Significance of Financial Literacy among Women Entrepreneur on Halal Business

Abstract

Muslim women have created a unique space for them in the economy by advocating halal entrepreneurship. In Muslim minority countries, Muslim women are struggling to gain acknowledgment from society and face multiple challenges, including limitations in performing halal business activities. Besides the gender gap that is prevalent globally, Muslim women often engage in business due to the lack of job opportunities. Women with limited knowledge about business are running their businesses based on their informal managerial experience and little understanding of financial literacy.Purpose of study: This paper identifies the critical decisions of women entrepreneurs in doing halal business and the significance of financial literacy for business performance.Methodology: Library research was used to critically review the literature on the behavioral factors influencing woman entrepreneurs in doing the halal business and the significance of financial literacy on business performance.Findings: The study found that the significant problems faced by Muslim women entrepreneurs were the lack of access to capital and finance, business management skills, business operation and government regulations and policies. The understanding of financial literacy among entrepreneurs has a positive impact on successful business performance.Keywords: Halal business, financial literacy, women entrepreneur