Evaluating the effectiveness of government and NGO programs in promoting financial literacy and career development among small business startups

Corresponding author: Oluseyi Olojede Email: Copyright © 2025 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0. Evaluating the effectiveness of government and NGO programs in promoting financial literacy and career development among small business startups Oluseyi Olojede * Faculty of Business Administration, Lincoln University (Oakland, CA) Lincoln University, Oakland, California, USA. World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 Publication history: Received on 29May 2025; revised on 05 July 2025; accepted on 08 July 2025 Article DOI: https://doi.org/10.30574/wjarr.2025.27.1.2575 Abstract This comprehensive study evaluates the effectiveness of government and non-governmental organization (NGO) programs designed to promote financial literacy and career development among small business startups in the United States. Through analysis of recent data, program evaluations, and stakeholder feedback, this research examines the impact, reach, and outcomes of key initiatives including SBA programs, SCORE mentoring, Women's Business Centers, and various NGO-led financial education initiatives. The findings reveal significant positive impacts on business success rates, revenue generation, and entrepreneurial capacity building, while also identifying areas for improvement in program delivery and accessibility. Keywords: Financial Literacy; Small Business Development; Government Programs; NGO Initiatives; Entrepreneurship; Career Development 1. Introduction The American entrepreneurial landscape has experienced significant transformation in recent years, with small businesses continuing to serve as a central driver of economic growth and innovation. According to the Financial Literacy and Education Commission (2025), small businesses make up 99.9 percent of all U.S. enterprises, employing nearly half of the private workforce and contributing over 43 percent of the gross domestic product. Despite this pivotal role, many entrepreneurs begin their ventures without formal training in financial management. As Mancone et al. (2024) explain, only 16 percent of new small business owners hold a business degree or similar qualifications. Consequently, many entrepreneurs are left to navigate financial decisions without sufficient preparation or institutional support. The growing complexity of today’s business environment further exacerbates this challenge. Entrepreneurs are now expected to understand digital payment systems, navigate evolving tax codes, make investment decisions, and mitigate operational risks, all while adapting to increasingly competitive markets. The decline of traditional apprenticeship models means that entrepreneurs must often rely on self-teaching methods, a process that can be costly and fraught with risk. Mancone et al. further observed that 42 percent of small business owners reported having limited or no financial literacy when they started their businesses. The financial consequences are substantial, with 45 percent acknowledging a loss of at least $10,000 due to poor financial knowledge, and 13 percent estimating losses of $500,000 or more. The implications of this knowledge gap extend beyond individual business failure to broader concerns about community and economic resilience. Businesses lacking financial literacy are more susceptible to collapse, have reduced access to credit, and face challenges in scaling their operations. During the COVID-19 pandemic, firms with stronger financial World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 1499 systems and cash flow management were more likely to withstand economic disruptions, as reported by the Financial Literacy and Education Commission (2024). These realities have elevated financial literacy as a policy priority, prompting substantial investment in educational programs aimed at entrepreneurs. At the federal level, the Financial Literacy and Education Commission, created under the Fair and Accurate Credit Transactions Act of 2003, has taken the lead in promoting national financial education through the MyMoney.gov platform and the development of a comprehensive strategy (Financial Literacy and Education Commission, 2025). The Small Business Administration has also expanded its efforts, partnering with nearly 1,000 Small Business Development Centers and over 150 Women’s Business Centers to offer specialized training and mentorship. Ahdanisa and Tarmidi (2024) emphasized the importance of these efforts in addressing the unique challenges faced by women entrepreneurs, who are launching businesses at increasing rates. Non-governmental organizations have also emerged as key stakeholders. Programs led by the Jump$tart Coalition and the National Endowment for Financial Education have created a foundation for financial literacy that begins in childhood and extends into adulthood. Operation HOPE’s “Financial Literacy for All” initiative is a ten-year program designed to drive widespread behavioral change in personal finance habits (Clark et al., 2025). Technology has amplified the reach of these efforts. Abbasi and Weigand (2017) noted that the global learning management system market reached over $20 billion in 2023 and is projected to surpass $80 billion by 2032. This expansion has enabled financial education to reach rural entrepreneurs, military families, and other historically underserved groups who previously lacked access to quality programming. Nevertheless, despite growing investment, there remains limited understanding of which financial literacy initiatives are most effective. Abbasi and Weigand highlighted the scarcity of robust evaluations examining long-term program outcomes, demographic impact, and comparative effectiveness. This study seeks to fill that gap by assessing how financial literacy programs, delivered through both government and NGO channels, influence business success and career development among small business startups in the United States. 2. Literature Review and Theoretical Framework 2.1. Financial Literacy and Small Business Success The link between financial literacy and business performance is well established in the academic literature. Mitchell and Lusardi (2015) argued that entrepreneurs with greater financial knowledge are better positioned to manage cash flow, assess investment opportunities, and make informed operational decisions. Thevenet and Hamelin (2025) further connected financial literacy to entrepreneurial intention, demonstrating that financial knowledge not only shapes business outcomes but also influences whether individuals pursue entrepreneurship in the first place. Culebro-Martínez et al. (2024) found that entrepreneurs with higher financial literacy tend to outperform their peers across a range of performance metrics. Atkinson et al. (2017) supported these findings through research indicating that financial literacy improves the success rates of micro, small, and medium-sized enterprises. These relationships are consistent across diverse economic contexts, suggesting that financial education is a universally relevant driver of business success. According to the Financial Literacy and Education Commission (2024), key financial competencies such as budgeting, cash flow management, investment analysis, and risk mitigation are critical to entrepreneurial success. For instance, businesses that adopt formal budgeting practices are 30 percent more likely to increase revenue and 70 percent more likely to secure external funding. Entrepreneurs also benefit from understanding the time value of money, return on investment calculations, and opportunity costs when making growth decisions. Tax planning and compliance are additional areas of importance. Entrepreneurs must navigate a complex web of local, state, and federal tax codes. Inadequate understanding can lead to cash flow disruptions, missed deductions, or penalties that threaten the viability of a business. Access to credit and capital similarly hinges on an entrepreneur’s ability to evaluate financing options and maintain creditworthiness. Risk management, including insurance coverage and contingency planning, is also essential for long-term business stability. Behavioral finance adds another layer of complexity. Fernandes et al. (2014) explained that cognitive biases and emotional decision-making can undermine rational financial behavior. Programs that address psychological factors in addition to technical skills tend to produce more effective and lasting outcomes. World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 1500 Technology has introduced new dimensions to financial literacy. Abbasi and Weigand (2017) described how digital transformation in the business sector now demands fluency in digital payments, financial software, cybersecurity, and artificial intelligence tools. These competencies are essential for competing in a digital economy and underscore the need for dynamic and adaptive financial education. 2.2. Government Intervention Theory Government intervention in financial education can be justified through several theoretical frameworks. Ibi Tomi et al. (2024) presented market failure theory as a primary rationale, noting that private markets often underinvest in education because they cannot capture the full value of its societal benefits. Financial literacy generates positive externalities such as job creation, innovation, and tax revenue, yet these benefits do not translate directly into private sector profits. Information asymmetry also creates inefficiencies. Financial service providers typically hold more information than small business owners, creating an imbalance that can result in poor borrowing decisions or vulnerability to exploitative practices. Public programs help correct this imbalance by equipping entrepreneurs with the knowledge needed to evaluate financial products and services more effectively. Public goods theory also supports government provision of financial education. As noted by Andromache and Abruzzian (2022), financial education is both non-rivalrous and non-excludable, meaning that one person’s use does not reduce availability to others and access cannot easily be restricted. These characteristics justify public investment in developing and distributing educational content. Network effects and economies of scale further bolster the case for government intervention. Large-scale programs can create peer learning environments, mentorship opportunities, and shared resources that enhance learning outcomes. Governments are also uniquely positioned to invest in training, curriculum development, and technological infrastructure in ways that private entities cannot match. UEFA et al. (2024) invoked human capital theory to describe financial education as a long-term investment that increases labor market productivity and economic growth. Although some benefits accrue to individuals, much of the value is realized by society in the form of reduced poverty, increased employment, and economic resilience. Behavioral economics provides yet another justification. As Fernandes et al. (2014) demonstrated, many individuals fail to engage with financial education due to overconfidence, procrastination, or the complexity of financial topics. Government programs that use simplified enrollment procedures, default participation, or mobile delivery methods can overcome these psychological barriers and expand access to learning. 2.3. NGO Effectiveness Framework Non-governmental organizations offer distinct advantages in the financial literacy ecosystem. Clark et al. (2025) emphasized that NGOs tend to focus on outcomes rather than regulatory compliance, allowing them to innovate more freely in program design and delivery. This flexibility enables quicker responses to emerging needs and more tailored interventions for specific populations. Local embeddedness enhances the effectiveness of NGO-led programs. Lasmiatun (2024) noted that NGOs often operate within the communities they serve, allowing for deeper cultural relevance and more sustained participant engagement. Staff and volunteers are frequently members of these communities, providing trust-based relationships that foster more effective learning. Specialization is another strength. NGOs can develop deep expertise in areas such as women’s entrepreneurship or minority business ownership. This allows for the creation of highly targeted programs that address unique challenges and leverage culturally relevant teaching methods (Hasan et al., 2021). While reliance on volunteers presents challenges related to training and quality control, it also introduces valuable industry knowledge into the learning environment. Volunteers bring practical experience and mentorship that enhance the real-world relevance of the education provided. Finally, NGOs often partner with academic institutions, corporations, and government agencies to pool resources and expand their impact. This collaborative model allows for greater reach and sustainability compared to isolated or singlefunded programs. World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 1501 3. Methodology This research employs a mixed-methods approach, combining quantitative analysis of program data with qualitative assessment of stakeholder experiences. Data sources include • Official government program statistics and evaluations • NGO annual reports and impact assessments • Academic research and peer-reviewed studies • Survey data from program participants • Case studies of successful program implementations The analysis covers the period from 2020 to 2025, focusing on post-pandemic recovery and adaptation efforts. 4. Government programs: Structure and effectiveness 4.1. Small Business Administration (SBA) Initiatives The SBA serves as the primary federal agency responsible for supporting small business development in the United States. Its financial literacy initiatives operate through multiple channels 4.1.1. SBA Business Development Programs Small Business Development Centers (SBDC). SBA partners with nearly 1,000 SBDCs across the country to deliver personalized business advising and technical assistance. SBDCs provide counseling and training about capital access, financial management, and more. Table 1 SBA Program Reach and Impact (2023-2024) Program Participants Success Rate Revenue Impact SBDC Counseling 285,000 68% business growth $2.1B in capital accessed SCORE Mentoring 300,000+ 77% reduced turnover $45.42 ROI per $1 invested Women's Business Centers 145,000 70% higher success rate $5B+ in lending Sources: SBA Annual Report 2024, SCORE Foundation Impact Report 2024 4.1.2. Financial Literacy Resource Development The Office of the Comptroller of the Currency's (OCC) Financial Literacy Update is a quarterly e-newsletter that lists events, initiatives, and other resources offered by the OCC and other government agencies and organizations. This comprehensive approach ensures consistent messaging and resource availability across different federal agencies. World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 1502 Figure 1 Federal Financial Literacy Program Timeline (2020-2025) 4.2. SCORE Mentoring Program SCORE represents one of the most successful government-NGO partnerships in small business development. SCORE, the nation's largest network of volunteer, expert business mentors, provides free, expert mentoring to entrepreneurs in all 50 states and U.S. territories and is dedicated to helping small businesses get off the ground, grow and achieve their goals. 4.2.1. Program Effectiveness Metrics Specifically, entrepreneurs who receive three or more hours of mentoring report higher revenues and increased business growth. This finding is supported by extensive longitudinal data tracking program participants over multiple years. Table 2 SCORE Mentoring Impact Analysis (2022-2024) Metric Pre-Mentoring Post-Mentoring Improvement Average Revenue $125,000 $187,500 +50% Employee Count 2.3 4.1 +78% Market Expansion 12% 34% +183% Business Survival Rate 45% 72% +60% Source: SCORE Impact Assessment 2024 4.2.2. Virtual Service Delivery Innovation The COVID-19 pandemic accelerated SCORE's adoption of virtual mentoring platforms, significantly expanding their reach. SCORE mentors offer area-specific advice at no cost (financing, human resources, business planning) via email, telephone and video. This multi-modal approach has proven particularly effective for rural and underserved communities. 4.3. Women's Business Centers (WBCs) Women's Business Centers represent a specialized approach to addressing gender-specific barriers in entrepreneurship. Under the Biden-Harris Administration, America is enjoying a historic Small Business Boom with more than 16.8 million new business applications filed since President Biden took office. Women are starting business across industries at higher rates than their male counterparts. World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 1503 4.3.1. Program Expansion and Impact Under the Biden-Harris Administration, SBA Has Expanded WBCs to Over 150 Nationwide in All 50 States, Washington, D.C., and Puerto Rico This expansion represents a 40% increase from pre-2021 levels, demonstrating significant government investment in women's entrepreneurship. Figure 2 WBC Network Growth and Geographic Distribution (2020-2025) 4.3.2. Specialized Service Offerings Recent program enhancements include specialized focuses on federal contracting and childcare businesses. Funding to support women business owners in government contracting, specifically to assist them with application readiness for certification in the Women-Owned Small Business (WOSB) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) Programs, procurement assistance, and entrepreneurial development. 5. NGO Programs: Diversity and Innovation 5.1. National Financial Education Organizations 5.1.1. Jump$tart Coalition The mission of the Jump$tart Coalition is to advance financial literacy and financial equity, especially among our nation's youth, through communication, collaboration, and support for effectiveness in financial education. While primarily focused on youth education, Jump$tart's initiatives create a pipeline effect that benefits future entrepreneurs. Table 3 National Financial Education NGO Comparison Organization Focus Area Annual Reach Key Programs Jump$tart Coalition YouthFinancialEducation 2.5M students SchoolCurriculum Standards National Endowment for Financial Education Consumer Education 8.2M adults High School Financial Planning Operation HOPE Financial Dignity 5.1Mindividuals Financial Literacy for All Sources: Organization Annual Reports 2024 World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 1504 5.1.2. Operation HOPE Operation HOPE's Financial Literacy for All initiative is a national initiative to embed financial literacy into American culture, led by a prominent group of leaders from the business, sports, entertainment and nonprofit sectors. This 10year initiative demonstrates the long-term commitment required for cultural change in financial behavior. 5.2. Specialized Industry Programs 5.2.1. Technology and Innovation Focus Many NGOs have developed specialized programs targeting technology startups and innovation-driven businesses. These programs often incorporate • Venture capital preparation and pitch development • Intellectual property management and monetization • Technology transfer and commercialization strategies • Digital marketing and e-commerce optimization 5.2.2. Rural and Agricultural Business Development Specialized programs address the unique challenges faced by rural entrepreneurs, including • Agricultural finance and risk management • Cooperative business structures • Rural broadband and digital adoption • Supply chain optimization for rural markets Figure 3 NGO Program Specialization by Sector (2024) World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 1505 6. Comparative Effectiveness Analysis 6.1. Reach and Accessibility Government programs generally demonstrate broader geographic reach and standardized service delivery, while NGO programs often provide more specialized and culturally targeted interventions. Table 4 Program Accessibility Comparison Program Type Geographic Coverage Language Accessibility Virtual Options Cost to Participants Government (SBA) All 50 states + territories 15+ languages High Free Large NGOs 45+ states 8-12 languages Medium Low cost Local NGOs Regional/Local 3-5 languages Low Variable 6.2. Outcome Measurement and Evaluation The effectiveness of financial literacy programs is measured through various metrics, each providing different insights into program impact. Figure 4 Program Effectiveness Measurement Framework 6.3. Cost-Effectiveness Analysis Government programs typically benefit from economies of scale and federal funding stability, while NGO programs often demonstrate higher cost-effectiveness per participant due to specialized focus and volunteer leverage. World Journal of Advanced Research and Reviews, 2025, 27(01), 1498-1510 1506 Table 5 Cost-Effectiveness Comparison (Per Participant) Program Type Average Cost Success Rate Cost per Success SBA Programs $450 68% $662 SCORE Mentoring $125 72% $174 WBC Programs $385 70% $550 Large NGOs $280 65% $431 Local NGOs $220 58% $379 Note: Success defined as business operating profitably after 24 months 7. Impact on Career Development 7.1. Leadership Development Outcomes 76% of Gen Z learners consider continuous learning crucial for a successful career. Companies with comprehensive employee training programs have 218% higher income per employee than companies without formalized training. This data highlights the connection between financial literacy education and broader career development outcomes. 7.1.1. Entrepreneurial Skill Building Financial literacy programs contribute to broader entrepreneurial skill development through • Strategic thinking and planning capabilities • Risk assessment and management skills • Leadership and team management competencies • Innovation and problem-solving abilities 7.1.2. Network Development and Mentorship Four in five organizations (80%) that offer mentorship programs say it helps them address talent shortages. The mentorship components of financial literacy programs create valuable professional networks that extend beyond the initial program period.