FINANCIAL LITERACY AND MSME RESILIENCE: A POST-PANDEMIC STUDY OF WOMEN ENTREPRENEURS IN LAGOS AND ONDO STATES, NIGERIA

Abstract

The COVID-19 pandemic exposed structural vulnerabilities within Nigeria’s micro, small, and medium enterprise (MSME) sector, with women-owned businesses disproportionately affected due to limited financial capacity, digital exclusion, and restricted access to formal support systems. This study examines the influence of financial literacy on the post-pandemic resilience of women-owned MSMEs in Lagos and Ondo States, Nigeria. Adopting a convergent mixed-methods design, data were collected from 400 women entrepreneurs using structured questionnaires, complemented by 12 in-depth interviews and 4 focus group discussions with key stakeholders. Financial literacy was conceptualized across dimensions including budgeting, saving, credit management, and digital finance, while resilience was measured through business survival, adaptation, and recovery indicators. Quantitative data were analyzed using regression techniques, while qualitative data were thematically analyzed to provide contextual insights. Findings reveal that financial literacy significantly predicts MSME resilience (β = 0.57, p < 0.001), with digitally literate entrepreneurs demonstrating higher adaptive capacity and recovery rates. The study also identifies key coping strategies such as savings mobilization, digital platform adoption, and participation in informal financial networks. However, disparities exist between urban and rural contexts, with women in Ondo State facing greater barriers to financial inclusion and digital adoption. The study concludes that financial literacy is a critical determinant of MSME resilience and recommends targeted financial education, gender-responsive financial inclusion policies, and digital capacity-building interventions. The findings contribute to advancing inclusive economic recovery strategies and provide practical insights for policymakers, development partners, and financial institutions.