Social Capital and Household Economic Welfare: Do Entrepreneurship, Financial and Digital Literacy Matter?

Abstract

Alleviating household economic fragility and poverty is a global challenge in achieving a nation’s well-being. This study aims to examine the impact of social capital and Indonesian household economic welfare, as well as understand the mediating role of entrepreneurial, digital, and financial literacy. To address this objective, a structural equation modeling partial least square was adopted to acquire comprehend findings. The survey data were gathered from households in East Java of Indonesia using a simple random sampling approach. The findings from this study highlight that social capital significantly influences several literacies of households in Indonesia, including digital literacy, financial literacy, and entrepreneurial literacy. However, this study failed to confirm the nexus between social capital and household economic welfare. In addition, financial literacy, digital literacy, and entrepreneurial literacy all play an important role in mediating the connection between social capital and the economic welfare of households.

The effect of entrepreneurship education on the entrepreneurial intention of different college students: Gender, household registration, school type, and poverty status

“…However, EE widens the gap and thus exacerbates the intergenerational cycle of poverty. On the one hand, nonpoor students have the advantages of family status, social capital, and an entrepreneurial environment, and they will benefit more from the same entrepreneurial education [ 16 , 109 ]. On the other hand, if poor students receive the same education, they can only bear the consequences of "the strong getting stronger and the weak getting weaker," thus widening the gap with nonpoor students regarding human capital and self-efficacy and increasing the actual inequality [ 6 ].…”

“…Moreover, because nonpoor students do not need to make money immediately after graduation to support themselves and their families, they have more freedom to start their businesses. In contrast, it is difficult for poor college students to obtain the start-up capital and social capital needed for entrepreneurship from their families [ 109 ]. In addition, due to the economic difficulties of their families, they need to make money to support their families immediately after graduation, so they prefer to find stable nonentrepreneurial jobs, such as employment in large enterprises or government departments to obtain a stable salary, and their EI is relatively low.…”

Impact of Financial Literacy on the Socio-Economic Well-being of People in Kaski District, Nepal

“…Financial literacy pertains to the knowledge and competencies required for the effective management of personal financial matters, encompassing aspects such as budgeting, saving, investing, and retirement planning (Nepal Rastra Bank, 2020). The extent of financial literacy prevalent within a given population possesses significant implications for key socioeconomic indicators, including economic growth, income inequality, and social welfare (Prayitno et al, 2022). Consequently, financial literacy exhibits a strong correlation with various SDGs, specifically those pertaining to poverty reduction, economic advancement, and sustainable development.…”

“…At a broader level, financial literacy extends its implications to encompass the overall economic and social well-being of a population. A higher level of financial literacy within a society has significant ramifications, including the promotion of stable financial markets and fostering stronger economic growth (Prayitno et al, 2022). A financially literate population is more likely to possess enhanced access to credit, thereby facilitating entrepreneurial endeavours and fostering the development of small businesses (Chaulagain, 2019).…”

“…Moreover, financial literacy plays a pivotal role in mitigating income inequality and poverty (Ingale & Paluri, 2022). Individuals who possess inadequate financial literacy often find themselves trapped in cycles of poverty and indebtedness (Lea, 2021), with limited access to resources and opportunities for socioeconomic advancement (Prayitno et al, 2022). In contrast, individuals with elevated levels of financial literacy are empowered to accumulate wealth and foster economic opportunities for themselves and their families (Van Rooij et al, 2012).…”