Digital engagement in financial inclusion for bridging the gendered entrepreneurial financial gap: evidence from India

The rising tide of women entrepreneurship, the unparalleled rise in fintech, and the inclusive nature of digital technologies led to the democratization of entrepreneurship, challenging structural constraints ascribed to gender-specific roles. The democratization underscores the economic implications of women entrepreneurs’ digital engagement in response to global digital by default. Hence, through the social cognitive theory, the study examines whether leveraging Digital Financial Literacy ensures Financial Inclusion for women entrepreneurs, unveiling the potential of digital engagement in bridging the entrepreneurial-gendered financing gap, which has been explored less. A primary survey of 214 women entrepreneurs was analysed using Hayes PROCESS macro-model 8. The findings reveal that Digital Financial Literacy significantly influences Financial Inclusion and Firm Performance. Financial Inclusion partially mediates the relationship between Digital Financial Literacy and Firm Performance. However, Financial Behaviour negatively moderates the relationship between Digital Financial Literacy and Firm Performance and remains insignificant between Digital Financial Literacy and the Financial Inclusion link. Hence, the study offers insights to entrepreneurs, policymakers, and academicians on the potential of Digital Financial Literacy in narrowing the gender finance gap. It also emphasizes the need to improve the financial behavior of women entrepreneurs.