Impact of Financial Literacy on Entrepreneurship

Abstract

Through a survey of 150 Pakistani entrepreneurs, the goal of this research study was to determine if there is a correlation between entrepreneurship and financial literacy. A total of 150 entrepreneurs were randomly selected. SPSS was used to analyze the data. Correlation was used to investigate the strength and relationship between financial literacy and entrepreneurship Moreover, regression analysis was used to check the impact of financial literacy on entrepreneurship. Financial literacy and entrepreneurship were then correlated using data gathered quantitative exploratory design the study. Almost all entrepreneurs who participated in the survey had a high degree of financial literacy, with the majority scoring much higher than the national average. Successful entrepreneurs displayed high levels of financial literacy and grasp of money. However, less successful entrepreneurs showed stagnating development and a lack of financial knowledge, with many of them working in the informal economy. According to the findings of this research, financial literacy is associated with greater levels of entrepreneurial success in Pakistan. It also implies that financial literacy is an essential factor in the success of businesses in both small, medium, and corporate enterprise