The Influence of Financial Literacy on Entrepreneurial Intention among University Students in Malaysia

This research study attempts to examine the influence of financial literacy on entrepreneurial intention among university students in Malaysia. There are some concerning issues researchers are inclined to look into such as the high failure rate of newly established SMEs, lack of awareness of handling personal finances, the rise of bankruptcy cases, lack of experience in starting a business, high unemployment rate, and turnover rate. A structured questionnaire covering financial literacy (financial attitude, financial knowledge) on entrepreneurial intention among university students in Malaysia was distributed to 384 respondents. The findings of this study demonstrated the factors of financial literacy that influence entrepreneurial intention among university students in Malaysia. Not only that, the relationship between financial literacy and entrepreneurial intention among university students in Malaysia was examined. SPSS including descriptive analysis, inferential analysis, regression analysis and Pearson’s correlation coefficient were used to explore the relationship between the variables in this study. Results revealed that financial attitude and financial knowledge have a significant relationship with entrepreneurial intention among university students in Malaysia. The findings of this research project would benefit policymakers, educators and university students in advocating entrepreneurial development.