Financial Knowledge Matters Entrepreneurial Decisions: A Survey in the COVID-19 Pandemic

Abstract

Knowledge, general and specific, plays a role in entrepreneurship. Little is known about the role of general knowledge in entrepreneurial intentions. This study fills the gap by proposing financial knowledge as general knowledge and entrepreneurial education as specific knowledge, and investigates their effects on entrepreneurial intentions and the three motivational factors including attitudes, subjective norm, and perceived behavioral control. Using survey data of 480 undergraduates and the structural equation modeling approach, we find a significant impact of financial knowledge on entrepreneurial intentions and all three motivational factors. Entrepreneurial education does not have a significant direct impact but has an indirect effect on entrepreneurial intentions through attitude and perceived behavioral control. These results are important to educators and policymakers to design appropriate policies to improve financial knowledge due to its significant role in entrepreneurial decisions.