Abstract:
The lack of financial capability has become a contemporary issue around the
globe. Currently there is a high level of individual indebtedness, an increasing
trend of complexity in the financial market, rapidly changing financial landscape,
and increased individual responsibility, specifically the growing need of financial
capability. The main objective of this study is to critically evaluate the literature
on financial capability. The study identified different aspects and different
measures of financial capability, levels of financial capability of small and medium
entrepreneurs, consequences of financial incapability and methods of improving
financial capability. The study revealed financial capability can be improved from
tailor-made training programs and workshops. Also, it is necessary to follow up
the individual’s acts and their behavior to identify whether their performances
changed according to the advice given. Finally, the financially capable individual
has the capacity to participate more effectively in society and contribute
significantly to the economic growth of the country.
