| Abstract: |
The lack of financial literacy in SMEs is one of the main obstacles to SMEs
finance (Zavatta, 2008). This problem is even greater in developing countries
where the informal economy, the low levels of education and the low
bancarization rates are known to be high in this region. One of the relevant
trends in SME Finance are innovative financial instruments in "capacity
building" mainly financial literacy campaigns (or financial education
offerings) from financial institutions (Imanbaeva et al., 2017). The main
research question of the present study is: Do financial literacy campaigns (or
financial educational offerings) provide an adequate level of financial
education for SMEs in Colombia? This research project was carried out applying
a qualitative methodology. The primary data has been obtained through
different types of 11 indepth interviews from the perspective of the financial
institutions and also from Chambers of Commerce that provide the trainings.
From the assessment and analysis of the financial literacy campaigns, the main
results show that the programs that are designed for rural areas of the
country do not have all the necessary components that the OECD recommends for
a person to be considered financially educated. The financial education
offerings carried out in the big cities (offered by the Banco de Bogota, the
Chamber of Commerce of Bogota and Cali) provide SMEs with key mechanisms in
financial education of great value, according with the components that the
OECD recommends. Other important aspects from the results show that the
financial education trainings are very short, so that it is not possible to
cover all the required topics from the OECD to consider someone financial
educated. Furthermore, several participants of the financial trainings are not
able to finish due to her/his responsibilities as entrepreneur. Besides, for
most of the offerings, there is not an impact evaluation (post-evaluation)
about the effect of the trainings regarding the application of the knowledge
in financial matters. |