Authors: Sheevun Di O. Guliman and Arnel Onesimo O. Uy

Year: 2019, Volume 28 No. 3
Pages: 1–10


This study examines the effects of the three proposed financial sophistication dimensions, that is, (1) knowledge; (2) behavior, and (3) decision-making style, on the triple bottom line (TBL) framework. Based on a sample of 384 micro-entrepreneurs across the National Capital Region (NCR) in the Philippines, results of PLS-SEM showed that the financial decision-making style had a positive effect on all areas of the TBL. Financial behavior showed to have positive effects on the economic and environmental aspects while financial knowledge only had a positive effect on the economic bottom line. Lastly, the relationship between female micro-entrepreneurs’ financial decision-making style and the economic bottom line was found to be significantly higher than that of male micro-entrepreneurs. Implications of these findings were also discussed.

Keywords: microenterprises; financial sophistication; financial literacy, triple bottom line; decision-making style, PLS-SEM
JEL Classifications: G41; I25; L26