Financial inclusion and sustainability of women-owned enterprises in Kibera informal settlement, moderating role of financial literacy and entrepreneurship skills

Abstract

This study examined the relationship between financial inclusion and the sustainability of women-owned enterprises in Kibera, Nairobi moderated by financial literacy and entrepreneurship skills. Findings indicate that entrepreneurship skills have the strongest positive impact on business sustainability while financial access, depth and quality also significantly support resilience, survival, growth and profitability. In contrast, financial usage, digital literacy and financial management skills alone showed no significant effect. Qualitative data revealed low adoption of budgeting, limited strategic planning and minimal innovation, which restrict business growth despite access to financial resources. In conclusion, sustainable women-owned enterprises in informal settlements depend not only on access to quality and comprehensive finance but on the effective application of entrepreneurial and financial competencies. Inclusive financial services enhance sustainability when combined with practical business skills and strategic practices. Financial inclusion and literacy without actionable application is insufficient for sustainability. The study recommends increasing awareness of budgeting, strategic planning, and innovation as essential business practices. Financial literacy initiatives should be integrated with entrepreneurial skill development to ensure knowledge translates into action. Policy interventions should emphasize not just access to financial services but also their quality and depth, tailored to the challenges of women entrepreneurs in marginalized urban contexts. These measures can strengthen the resilience, competitiveness and sustainability of women-led informal enterprises, supporting broader economic empowerment and inclusive development.