The Effect of Financial Literacy on Entrepreneurship Orientation

Today, factors such as economic uncertainty, shrinkage in employment opportunities and diversification of individual career expectations cause young individuals to be more willing to establish their own businesses instead of traditional business areas. In this context, financial literacy emerges out as an important competence in terms of making the right decisions in the entrepreneurial process, managing risks and using resources effectively. The financial literacy of an entrepreneur plays a crucial role in the relationship between borrower and lender. The aim of this study is to investigate the effect of financial literacy on entrepreneurial orientation, and the survey method was used as the research technique. In line with this main objective, field research was conducted on 347 students who continue their education at Gaziantep University Islahiye Faculty of Economics and Administrative Sciences. The data obtained were evaluated by applying exploratory and confirmatory factor analysis, descriptive statistics, correlation, and regression analyses. As a result of the analysis, it was concluded that the perception and interest dimensions of financial literacy have an effect on the risk-taking and innovation dimensions of entrepreneurial orientation; and the spending and interest dimensions of financial literacy have an effect on the proactiveness dimension of entrepreneurial orientation.