A student or an entrepreneur? Financial capability, behavioral control and subjective norms as pathways to entrepreneurial activity at university

Purpose This study aims to explore how financial capability influences university students' entrepreneurial intentions. Drawing on the theory of planned behavior, it highlights the mediating roles of perceived behavioral control and the boundary conditions of subjective norms in understanding entrepreneurial intention within different university settings. Design/methodology/approach Using a cross-sectional survey of 452 students from 16 UK universities, the study employs structural equation modeling with Mplus (8.6) to examine how students' financial capability shapes entrepreneurial intention outcomes. A moderated mediation model is applied to assess how financial capability interacts with subjective norms and shapes perceived behavioral control, in turn, influencing entrepreneurial outcomes. Findings Our structural equation modeling analyses indicate that financial capability is positively associated with students' entrepreneurial intentions. Moreover, perceived behavioral control significantly mediates this relationship. Crucially, subjective norms moderate the mediated relationship between financial capability and entrepreneurial intentions through perceived behavioral control such that the relationship is stronger when subjective norms are high rather than low. Finally, our additional analyses show that there are also differences between home students and overseas students and research-intensive universities and non-research-intensive-universities. Originality/value This study advances research on entrepreneurship by integrating financial capability with behavioral factors in shaping entrepreneurial intentions in different higher education institutional contexts. It contributes to institutional and behavioral theories of entrepreneurship, offering practical implications for educators, policymakers and university managers seeking to promote student-led ventures, spin-offs and commercialization of research through enhanced financial literacy and behavioral support systems. Students need not only financial literacy but also practical skills in money management, planning, product choice and especially staying informed, which is the strongest driver of entrepreneurial intentions.