Journal Press India^®

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Kerala, celebrated for its elevated literacy achievements and progressive gender friendly policies, remains burdened by disparities in economic empowerment among women at the grass-root level. This work examines this disparity by analysing the financial literacy of women entrepreneurs in the traditional, women-led Murukku cottage industry in Karippode, Palakkad. Data collected from 68 entrepreneurs portrays an extremely low overall Financial Literacy Index score (1.89), substantiated by low scores in four core dimensions financial knowledge (2.23), financial behaviour (1.96), financial attitude (1.76), and financial capability (1.63). A positive correlation with sales revenue and financial literacy (r = 0.289, p = 0.017), is noticed but it has no substantial effect on reducing debt. This indicates that while initiatives like Kudumbashree have improved access to credit, they have inadequately built core economic capabilities of the respondents. The findings demonstrate that flaws in debt management and financial planning intensify vulnerability, amplify shocks, and impede growth. The study highlight the paramount need to modify financial education programs to go beyond basic credit access and cultivate practical skills in debt management, risk management, and comprehensive planning, thereby ensuring stable business growth and fortitude in this financially vulnerable sector.

Keywords

Financial literacy; Women entrepreneurs; Debt management; Financial literacy index; Rural development

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