Relationship between financial stress and financial well-being of micro and small business owners: Evidence from India
Micro and small businesses financially suffered due to COVID-19 in India. This financial suffering created financial stress among them and deteriorated their financial well-being. However, micro and small business owners exhibit financial resilience by bouncing back to regular business activities th...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2022-12-01
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| Series: | Problems and Perspectives in Management |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17407/PPM_2022_04_Ravikumar.pdf |
| _version_ | 1797938311477592064 |
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| author | Thangaraj Ravikumar Mali Sriram Nagalingam Kannan Issac Elias Vinita Seshadri |
| author_facet | Thangaraj Ravikumar Mali Sriram Nagalingam Kannan Issac Elias Vinita Seshadri |
| author_sort | Thangaraj Ravikumar |
| collection | DOAJ |
| description | Micro and small businesses financially suffered due to COVID-19 in India. This financial suffering created financial stress among them and deteriorated their financial well-being. However, micro and small business owners exhibit financial resilience by bouncing back to regular business activities through their hope, optimism, and self-efficacy, which are the components of positive psychological capital. This study analyzes the relationship between financial stress and financial well-being of micro and small firm owners keeping financial resilience as a mediator and positive psychological capital as a moderator in the mediation. This descriptive analysis employed a survey method to collect primary data using the interview method. The interview method was used as most micro and small business owners are comfortable with interaction rather than filling out the questionnaires due to the language barrier. The sample size is 384 respondents, as per Krejcie and Morgan’s formula. The mean scores indicate a moderate degree of financial stress (2.354), financial resilience (2.623), and financial well-being (2.637). The level of financial stress differs based on the respondents’ gender. Financial stress is more among female business owners (2.504) than their male counterparts (2.265).Further, business owners who earn more have a higher level of financial resilience (2.985), psychological capital (2.951), and financial well-being (2.711). Financial stress significantly impacts financial well-being (28.4%). Financial resilience has a partial mediation effect (65%) on financial stress and financial well-being. Finally, psychological capital moderates indirect relationships among financial stress, financial resilience, and financial well-being. |
| first_indexed | 2024-04-10T18:57:43Z |
| format | Article |
| id | doaj.art-3ecbc7a4fb4947809fd1253729370d78 |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-04-10T18:57:43Z |
| publishDate | 2022-12-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-3ecbc7a4fb4947809fd1253729370d782023-01-31T14:16:28ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672022-12-0120430631910.21511/ppm.20(4).2022.2317407Relationship between financial stress and financial well-being of micro and small business owners: Evidence from IndiaThangaraj Ravikumar0https://orcid.org/0000-0001-6879-2516Mali Sriram1https://orcid.org/0000-0002-8353-1928Nagalingam Kannan2https://orcid.org/0000-0002-2245-1457Issac Elias3https://orcid.org/0000-0002-4206-2600Vinita Seshadri4https://orcid.org/0000-0002-0552-1943PhD, Associate Professor, School of Business and Management, CHRIST (Deemed to be University)Ph.D., Associate Professor, School of Business and Management, Christ UniversityPh.D., Professor, School of Management Studies, Sathyabama Institute of Science and Technology (Deemed University)MPhil, Associate Professor, School of Business and Management, CHRIST (Deemed University)Ph.D., Associate Professor, School of Business and Management, CHRIST (Deemed University)Micro and small businesses financially suffered due to COVID-19 in India. This financial suffering created financial stress among them and deteriorated their financial well-being. However, micro and small business owners exhibit financial resilience by bouncing back to regular business activities through their hope, optimism, and self-efficacy, which are the components of positive psychological capital. This study analyzes the relationship between financial stress and financial well-being of micro and small firm owners keeping financial resilience as a mediator and positive psychological capital as a moderator in the mediation. This descriptive analysis employed a survey method to collect primary data using the interview method. The interview method was used as most micro and small business owners are comfortable with interaction rather than filling out the questionnaires due to the language barrier. The sample size is 384 respondents, as per Krejcie and Morgan’s formula. The mean scores indicate a moderate degree of financial stress (2.354), financial resilience (2.623), and financial well-being (2.637). The level of financial stress differs based on the respondents’ gender. Financial stress is more among female business owners (2.504) than their male counterparts (2.265).Further, business owners who earn more have a higher level of financial resilience (2.985), psychological capital (2.951), and financial well-being (2.711). Financial stress significantly impacts financial well-being (28.4%). Financial resilience has a partial mediation effect (65%) on financial stress and financial well-being. Finally, psychological capital moderates indirect relationships among financial stress, financial resilience, and financial well-being.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17407/PPM_2022_04_Ravikumar.pdfbehavioral financefinancial welfarepersonal financepersonal well-beingpsychological factors |
| spellingShingle | Thangaraj Ravikumar Mali Sriram Nagalingam Kannan Issac Elias Vinita Seshadri Relationship between financial stress and financial well-being of micro and small business owners: Evidence from India Problems and Perspectives in Management behavioral finance financial welfare personal finance personal well-being psychological factors |
| title | Relationship between financial stress and financial well-being of micro and small business owners: Evidence from India |
| title_full | Relationship between financial stress and financial well-being of micro and small business owners: Evidence from India |
| title_fullStr | Relationship between financial stress and financial well-being of micro and small business owners: Evidence from India |
| title_full_unstemmed | Relationship between financial stress and financial well-being of micro and small business owners: Evidence from India |
| title_short | Relationship between financial stress and financial well-being of micro and small business owners: Evidence from India |
| title_sort | relationship between financial stress and financial well being of micro and small business owners evidence from india |
| topic | behavioral finance financial welfare personal finance personal well-being psychological factors |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17407/PPM_2022_04_Ravikumar.pdf |
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