Financial Literacy and Psychological Well-being: Mediation Effect of Sustainable Development for Women-led Microenterprises using PLS-SEM

Entrepreneurship, Financial Literacy, Knowledge Based-view, Microenterprises, Psychological wellbeing, Sustainable Development, Women Entrepreneurs.

This study shows the predictive analysis between the interrelated constructs i.e. Financial Literacy, Psychological Well-being, & Sustainable Development for Women-led Microenterprises of the study to measure the influence on Entrepreneurial Success among women-led microenterprises in Uttar Pradesh. The study adopts a quantitative research design based on primary survey data collected from women entrepreneurs. Partial Least Square Structural Equation Modelling (PLS-SEM) is employed using Smart PLS 4 to examine the direct and indirect (mediating) relationships among the proposed constructs. The study further incorporated PLS predict and Importance- Performance Map Analysis (IPMA) to strengthen predictive assessment and strategic interpretation of the findings. The empirical results reveal that both direct (FL, PWB & SDWE) and mediating effect (SDWE) positively influence Entrepreneurial Success (ES). However, the predictive effect of SDWE is much stronger than ES. Further, the structural model indicates a robust predictive relevance for FL and PWB. The IPMA findings also identify PWB as the most strategically significant construct requiring continuous institutional and policy attention. The study makes a theoretical contribution by integrating existing RBV, KBV, SCT & COR theories in one sustaining resource model. Also, study provides important implications for policymakers, governance systems, incubator centers, and financial institutions for enhancing women-led microenterprises in Uttar Pradesh.