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Abstract
Micro and small enterprises (MSEs) play a key role in
job creation, innovation, and economic growth. However, they are also the businesses with the least resilience to adverse situations and face greater difficulties in accessing insurance policies. The aim of this article is to analyze whether the financial literacy (FL) of the business owner or manager is associated with the consumption of insurance by the business. This article uses a quantitative methodology based on a sample of over 1,100 Spanish MSEs, obtained from the first edition of the Survey on Financial Competencies in Small Businesses, conducted in 2021. In particular, binary and ordered probit estimations are applied, revealing a positive relationship between the financially savvy behaviors of the business owner and the use of business insurance.
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