Sands of opportunity: the role of financial capabilities in shaping entrepreneurial intentions in Saudi Arabia

Entrepreneurship is widely acknowledged as a driver of economic development in emerging economies, yet the specific financial capabilities that underpin individuals’ entrepreneurial intentions (EI) remain insufficiently understood. Drawing on the Theory of Planned Behavior and complementary perspectives from self-regulation and consumer socialization, this study examines how four dimensions of financial capability—financial knowledge, financial attitude, financial behavior, and financial socialization—influence EI among university students in Saudi Arabia. Using survey data from 438 students and Partial Least Squares Structural Equation Modeling, the findings show that financial attitude, financial behavior, and financial socialization significantly predict EI, whereas the direct effect of financial knowledge on EI is non-significant. By demonstrating that financial knowledge exerts influence primarily through attitudinal and behavioral channels rather than as a direct driver of intention, the study advances a more nuanced understanding of how financial capability shapes entrepreneurial motivation. Theoretically, the study contributes by extending the Theory of Planned Behavior with finance-specific capability constructs and clarifying their distinct roles in intention formation. Practically, the findings offer actionable insights for educators and policymakers to design integrated, behavior-oriented financial capability interventions aimed at strengthening early-stage entrepreneurial intentions.