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This study examines the interrelations among educational level, financial literacy, financial inclusion and informal financial business practices of female entrepreneurs in Lima, Peru, focusing on their intentions toward business formalization. Additionally, it explores the influence of legal formalization on both business formality and tendencies toward informality intentions.

The methodology involved a self-administered survey among 118 female entrepreneurs in the small vendor “Bodega” sector, with statistical analysis conducted via partial least structural equation modeling.

The study’s outcomes validated the significant role of financial literacy and inclusion as mediators between educational level and formalization intentions. Notably, legal formalization did not significantly alter these dynamics.

Limitations arise from the study’s explanatory power and lack of predictive capability for all dependent variables, likely due to sample specificity. Additionally, the quantitative research approach does not allow for a deeper understanding of these phenomena.

We advocate reevaluating prevailing attitudes toward legal formality and informal practices, emphasizing tailored public policies for older female entrepreneurs and access to formal financing independent of legal registration. This underscores the need for enhanced educational levels for young women and coordinated efforts among institutional actors to more effectively promote formality.

This research contributes original insights into the emphasis on informal practices over mere legal registration, especially pertinent to female entrepreneurship. It also highlights the counterintuitive significant inverse relationship between age and formalization intentions, enriching the discourse on entrepreneurial motivation.

This study aims to examine whether market orientation or innovation is a more significant mediator between an entrepreneur’s culture and perceived success in Cuba, where innovation is highly regarded because of economic challenges and US embargoes, but doubts persist about market orientation because of its socialist economy.

Havana entrepreneurs were surveyed on culture, market orientation and innovation. Data were analyzed using structural equation modeling with the partial least squares approach in SmartPLS 4.

The results showed partial mediation for both market orientation and innovation. Culture significantly affects performance directly. Surprisingly, a less market-oriented culture enhances performance, with innovation acting as the stronger mediator, despite the inverse relationship between market orientation and innovation.

The limitations include reliance on self-reported measures, lack of objective performance verification and a narrow focus on entrepreneurs rather than clients. Despite these constraints, the study provides valuable exploratory insights into Cuba’s closed economy, following the principle of being “approximately right than exactly wrong.”

The findings confirm the positive impact of Cubans’ innovative spirit on performance but reveal a contradiction: less market-oriented cultures perceive themselves as market-oriented and perform better. This misperception suggests the need for further investigation and training to promote market-oriented business culture. Collaboration with international business schools may be necessary, as this distortion could harm customer satisfaction.

The originality of the research lies in that, to the best of the authors’ knowledge, this is the first study on Cuban entrepreneurs’ market orientation. It has the value to illustrate how socialists’ ideology can contradict assumed theoretical established approaches about market functioning.