The Impact of Financial Literacy on Entrepreneurial Intention Among Students: A Mediating Role of Risk Tolerance

Abstract

The current research study aims to assess the impact of financial literacy on entrepreneurial intention and to evaluate that mediating effect of Risk tolerance on the relationship of financial literacy and entrepreneurial intention. The data was collected form the business students of universities and degree awarding institutions of district Peshawar. The study was deductive and primary data was collected through questionnaires. A total of 233 students respond to the survey. The findings revealed that financial literacy is significant for investment decisions. Besides, it was also revealed that risk tolerance mediates the relationship of financial literacy and investment decisions. The findings of the study suggest that government, educational and financial institutions should play a vital role in financial literacy, investment decisions, and risk.

Keywords: Financial Literacy, Risk Tolerance, Investment Decision