Financial Literacy as a Basic Knowledge for Entrepreneurial Intention: A Study on Diploma Students, Universiti Tun Hussein Onn Malaysia

Abstract

Individuals' tendency to become entrepreneurs and their capacity to establish and manage successful enterprises are greatly influenced by their awareness of financial literacy. The study's shortcomings include its narrow focus on financial literacy components and emphasis on a certain student group, which could limit how comprehensive the results are. Furthermore, many aspects of financial literacy have not yet been thoroughly investigated. This study employed a quantitative methodology, utilizing data collected through Google Forms from 173 UTHM diploma students, to see the relationship between financial literacy and entrepreneurial intention. Financial behavior, knowledge, and self-efficacy were examined using SPSS 29.0. Contrary to predictions, the results showed that students' intention to start a business was not significantly influenced by any of these components of financial literacy. This finding aligns with previous research, referring to a consistent ability despite differences in various educational environments. However, these findings suggest that to effectively encourage entrepreneurial intention among students participating in comparable academic programs, specific educational interventions may be necessary.