AN EMPIRICAL STUDY ON IMPACT FINANCIAL LITERACY ON STUDENT ENTREPRENEURSHIP

Abstract

In the current economy, the prospects of being an entrepreneur are considered to play a vital role when deciding on an occupation by the students. However, the success of the entrepreneurial venture will depend on the way that; the business will make its decision in the aspect of finance. The aim of this paper is to analyse the role of financial literacy on student entrepreneur using factors that explain how financial knowledge affects intentions, creations, and feasibility of entrepreneurship through empirical analysis. Self-constructed structured questionnaires were distributed among a sample of the undergraduate and postgraduate students from various fields of studies in some institutions. Statistics was used to analyze the data to find out correlation of financial literacy levels with characteristics such as risk-taking capacity, budgeting and preparing for investment and mobilization of resources. In other words; the research findings establish a significant relationship b/w financial literacy & student entrepreneurship.  Banking literacy significantly enhances the student’s competence in managing business finances, and increases their inclination towards business ownership. The outcomes of the study also emphasize that there is a need to ensure that students should be taken through compulsory financial education in their college education. Based on the findings, it is suggested that the policymakers and relevant educational institutions should incorporate and upscale specific ECHO financial literacy programs to foster students’ entrepreneurship.