Role of Entrepreneurial Self-Efficacy and Risk-Taking Tendencies in the Relationship Between Financial Literacy and Entrepreneurial Intention

Abstract

Background: In order for entrepreneurs and people who intend to start a venture to be able to use their budgets optimally, to evaluate their investments correctly, to take risks for investment areas that will create opportunities, it is necessary to possess a proper set of skills.Research objectives: The study's primary purpose is to determine the mediating role of entrepreneurs' self-efficacy and risk-taking tendency in the relationship between financial literacy and entrepreneurial intention. The study also aims to establish whether relationships between financial literacy, entrepreneur self-efficacy, risk-taking tendency, entrepreneurial intention, significantly differ according to gender, age, financial literacy and entrepreneurship training.Research design and methods: The sample of the study consists of university students who are potential entrepreneur candidates in the future. Relationships between financial literacy, entrepreneurial selfefficacy, risk-taking tendency and entrepreneurial intention were analysed using simple linear regression analysis. SPSS PROCESS (Hayes) plugin was used to test the mediating effects. Results: It was observed that the participants could be evaluated at an acceptable level in terms of financial literacy. However, they were at a moderate level in terms of entrepreneurship self-efficacy and intention and risk-taking tendency. When the relationships between financial literacy, entrepreneurial self-efficacy, risk-taking tendency and entrepreneurial intention were examined, it was concluded that there were significant and positive relationships between all of the variables discussed. Conclusions: Financial literacy, self-efficacy, risk-taking tendency and entrepreneurial intention are features that are in meaningfully supportive relationships.

Financial Literacy and New Business Entry

“…This position is logically and fully substantiated (Cunnighan & Lischeron, 1991;Cuervo, 2005). As a result, individual and environmental determinants of entrepreneurship are considered separate-Research shows the positive impact of financial knowledge on entrepreneurial intentions (Bilal et al, 2020;Tekin & Asar, 2021), especially among students (Aldi et al, 2019;Hasan et al, 2020;Ahmad et al, 2021). However, it should be noted that these trends are conditioned by the chosen field of study and specialisation (Palimąka, 2020).…”