Financial education as a fundamental pillar of entrepreneurial success

Abstract

Financial education has become a fundamental pillar for entrepreneurial success, particularly in the context of micro, small, and medium-sized enterprises (MSMEs), which represent a key driver of economic development in Latin America. This article aims to analyze the importance of financial education in the development, sustainability, and performance of entrepreneurial initiatives, emphasizing  its   influence on  decision-making, financial  planning, resource  management,  and access to financing. The study adopts a qualitative, descriptive, and documentary research approach, based on the analysis of academic literature, reports from international organizations, and institutional documents related to financial education and entrepreneurship. The findings indicate that an adequate level of financial literacy strengthens essential competencies such as planning, budget control, risk assessment, and resource optimization, which are decisive for business stability and growth. Moreover, financial education contributes to risk mitigation, improves business sustainability, and enhances overall organizational performance. However, significant challenges remain, including educational barriers, difficulties in applying financial knowledge in practice, and contextual economic and cultural constraints. In conclusion, although financial education does not guarantee entrepreneurial success on its own, it constitutes a strategic and indispensable element for responsible resource management, informed decision-making, and the long-term sustainability of entrepreneurial ventures.