between financial inclusion and business performance (Irman et al., 2021), especially in the case of entrepreneurs and small businesses (Anthanasius & Opperman, 2023; Gunawan et al., 2023; Irman et al., 2021; Mujiatun et al., 2023). However, it is important to highlight that the relationship between financial inclusion and business performance may vary by region, sector, and individual circumstances (Irman et al., 2021). Some studies suggest that financial inclusion could impact various aspects of business performance, such as Access to capital (Su et al., 2023), effective financial management (Hewa et al., 2021), risk reduction (Hasan et al., 2023), transaction facilitation (Babajide et al., 2020), improved market access (Rani & Sundaram, 2023), and growth and stability (Msweli & Mawela, 2021).

A study in Kenya found that access to the financial system made business transactions easier and allowed existing retail establishments to improve their performance (Gitonga & Kiraka, 2019). However, in Nigeria, it was observed that the use of the financial system increased their income, allowing their products to reach more people and achieving higher performance indicators in their businesses. At the same time, the study ensures that lack of money and financial illiteracy are the reasons for perpetual poverty in the country (Babajide et al., 2020). Indonesia, however, has taken government measures regarding access to the financial system for micro and small businesses through Regulation (No. 22/2010) of the Ministry of Finance, which provides greater support to the entrepreneur, to guarantee that all business actors can formally access financial institutions (Mujiatun et al., 2023). In this sense, business actors’ access to formal financial institutions will likely affect business performance, since it is difficult to develop without financial inclusion (Babajide et al., 2020; Gitonga & Kiraka, 2019; Mujiatun et al., 2023). Although these findings originate from Asian and African contexts, they suggest that the mechanisms through which access to, use of, and barriers within the financial system affect business performance could be replicated in Latin American business ecosystems, which are characterized by a high degree of informality.

The relationship between access to the financial system and business performance is theoretically grounded in Financial Inclusion Theory, as articulated by the Global Partnership for Financial Inclusion (GPFI) and the World Bank (2014), which posits that access to affordable, appropriate, and reliable formal financial services is a structural determinant of economic development and entrepreneurial productivity. Under this framework, access to credit, savings, and payment systems relaxes capital constraints, expands the investment frontier of firms, and strengthens their resilience to income shocks, all of which translate into improved business performance (Gitonga & Kiraka, 2019; Mujiatun et al., 2023). Based on the above, the following study hypothesis is proposed:

H6. 

Access to the financial system has a positive effect on business performance.

The relationship between the use of financial services and business performance is grounded in Financial Intermediation Theory, which, as formulated by Diamond (1984) and Levine (1999), holds that financial intermediaries enhance productive efficiency by reducing information and transaction costs, channeling savings toward productive investment, and facilitating risk diversification. Applied to entrepreneurs, this framework predicts that active use of financial products, including credit facilities, digital payment systems, and savings instruments, reduces operational frictions and improves liquidity (Babajide et al., 2020; Zambrano-Vargas & Vázquez-García, 2019) (Babajide et al., 2020; Zambrano-Vargas & Vázquez-García, 2019). Based on the above, the following study hypothesis is proposed:

H7. 

Use of the financial system has a positive effect on business performance.

The relationship between financial barriers and business performance is theoretically anchored in Institutional Theory, as developed by North (1990), which holds that formal institutions (laws, regulations, property rights) and informal institutions (norms, conventions) define the incentive structure of economies and, consequently, the opportunity set available to entrepreneurs. When institutional barriers, such as excessive collateral requirements, discriminatory credit policies, or burdensome regulatory compliance, restrict entrepreneurs’ access to formal financial services, they impose transaction costs that reduce productive efficiency and competitive capacity (North, 1990; Williamson, 1985). Empirical evidence in emerging economies confirms that institutional barriers to formal finance constrain growth and performance, particularly among micro and small enterprises (Matić et al., 2023; Tunio et al., 2021). Based on the above, the following study hypothesis is proposed:

H8. 

Barriers to the financial system have a positive effect on business performance.

The proposed model integrates direct effects (H1, H2, H3, H6, H7, H8), which are grounded in well-established first-order relationships reported in the prior literature, with mediation hypotheses (H4, H5), which capture the mechanism through which financial literacy components (financial education and bookkeeping) operate on business performance via access to the financial system (See

Table 1. Theoretical foundations of the research hypotheses.

Hypothesis	Theoretical Framework	Justification of the Relationship	Key Empirical References
H1: FC → BP	Cash Flow Management Theory	The capacity to forecast and control cash flows reduces liquidity uncertainty, enabling operational continuity and more effective strategic resource allocation.	Víghová and Štangová (2021); Putri and Suartana (2018) Aladejebi and Oladimeji (2019); Roslan et al. (2018)
	(Brigham & Ehrhardt, 2017; Drury, 2013)
H2: BK → BP	Accounting Information Theory	Systematic bookkeeping reduces bounded rationality in entrepreneurial decision-making by providing reliable performance signals, thereby supporting evidence-based management.	Rahayu and Rahmawati (2022); Lindorff and Prior Jonson (2013) Seghers et al. (2012); Bongomin et al. (2017)
	(Simon, 1955)
H3: FE → BP	Human Capital Theory	Financial education constitutes a domain-specific form of human capital that augments entrepreneurs’ capacity for resource allocation, risk assessment, and strategic planning.	Álvarez et al. (2020); Fachrurazi et al. (2023) Gitonga and Kiraka (2019); Mujiatun et al. (2023)
	(Becker, 1964; Schultz, 1961)
H4: FE → AC	Financial Capability Theory	Financially educated individuals possess the knowledge and behavioral capability to identify, evaluate, and access formal financial products and institutions effectively.	Babajide et al. (2020); Zam (Johnson & Sherraden, 2007; Sherraden, 2010)
H5: BK → AC	Information Asymmetry Theory	Verified financial records reduce creditor uncertainty about borrower creditworthiness, thereby lowering credit rationing and increasing entrepreneurs’ access to formal financing.	Víghová and Štangová (2021); Putri and Suartana (2018) Aladejebi and Oladimeji (2019); Roslan et al. (2018)
	(Akerlof, 1970; Stiglitz & Weiss, 1981)
H6: AC → BP	Financial Inclusion Theory	Access to formal financial services relaxes capital constraints, expands the productive investment frontier, and strengthens entrepreneurial resilience to income shocks.	Rahayu and Rahmawati (2022); Lindorff and Prior Jonson (2013) Seghers et al. (2012); Bongomin et al. (2017)
	(GPFI, 2011; World Bank, 2014)
H7: US → BP	Financial Intermediation Theory	Active use of financial intermediaries and products reduces transaction costs, improves liquidity management, and enables business scale-up through more efficient capital allocation.	Álvarez et al. (2020); Fachrurazi et al. (2023) Gitonga and Kiraka (2019); Mujiatun et al. (2023)
	(Diamond, 1984; Levine, 1999)
H8: BR → BP	Institutional Theory	Structural and institutional barriers, such as collateral requirements and regulatory burdens, impose transaction costs that restrict access to productive resources and constrain business performance.	Babajide et al. (2020); Zambrano-Vargas and Vázquez-García (2019)
	(North, 1990; Williamson, 1985)

). This indirect pathway addresses an identified gap in the Latin American entrepreneurship literature, where the mediating role of financial inclusion has received limited empirical attention (Gunawan et al., 2023; Irman et al., 2021).

Figure 1 graphically represents the eight hypotheses of the study stated above, as well as the proposed hypothetical model, which includes the relationships between the study variables.

3. Materials and Methods

3.1. Study Design

The objective of this study is to identify whether inclusion and financial literacy influence business performance in entrepreneurs of Peru, Bolivia, and Colombia. To achieve the purpose of the study, an explanatory design based on the Structural Equation Model (SEM) was used (Ato et al., 2013; Bentler, 2006; Bernal, 2010).

3.2. Sample, Procedure, and Ethical Considerations of the Study

The study population consisted of entrepreneurs from Peru, Bolivia, and Colombia. Given the lack of an accessible and standardized sampling frame for entrepreneurs in these countries, a non-probability convenience sampling method was used, commonly employed in social science research when participants are selected based on their accessibility and willingness to participate. This approach is particularly appropriate for geographically dispersed and heterogeneous populations, such as that of entrepreneurs in Latin America.

Participants were identified and recruited through digital entrepreneurship ecosystems, including business-oriented social media groups (e.g., WhatsApp, Messenger, Twitter, Facebook communities, Telegram channels, and LinkedIn networks) and professional contacts. These platforms represent active communication environments where entrepreneurs interact, promote their businesses, and exchange information, thus constituting a relevant operational sampling frame for this study. Recruitment was conducted through direct invitations that included a brief explanation of the study and a link to the online questionnaire. Participation was voluntary and based on informed consent.

From a methodological standpoint, the operational sampling frame consisted of active entrepreneurs participating in digital communication networks who met the inclusion criteria (being at least 18 years old and running a business). While this approach is not based on a probabilistic sampling frame (i.e., a comprehensive list of all population units), it aligns with established research practices in contexts where such lists are unavailable or difficult to obtain. According to Malhotra (2004), convenience sampling allows for efficient data collection under real-world constraints, although it can introduce selection bias and limit generalizability.

The online questionnaire, which took approximately 8 min to complete, was administered via Google Forms over five months. To increase sample heterogeneity, efforts were made to contact participants from different countries and demographic backgrounds. Prior to data collection, ethical approval was obtained from the Ethics Committee of the Graduate School of the Universidad Unión Peruana (protocol code: 2023-CE-EPG-00070; approval date: 12 June 2023), and the study was conducted in accordance with the ethical principles of the Declaration of Helsinki. The introductory section of the questionnaire clearly described the purpose of the study and included informed consent for data processing. In this respect, the final sample consisted of 469 entrepreneurs from Peru, Bolivia, and Colombia, aged between 18 and 70 years, of whom 226 were women.

3.3. Measuring Instruments and Adaptation Process

Data collection was carried out through the use of standardized questionnaires on a representative sample, in this case, 469 entrepreneurs from Peru, Bolivia, and Colombia. The adaptation of the instruments followed a structured three-stage process to ensure cross-cultural validity. In the first stage, two independent bilingual experts (English-Spanish) performed a forward and back translation to verify conceptual equivalence (Brislin, 1986; Harkness et al., 2010). In the second stage, a pilot test was conducted with a subsample of 30 entrepreneurs per country (pilot sample= 90) to assess the comprehensibility of the items and the consistency of the responses, which led to minor adjustments in the wording. In the third stage, a panel of five experts in entrepreneurship and financial education evaluated the content validity of the adapted items, confirming their representativeness for the Latin American context.

The scales used in this study were validated in previous studies. To measure financial literacy, conceptualized as an entrepreneur’s ability to use financial knowledge and skills in business decisions (Tumba et al., 2022), the authors divided it into three dimensions: Cash Forecasting (FC), consisting of four items, referring to the assessment of a company’s cash flow, a key aspect of financial planning and decision-making; Bookkeeping (BK), consisting of 5 items, recognized as the systematic financial record-keeping that optimizes business performance; and Financial Education (FE), consisting of 4 items, understood as the mastery of financial principles and their use to improve decision-making. Furthermore, to measure business performance, the study by Tumba et al. (2022) defines performance as the achievement of a company’s objectives, which includes assessing asset growth, increases in business value, revenue, and profitability.

Furthermore, financial inclusion is defined as access to and use of formal financial products and services, which serves as a mechanism for reducing poverty and promoting sustainable economic development (Lontchi et al., 2022). This construct comprises the following dimensions: Access (AC), consisting of 5 items, referring to the availability of formal financial services such as bank accounts, access to credit, and the use of remittances through various channels; Barriers (BR), consisting of 3 items, defined as the obstacles that prevent an entrepreneur from accessing formal financial services, such as mistrust of the financial system, high costs, and the location of banking institutions; and Use (US), consisting of 5 items, understood as the frequency with which entrepreneurs use financial services, including the regular use of a debit and credit account

It should be noted that all three metrics have maintained adequate psychometric properties, indicating adequate internal consistency and reliability of the constructs. Additionally, all metrics were rated on a Likert-type response scale from 1 to 5, where 1 represents “strongly disagree” and 5 “strongly agree.”

3.4. Data Analysis

Partial Least Squares–Structural Equation Model (PLS-SEM) was used to carry out hypothesis testing, thus taking advantage of PLS-SEM as a comprehensive approach that allows multivariate statistical analysis to be carried out, thus obtaining information regarding the measurement and structure components in order to examine the relationships of the variables through a proposed model (Hair et al., 2010). In addition, PLS-SEM was used in this study because it facilitates the construction of theories (Hair et al., 2011).

All constructs were operationalized as reflective following the theoretical rationale that their indicators are manifestations of the underlying latent variable—that is, the construct causally produces its indicators, and interchangeability among indicators is assumed (Hair et al., 2019). Accordingly, Mode A (correlation-based) weighting was applied, as prescribed for reflective measurement in PLS-SEM (Ringle et al., 2020). A minimum of three indicators per construct was maintained throughout the model, consistent with psychometric guidelines to ensure adequate construct reliability (Hair et al., 2017). The choice of PLS-SEM over covariance-based SEM (CB-SEM) is further justified by the exploratory and predictive nature of the study, the non-normality of observed data distributions, and the presence of formative-adjacent constructs in the theoretical framework (Chin, 2010; Hair et al., 2011).

To assess potential common method bias, Harman’s single-factor test was applied to the full dataset (Podsakoff et al., 2003). The first unrotated factor accounted for less than 50% of the total variance explained, suggesting that common method variance does not constitute a serious threat to the validity of the results.

Additionally, to address the potential endogeneity arising from simultaneity between access to the financial system (AC) and business performance (BP), a Wu–Hausman endogeneity test was conducted following the two-stage procedure recommended by Zaefarian et al. (2017). In the first stage, AC was regressed on its theoretical antecedents (FE and BK) to obtain predicted residuals. In the second stage, these residuals were introduced as an auxiliary regressor in the BP equation. A significant coefficient for the residual term indicates the presence of endogeneity, which is reported and discussed in Section 4.1 and Section 5.4, respectively.

4. Results

4.1. Reliability and Validity Analysis

Supported by the PLS–SEM software version 4.0, the measurement and structural models were evaluated, obtaining the results of convergent validity and reliability of the construct, which exceeded the minimum indicators established by Chin (2010), Hair et al. (2011), and Kock (2015). As shown in

Table 2. Measurement model evaluation results.

Variable	Dimension	Code	Loading	Cronbach’s Alpha	CR	AVE
Financial Literacy (FL)	Financial Education (FE)	FE1	0.744	0.820	0.881	0.650
		FE2	0.821
		FE3	0.842
		FE4	0.813
	Cash Forecasting (FC)	FC1	0.818	0.792	0.864	0.615
		FC2	0.772
		FC3	0.811
		FC4	0.732
	Bookkeeping (BK)	BK1	0.772	0.855	0.896	0.634
		BK2	0.771
		BK3	0.779
		BK4	0.844
		BK5	0.812
Financial Inclusion (FI)	Access (AC)	AC1	0.777	0.818	0.874	0.582
		AC2	0.841
		AC3	0.654
		AC4	0.734
		AC5	0.795
	Use (US)	US1	0.672	0.812	0.866	0.565
		US2	0.763
		US3	0.745
		US4	0.766
		US5	0.806
	Barriers (BR)	BR1	0.907	0.884	0.928	0.811
		BR2	0.916
		BR3	0.879
Business Performance (BP)	Business Performance (BP)	BP1	0.799	0.858	0.898	0.638
		BP2	0.822
		BP3	0.816
		BP4	0.750
		BP5	0.803

, the loadings exceed 0.7; Cronbach’s alpha and Composite Reliability (CR) are greater than 0.7, and the AVE also meets the minimum value; that is, it is greater than 0.5.

It should be noted that the loading of indicator AC3 (λ = 0.654) falls marginally below the conventional threshold of 0.70 recommended by Hair et al. (2019). A sensitivity analysis was conducted by re-estimating the model with AC3 excluded; composite reliability (CR) and average variance extracted (AVE) for the Access construct remained above the minimum thresholds (CR > 0.70; AVE > 0.50), confirming adequate construct validity. AC3 was retained on theoretical grounds, as it captures a conceptually distinct and empirically relevant facet of access to the financial system that is not redundant with the remaining indicators.

After having found compliance with each of the indicators, discriminant validity was carried out. As shown in

Table 3. Discriminant validity.

Construct	AC	BK	BP	BR	FC	FE	US
AC	0.763
BK	0.444	0.796
BP	0.383	0.320	0.798
BR	0.123	0.078	−0.140	0.901
FC	0.431	0.665	0.346	0.070	0.784
FE	0.448	0.576	0.297	0.122	0.621	0.806
US	0.752	0.400	0.400	0.009	0.411	0.364	0.752

Note. Access (AC), Bookkeeping (BK), Business Performance (BP), Barriers (BR), Cash Forecasting (FC), Financial Education (FE), and Use (US). The square root of AVEs is shown diagonally in bold.

, all constructs are greater than the correlation with the others, suggesting that the proposed model has acceptable discriminant validity.

4.2. Structural Model Evaluation

The path coefficients and the R² coefficient value were verified and evaluated, finding that each of the proposed hypotheses has a causal link in the structural model, this fact constituting the relationship between the constructs, whose p-value indicators constitute the decision to accept or reject the research hypotheses, as shown in

Table 4. Hypothesis testing.

H	Hypothesis	Pat Coefficient	T Statistics	p Values	Decision
H1	FC -> BP	0.134	2.488	0.013	Accepted
H2	BK -> BP	0.069	1.284	0.199	Rejected
H3	FE -> BP	0.062	1.064	0.287	Rejected
H4	FE -> AC	0.288	5.478	0.000	Accepted
H5	BK -> AC	0.278	5.232	0.000	Accepted
H6	AC -> BP	0.154	2.067	0.039	Accepted
H7	US -> BP	0.180	2.625	0.009	Accepted
H8	BR -> BP	−0.183	5.117	0.000	Accepted

.

Prior to the structural model evaluation, a Wu–Hausman endogeneity test was conducted to assess potential simultaneity bias between access to the financial system (AC) and business performance (BP). The first-stage regression of AC on its theoretical antecedents (FE and BK) yielded a significant model (R² = 0.247, F (2, 515) = 84.28, p < 0.001), confirming the relevance of the instruments. In the second stage, the residuals were introduced into the BP equation as an auxiliary variable. The significant coefficient of the residual term (β = −0.165, t = −2.86, p = 0.004) confirms the presence of simultaneity between AC and BP, consistent with the cross-sectional nature of the data. A supplementary reverse regression analysis further showed that BP significantly predicts AC beyond FE and BK (β = 0.299, p < 0.001), indicating that the relationship between the two constructs may be bidirectional. This limitation is acknowledged and discussed in Section 5.4.

In this study, the path coefficients, T statistics and p value were evaluated, obtaining evidence that there is a positive effect of FC on BP (H1); of FE over AC (H4); of BK over AC (H5); of AC over BP (H6); of US on BP (H7); of BR over BP (H8). Nevertheless, the results demonstrate sufficient evidence to reject the effect of BK on BP (H2) and FE on BP (H3), as shown in Table 4 and Figure 2.

5. Discussion and Conclusions

5.1. Discussion of the Results

The purpose of this research is to identify whether inclusion and financial literacy influence business performance in entrepreneurs of Peru, Bolivia, and Colombia. In particular, when it comes to investment, several studies point to the importance of liquidity for organizational performance. The findings of this study confirmed the first hypothesis that Cash Forecasting maintains a positive effect on business performance (β = 0.134, p = 0.013), which coincides with previous studies that maintain that these are important to mitigate the inconveniences generated in treasury decisions, which represents proper management and organizational effectiveness (Hiremath et al., 2025; Trinca & Marcão, 2025; Víghová & Štangová, 2021). Similarly, previous studies reported a significant association between cash forecasting and business performance, with coefficients of 0.356 and 0.206 (Knudsen et al., 2023; Lim & Jeong, 2025). The difference between the two can be explained by the characteristics of the Latin American context, where the level of informality and access to the formal financial system determine an entrepreneur’s capabilities. This means that, although the contribution of one variable over another is significant, this effect is mitigated among entrepreneurs in Peru, Bolivia, and Colombia; consequently, cash forecasting needs to be complemented by increased access to formal financial institutions in order to maximize its impact.

However, this study shows that bookkeeping does not affect business performance (β = 0.069, p = 0.199); this result served as the basis for rejecting Hypothesis 2. This finding is consistent with previous research indicating that effective accounting practices improve business performance, provided there is financial oversight and operational efficiency (Hiremath et al., 2025), which means that there is no direct link to business performance. This is also reaffirmed by (Ajibade & Mutula, 2019; Borromeo et al., 2024), who argue that keeping organized records does not automatically lead to better results, but rather serves as a starting point that needs to be supplemented. Furthermore, it has been found that financial education does not have an impact on business performance (β = 0.062, p = 0.287). To support these findings, the literature includes research suggesting that financial education improves knowledge sharing and has an indirect effect on organizational performance (Meyliqulova et al., 2025; Munawar, 2025). In contrast, other studies link these two variables, making it clear that adequate financial education promotes efficiency, improves long-term investments, and enhances overall business performance (Aripin & Zuhriyah, 2025; Ying & He, 2020). This discrepancy can be explained by the fact that the study population consisted of entrepreneurs from three Latin American countries, where informality is a constant challenge and where financial literacy, on its own, is not a determining factor in business performance.

Similarly, this study has revealed that although financial literacy does not directly predict business performance, it does predict access to the financial system (β = 0.288, p = 0.00); this dynamic between the variables is supported empirically by other studies that indicate that, although startups are exposed to serious financial constraints, when adequate financial education is available, the development of skills emerges that enables them to conduct financing assessments and generate adequate business growth (Ngek, 2016; Meyliqulova et al., 2025). Similarly, when analyzing a similar emerging economy (Indonesia), finding that financial literacy accounts for 64.2% of business sustainability in startups (Aripin & Zuhriyah, 2025); however, when access to external financing increases, this effect weakens; this means that, in environments where there is moderate availability of capital, entrepreneurs prefer to rely on external resources rather than their own skills, which provides an additional explanation for the previous hypothesis, confirming that in Latin American entrepreneurial environments, financial education does not predict business performance; however, access to the system does become a direct driver.

Similarly, it has been shown that bookkeeping has a positive effect on access to the financial system (β = 0.278, p = 0.00), making it a financial accounting credential, as it helps demonstrate the business’s creditworthiness; this finding is consistent with the research by (Al Astal & Qayssar, 2025) who maintain that bookkeeping plays a key role in sound governance and financial performance, thereby improving access to credit and other financial services. For Borromeo et al. (2024), these findings reinforce the conclusions of this study by noting that bookkeeping fosters trust and facilitates access to financial services; in this regard, maintaining sound bookkeeping represents a significant competitive advantage for entrepreneurs seeking access to institutional financing (Anthanasius & Opperman, 2023).

Similarly, the dimensions of financial inclusion were analyzed, revealing that they influence business performance, thereby confirming H6, H7, and H8. Access to the financial system, use of the financial system, and barriers to the financial system had significant effects on business performance (β = 0.154, p = 0.039; β = 0.180, p = 0.009; β = −0.183, p = 0.00), respectively, with the use of the financial system having the greatest impact. A study supporting these findings states that access to financing allows entrepreneurs to acquire the necessary resources, such as working capital, technical inputs, and funding for growth initiatives like research and development, production diversification, and advertising, with the strategic use of these resources being the factor with the greatest impact on business performance (Cheratian et al., 2024). Despite their benefits, many startups face significant barriers to accessing financing, such as high interest rates, a lack of collateral, and imperfections in the financial market, which can hinder their growth and profitability. Smaller and newer companies, in particular, face greater difficulties in accessing financing compared to larger or more established firms, which limits their ability to compete and grow (Mohammed, 2022; Rusu & Roman, 2022; Tóth et al., 2025).

Taken together, these findings confirm the study’s central proposition that financial inclusion and financial literacy are not merely contextual factors but strategic capabilities that directly enhance business performance.

5.2. Theoretical Implications

The findings of this study enrich existing theories that link financial capabilities with the competitiveness and sustainability of ventures. Assumptions about the facilitating role of financial literacy and formal financial inclusion in the management and performance of nascent businesses are validated. Likewise, the conceptual understanding of these factors in the Latin American context is expanded, contributing to regional knowledge about entrepreneurship. The confirmation that greater financial literacy and access to services from the formal financial system are related to improvements in business metrics highlights the importance, at a theoretical level, of incorporating comprehensive financial training within the strategies to support the creation and consolidation of ventures in stages early. In short, the theoretical assumption is reinforced that a solid understanding of finance is essential to enhance the effective management of companies and their sustained growth.

5.3. Practical Implications

In practical terms, this study underscores the need for government programs and initiatives to promote entrepreneurship in Latin America, which should integrate financial literacy tools and facilitate access to formal credit as central pillars. These financial management training programs should address the managerial knowledge gaps prevalent among entrepreneurs in Peru, Colombia, and Bolivia. In this regard, it is believed that incorporating financial literacy courses into the school curriculum could be an effective strategy by including modules on saving, budgeting, credit, investment, and financial risk. Furthermore, the development of national financial literacy programs for adults and national financial culture campaigns could generate positive, long-term, and sustainable results.

On the contrary, in countries like Peru, Bolivia, and Colombia, where there is a high proportion of rural population, informal employment, and digital divides, local/national governments and financial institutions can implement various structural strategies to expand entrepreneurs’ access to the financial system. Some of these measures, such as the expansion of digital banking and mobile financial services, the promotion of banking correspondents and financial agents, and the simplification of requirements for opening bank accounts, could overcome some of the main obstacles to financial inclusion in these emerging countries.

In turn, entrepreneurs in the countries studied could leverage the FinTech ecosystem, as there is fertile ground for designing FinTech solutions that promote financial inclusion for this important economic segment. FinTech allows for the provision of microloans, insurance, and low-cost digital payments. For their part, local and national government entities could design favorable regulatory frameworks for FinTech, regulatory sandboxes, and integration with national payment systems. Finally, the various organizations that support entrepreneurship in Latin America must integrate components to strengthen financial and credit skills into their training and technical assistance programs.

5.4. Contributions and Limitations

This study enriches the scientific literature by identifying the link between business performance, inclusion, and financial literacy among entrepreneurs in Latin America. However, it presents certain limitations that must be taken into consideration. For example, no prior analysis was conducted to identify the level of financial literacy according to the participants’ academic background. Therefore, it is proposed that future research select a sample with characteristics that allow for this type of analysis without greater difficulty, and that the analyses allow for comparisons according to the participants’ educational level, area of study, or business experience. Furthermore, given that this study focused on three Latin American countries (Peru, Bolivia, and Colombia), future studies could broaden the geographic and sectoral diversity of the sample to strengthen the external validity of the findings and offer a more comprehensive understanding of the role of inclusion and financial literacy in business performance in Latin American contexts.

While this study supports the fundamental role of financial inclusion, it does not distinguish between those who have participated in financial education programs and their commitment to implementing the lessons learned. This lack of information introduces a research bias that limits a complete understanding of other factors that may be linked to business performance, financial inclusion, and literacy. Therefore, future research should employ quasi-experimental designs that allow for comparisons between groups of entrepreneurs who have participated in financial literacy programs and those who have not received such training. This would allow for a more accurate assessment of the effect of these interventions on variables such as accounting management, financial planning, and business performance. Furthermore, it would be pertinent to incorporate longitudinal measurements to observe whether the sustained application of acquired knowledge translates into progressive improvements in access to financial services, economic decision-making, and the long-term sustainability of businesses. Finally, integrating additional variables related to the intensity of use of financial tools, prior business experience, or the institutional environment could contribute to a more comprehensive understanding of the mechanisms that explain the links between financial literacy, financial inclusion, and business performance.

Although the indicators of the proposed model are acceptable, the results could not be generalized due to certain limitations; for example, the characteristics of the sample are not homogeneous, so the perspective gap between the countries under study could not be identified. Furthermore, since the questionnaire was sent online, it is likely that entrepreneurs with a lack of Internet access were excluded, which could represent a bias in the study because that demographic group that could contribute to this study would not have been surveyed.

Another important limitation lies in the non-probability convenience sampling strategy, which limits external validity. The three included countries (Peru, Bolivia, and Colombia) exhibit significant institutional heterogeneity in terms of regulatory environments, banking infrastructure, and entrepreneurial ecosystems, which restricts the direct generalizability of the findings to other Latin American contexts. Future research should employ stratified probability sampling across a broader range of countries to strengthen the representativeness of the results (Hair et al., 2019; Malhotra, 2004). Methodologies such as these would not only facilitate data collection but also enable cross-cultural comparisons by including a greater variety of populations in different countries of the region.

Furthermore, all participants in the study identified themselves as entrepreneurs; however, the researchers do not know the type of entrepreneurship they engaged in. This lack of information also prevents the generalization of the results across different types of entrepreneurships. These limitations and the findings presented suggest that future research should analyze the entrepreneurial culture in both countries to gain a deeper understanding of the financial practices of their businesses.

A key limitation concerns the potential endogeneity between access to the financial system (AC) and business performance (BP). The Wu–Hausman test confirmed simultaneity (β = −0.165, t = −2.86, p = 0.004), and a reverse regression showed that BP also predicts AC (β = 0.299, p < 0.001), suggesting a bidirectional relationship inherent to the cross-sectional design. Although H6 is theoretically grounded in Financial Inclusion Theory (GPFI, 2011; World Bank, 2014), a 2SLS correction was not feasible given that the instruments (FE and BK) are themselves predictors of BP, violating the exclusion restriction. Future research should employ panel data or longitudinal designs to establish causal ordering between these constructs (Bascle, 2008; Zaefarian et al., 2017).