The Determinants of Entrepreneurial Intentions among Youth in Balochistan: Evidence from a Developing Region

Abstract

This study was conducted in Balochistan and discusses how financial literacy, financial attitude, financial knowledge would influence the entrepreneurial intentions of the youths in Balochistan province of Pakistan. In order to examine the impact of financial literacy, the study examined young business owners in Balochistan and their level of financial literacy. Data were gathered through the use of self-administered, structured questionnaires on 210 young entrepreneurs on their financial knowledge, financial attitude, financial education, and entrepreneurship. The author employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to get the relationships between these factors and entrepreneurial intention. As per the findings, financial knowledge, financial attitude, and financial literacy have a positive impact on entrepreneurial intention. Moreover, the financial literacy, both overall and the elements of it make the entrepreneurial propensity of youth even greater. The findings of this research indicate that financial literacy must be encouraged to enhance entrepreneurial intentions. Specific financial education should be provided to the young individuals in Balochistan to increase their capacity to initiate new businesses that will benefit the economy.