DIMENSIONS OF FINANCIAL WELL BEING AND FINANCIAL DISTRESS AMONG ENTREPRENEURS: A SYSTEMATIC REVIEW OF MEASUREMENT TOOLS (I)

Abstract

Financial well-being and financial distress among post pandemic entrepreneurs are critical issues that influence business resilience and sustainability. Financial well-being is generally determined by the level of financial knowledge, financial management skills, sound financial behaviour, and access to relevant financial services. Entrepreneurs with strong financial foundations are better able to make strategic decisions, control cash flow, and plan for the future of their businesses more effectively. Conversely, financial distress often stems from psychological and emotional stress, digital exclusion, weak financial literacy, and constraints in accessing formal financial services. This paper to identify the key dimensions of financial well-being and financial distress, and to evaluate the measurement instruments used in prior studies to assess both constructs. These factors not only disrupt business operations but also increase the risk of business failure. Furthermore, digital financial literacy has become essential in the post pandemic era, as the use of digital platforms for transactions and financing continues to dominate. Social financial influences from family, peers, and institutions also play a role in shaping entrepreneurs’ confidence and financial behaviour. This study adopts a systematic literature review methodology. Peer reviewed articles published between 2019 until 2025 were analysed, focusing on dimensions of financial well-being and distress. Meanwhile, financial self-efficacy strengthens entrepreneurs’ resilience in facing uncertainty. Overall, improving financial knowledge, access, and digital capabilities has been proven to enhance business performance while reducing vulnerability to financial stress.