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Title:
The Critical Role of Financial Literacy in Navigating Challenges Faced by Lebanese SMEs

Authors:
Riad Makdissi and Selim Mekdessi

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Riad Makdissi1 and Selim Mekdessi2
1,2. Faculty of Economics and Business Administration, Lebanese University, Lebanon

MLA 8
Makdissi, Riad, and Selim Mekdessi. "The Critical Role of Financial Literacy in Navigating Challenges Faced by Lebanese SMEs." Int. j. of Social Science and Economic Research, vol. 9, no. 10, Oct. 2024, pp. 4753-4767, doi.org/10.46609/IJSSER.2024.v09i10.045. Accessed Oct. 2024.
APA 6
Makdissi, R., & Mekdessi, S. (2024, October). The Critical Role of Financial Literacy in Navigating Challenges Faced by Lebanese SMEs. Int. j. of Social Science and Economic Research, 9(10), 4753-4767. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i10.045
Chicago
Makdissi, Riad, and Selim Mekdessi. "The Critical Role of Financial Literacy in Navigating Challenges Faced by Lebanese SMEs." Int. j. of Social Science and Economic Research 9, no. 10 (October 2024), 4753-4767. Accessed October, 2024. https://doi.org/10.46609/IJSSER.2024.v09i10.045.

References

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[3] . Makdissi, Riad & Nehme, Anita & Chahine, Rachelle. (2020). The Influence of Financial Culture on SME’s Financial Performance. Journal of Financial Risk Management. 09. 1-22. 10.4236/jfrm.2020.91001.
[4] .Kamel, Cesar & Kaspard, Jeanne & Khalil, Fleur. (2023). The Information System of Lebanese Exporting SMEs. Journal of Law and Sustainable Development. 11. e1212. 10.55908/sdgs.v11i6.1212.
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[11] . Makdissi, Riad & Chahine, Giovanni & Mekdessi, Selim. (2022). Financial resilience of family-owned businesses to crises in Lebanon. 24. 24-32. 10.9790/487X-2412042432.
[12] . Elia, Jean & Jabbour Al Maalouf, Nada & Eid, Maged & Sawaya, Chadia. (2024). The Impact of the Lebanese Economic Crisis on Consumer Behavior. Evolutionary Studies in Imaginative Culture. 1287–1304. 10.70082/esiculture.vi.1281.
[13] . Abdallah, Wael & Harraf, Arezou & Ghura, Hasan & Abrar, Maryam. (2024). Financial literacy and small and medium enterprises performance: the moderating role of financial access. Journal of Financial Reporting and Accounting. 10.1108/JFRA-06-2024-0337.
[14] . Akhtar, Shamim & Ashraf, Naheed & Alvi, Muhammad & Naseem, Muhammad. (2023). Examining the Interplay of Access to Finance, Financial Literacy, and SMEs Growth: A Comprehensive Analysis. NICE Research Journal. 15. 35. 10.51239/nrjss.v16i1.401.
[15] . Eniola, Anthony & Entebang, Harry & Law, Kyra. (2015). Financial literacy and SME firm performance. International Journal of Research Studies in Management. 5. 10.5861/ijrsm.2015.1304.
[16] . Lusardi, Annamaria, and Olivia Mitchell (2008), Planning and Financial Literacy: How Do Women Fare? American Economic Review 98(2), pp. 413-417.
[17] . Makdissi, Riad & Arja, Nour & Mekdessi, Selim. (2023). Surviving And Thriving: Financial Behavior Of Entrepreneurs In Crisis-Ridden Lebanon. 7-21. 10.9790/5933-1406010721.
[18] . Ogunwale, Olurotimi & Isibor, Areghan & Alalade, Samson & Omosebi, Tolulope. (2024). Use of Technology and Financial Literacy on SME Practices and Performance. International Journal of Social Sciences and Management Review. 07. 234-243. 10.37602/IJSSMR.2024.7519.
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[22] . Makdissi, Riad & Kaddour, Ziad & Mekdessi, Selim. (2023). Impact of funding difficulties on the Sustainability of Lebanese Non-Governmental Organizations. IOSR Journal of Economics and Finance. 13. 10-24. 10.9790/5933-1306041024.
[23] . Riad Makdissi, Anita Nehme, Massaad Nehme. Credit Risk Management, case study of Bank of Beirut - Lebanon. IOSR Journal of economics and Finance (IOSR-JEF), 11(1), 2020, pp. 47-54.
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[25] . Mekdessi, Selim & Makdessi, Riad & Makdissi, Riad. (2016). The Default Risk Management in Financial Institutions: Case of the Credit Risk in Lebanese MFIs.
[26] . Adepoju, Omoseni & Nwulu, Nnamdi & David, Love. (2024). Introduction to Risk Management and Current Risk Management Framework. 10.1201/9781003522102-4.
[27] . Makdissi, Riad & Yaacoub, Celine & Mekdessi, Selim. (2023). Financial Resilience In Mount-Lebanon Hotel Sector: Navigating Crisis-Driven Challenges. IOSR Journal of Business and Management. 25. 31-38. 10.9790/487X-2511023138.
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[29] . Makdissi, Riad & Taleb, Dana & Mekdessi, Selim. (2023). Lebanon's Financial Crisis And Workforce Vulnerability: A Study Of Arbitrary Employee Dismissals In Smes. IOSR Journal of Economics and Finance. 14. 32-37. 10.9790/5933-1406013237.
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[31] . Makdissi, Riad & Attal, Levenia & Mekdessi, Selim (2023). Resilience And Adaptation: Navigating Economic Crisis In Lebanon -Transformation Of Commercial Company Into Industrial Entity During Uncertainty. IOSR Journal of Business and Management (IOSR-JBM)e-ISSN:2278-487X, p-ISSN: 2319-7668. Volume 25, Issue 8. Ser. 5 (August. 2023), PP 62-76
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ABSTRACT:
SMEs are vital to the Lebanese economy, contributing significantly to employment, innovation, and regional development[1]. However, the persistent challenges posed by Lebanon’s ongoing political instability, economic crisis, and financial volatility have disproportionately affected SMEs[2]. In this context, financial literacy emerges as a key factor that can empower SME owners to make informed decisions, access critical financing, manage risks, and ensure longterm growth and sustainability[3] . This study investigates the critical role of financial literacy in helping Lebanese SMEs navigate these challenges. Using a quantitative approach, data were collected from a sample of 260 SME owners and managers. The research explores how financial literacy influences key business outcomes, such as access to finance, risk management, and strategic decision-making. The findings reveal that higher levels of financial literacy significantly enhance SMEs' ability to secure funding, implement effective risk management strategies, and sustain growth despite external economic pressures. Financially literate SMEs are better equipped to engage with financial institutions, diversify their financial portfolios, and mitigate the adverse effects of currency fluctuations and inflation. The study concludes that promoting financial literacy among SME owners and managers should be a priority in Lebanon’s economic recovery efforts. Targeted financial education programs, supported by government and financial institutions, could enhance SME resilience, reduce failure rates, and contribute to a more stable economic environment. This research highlights the need for comprehensive financial literacy initiatives that address the specific challenges faced by SMEs in Lebanon, ultimately enabling them to thrive in a complex and uncertain economic landscape.

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