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The impact of financial literacy and financial management behavior on recognition of startup opportunity

Year: 2024

Type: article

Abstract: Financial literacy is an essential life skill today and plays a crucial role in business success. This study examined the relationship between college students’ financial literacy, financial management behavior, and entrepreneurial opportunity recognition. A survey was conducted among college students in the Busan and Gyeongnam regions, and a total of 272 responses were analyzed using SPSS 28.0. The results showed that financial literacy partially positively affects financial management behavior. Furthermore, financial management behavior positively influences entrepreneurial opportunity recognition. Financial management behavior partially mediates the relationship between financial literacy and entrepreneurial opportunity recognition. Improving the financial literacy of college students during adolescence serves as a motivation for entrepreneurship and significantly impacts their exploration and practice of various income activities to achieve their expected future living standards. The study’s findings indicate that for potential entrepreneurs, recognizing and promoting entrepreneurship as a source of innovation and growth requires incorporating financial literacy and desirable financial management behavior education into university curricula.

Source: Journal of Infrastructure Policy and Development

DOI: 10.24294/jipd.v8i9.7268

Authors: Gyung-Lan Kang, Cheol-Woo Park

Institution: Pusan National University

Language: English

Topic: Financial Literacy and Behavior

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Quality education

Open Access status: diamond

Funders: Pusan National University, Commercializations Promotion Agency for R and D Outcomes