Unpacking the Mediating Role of Financial Literacy between Women’s Economic Empowerment and Green Microfinance Initiatives - Acta Universitatis Sapientiae

Acta Univ. Sapientiae, Economics and Business, 13 (2025) 45–69

Abstract. The goal of this study is to understand how financial literacy (FL) mediates the relationship between women’s economic empowerment (WEE) and green microfinance (GMF). The study defines women’s economic empowerment as the explanatory, financial literacy as the mediator, and green microfinance as the outcome variable by using a conceptual framework. The data for the study has been collected in the second quarter of 2024 using both Google forms and offline survey method, from 500 working women in North India. To analyse the direct and indirect relationship, Partial Least Square Structural Equation Modelling (PLS-SEM) was used in the study. The study emphasizes how crucial locally relevant financial literacy is to advancing women’s empowerment in community development settings. The study provides valuable insight to stakeholders by emphasizing sustainable development and financial inclusion and also by highlighting how genderspecific programmes with pro-literacy policies are necessary to improve sustainability in green microfinance initiatives.

Keywords: sustainability, microfinance, green finance, mediation, women’s economic empowerment, financial literacy