Breakeven Analysis As Cornerstone To Prioritize Profitability For Women Entrepreneurs

Abstract

Break-even Analysis (BEA) is a fundamental financial tool that enables entrepreneurs to assess cost structures, optimize pricing strategies, and determine the minimum sales volume required for profitability. Despite its important, BEAis given limited emphasis in financial literacy training programs designed for women entrepreneurs. Thus, limited awareness and application of this tool in business decision-making. This study employs a mixed-methods approach, integrating meta-analysis of 34 peer-reviewed journals articles (2010–2022), a comparative analysis of financial literacy curricula, a survey of 200 women entrepreneurs, and qualitative interviews with 12 women business owners to examine the extent of BEA inclusion in financial education and its impact on financial decision-making. The meta-analysis revealed that while topics such as personal finance, borrowing, and saving are extensively covered in financial literacy literature, BEA is largely overlooked. Similarly, the content analysis of six financial literacy modules and three entrepreneurship textbooks also revealed that BEAis not given enough emphasized as animportant strategic tool, causing the practical gap. Survey results further indicated that only 31% of respondents were aware of BEA,  20.55% knew how to calculate it and 17.5% applied it in their businesses. Qualitative interviews corroborated these findings, revealing that none of the participants had been trained in BEA. The lack of emphasis onBEA in training in financial literacy has led to limited abilities to determinepricing strategies and cost management which are important to financial stability. Therefore, there is a necessity for a financial literacy curricula. Grounded in Human Capital Theory and Experiential Learning Theory, this study advocates for a paradigm shift toward hands-on, experience-based BEA training through case studies, simulations, and industry-specific applications. By addressing this gap, financial literacy programs can equip women entrepreneurs with practical financial skills, enhancing their ability to navigate competitive markets, improve profitability, and sustain business growth.

This research is funded by the Ministry of Higher Education (MOHE) under Fundamental Research Grant Scheme (FRGS) with the grant number FRGS/1/2023/SS01/MMU/02/3.