The Role of Financial and Entrepreneurial Literacy in Developing Graduate Entrepreneurial Intentions: Larkana and Sukkur, Sindh, Pakistan

Abstract

Purpose – This research paper aimed to determine the role of financial and entrepreneurial literacy in developing graduate entrepreneurial intentions (GEI) among graduates and undergraduates of Larkana and Sukkur universities / higher education institutes.

Design/Methodology/Approach –The quantitative survey method was used. 409 students filled out a five-point Likert Scale questionnaire and data were analyzed and interpreted data by using the SPSS 26 version (descriptive results and pie charts) and Smart PLS 3.3.5 version (measurement model: factor loadings, reliability and validity and structural models: hypotheses testing, and mediation results).

Findings –The study discovered that financial literacy has negative influence on graduate entrepreneurial intentions (GEI) while entrepreneurial literacy positively influence on GEI. Financial and entrepreneurial literacy positively influences on ATNVC and ATNVC also has positive influence on GEI. Mediation results showed that the mediating variable had no mediation between financial literacy and graduate entrepreneurial intentions. However, the mediating variable has a partial median between entrepreneurial literacy and graduate entrepreneurial intentions to start a business in the future.

Practical Implications – To endorse the financial and entrepreneurial literacy among graduate entrepreneurial intentions as these have significant impact on business succession and it could be enhanced by different university courses, trainings, and workshops etc. to help student to open new business to reduce unemployment and also boost country’s economy.

Originality/Value – This study contributed to the literature on financial literacy, entrepreneurial literacy, graduate entrepreneurial intentions, and entrepreneurship education. This study will help the country's economy because it teaches individuals how to manage money both personally and in business, which will ultimately help them be more entrepreneurial and open more business opportunities.