Melany Lotter

Abstract

Financial literacy becomes a critical asset for aspirational entrepreneurs navigating challenging economic landscapes. It empowers individuals to effectively manage their finances, mitigate risks, and make informed decisions amidst uncertain market conditions. Studies include multifaceted exploration of financial literacy within entrepreneurship. While existing literature reviews offer valuable insights into the connection between financial literacy and entrepreneurship, a gap remains in understanding how financial literacy fosters entrepreneurial intention. Unemployment remains a significant challenge, and many developing countries like South Africa face high unemployment rates and low financial literacy. A critical review of global studies on financial literacy and entrepreneurial intent yields findings that merit consideration. While research on the connection between financial literacy and entrepreneurial intent has grown in recent years in developed and developing countries, it remains a relatively understudied area. The findings suggest that financial literacy generally correlates with a higher likelihood of starting a business, although other factors might influence this relationship. Some studies suggest it is a stronger motivator for men than women. By synthesising findings from various studies, the review can contribute to a deeper understanding of the relationship between financial literacy and entrepreneur intent, informing policy decisions and strategic intervention to create an environment that encourages and empowers individuals to pursue their entrepreneurial aspirations.