DefinePK

Abstract

Entrepreneurial intentions are a crucial determinant of an entrepreneurial activities and business success. This research investigates the impact of financial knowledge on entrepreneurial intentions and the role of implementation of financial knowledge as a mediator and risk-taking propensity as a moderator. Additionally, it is based on the theoretical framework of planned behavior and risk management theory. The quantitative research methodology is used for data collection from the entrepreneurs who actively engage in entrepreneurial activities. The results of this study reveal that entrepreneurs with high level of financial knowledge depicts stronger entrepreneurial intentions, with the significant mediation of financial knowledge application in this relationship. Moreover, the study identifies risk-taking propensity as a moderating factor, indicating that individuals who are bold in taking calculated risk show a stronger positive relationship between financial knowledge and entrepreneurial intentions. These findings highlight the importance of financial literacy in the realm of entrepreneurship, while also highlighting the need for training and development programs that brush-up the skills of entrepreneurs to improve their financial and risk management. For educators, policymakers, and aspiring entrepreneurs, this study provides valuable insights in integrating the comprehensive financial education and assessment of risk tolerance in entrepreneurship training. However, this study has some limitations, for instance, it focuses on aspiring entrepreneurs from diverse sectors without considering the industry-specific dynamics that may influence the entrepreneurial intention. Future research should explore in industry-specific dynamics and also include the cross-cultural comparisons may also provide the comprehensive understanding of these findings.