This study aimed to analyse the relationship between financial capability and student entrepreneurship at Scottish universities. Three research questions were considered based on the gaps and disagreements highlighted in the literature review. First: ‘What is the level of financial capability of student entrepreneurs at Scottish universities and how does it differ from that of other students?’ Second: ‘What factors contribute to the financial capability development of student entrepreneurs?’ and third: ‘What are the relationships between specific components of financial capability and entrepreneurial attitudes and intentions?’
Using a mixed method design to data collection, the study incorporated an online questionnaire and face-to-face interviews. Data were collected from 107 students and 30 student entrepreneurs. The questionnaire findings showed that student entrepreneurs exhibited higher levels of financial capability, were more willing to take risks and also viewed entrepreneurship as less risky, when compared to other students. The data also suggested the need for improving students’ financial capability, especially regarding investments. Furthermore, the research established a remarkable relationship between financial capability and entrepreneurial attitudes and intentions. Interview data indicated that the development of financial capability is a complex process, but it is mainly shaped by parental influence, followed by internal triggers, experience concerning work and business and independent living.
By establishing the need for improved levels of financial capability and the relationships between entrepreneurship and financial capability, this study recommends that both financial capability and entrepreneurship development programmes and policies should be encouraged to target students and student entrepreneurs with the groups’ specific requirements in mind.
Table of Contents
1 Introduction
1.1 Research Problem
1.2 Research Aim and Objectives
1.3 Research Questions
1.4 Structure
2 Literature Review
2.1 Financial Capability
2.2 Entrepreneurship
2.2.1 Student Entrepreneurship
2.3 Financial Capability and (Student) Entrepreneurship
2.4 Conclusions of Literature Review
3 Research Methodology
3.1 Research Method
3.2 Sampling
3.3 Primary Data
3.3.1 Questionnaire
3.3.2 Interviews
3.4 Secondary Data
3.5 Ethical Considerations and Procedures
3.6 Data Analysis
3.6.1 Level of Financial Capability (RQ1)
3.6.2 Financial Capability Development (RQ2)
3.6.3 Relationships between Components (RQ3)
3.7 Limitations
3.8 Conclusions of Research Methodology
4 Results
4.1 Descriptive Statistics
4.2 Level of Financial Capability
4.2.1 Components of Financial Capability
4.3 Financial Capability Development
4.4 Relationships between Components
4.5 Conclusions of Results
5 Discussion
5.1 Level of Financial Capability
5.2 Financial Capability Development
5.3 Relationships between Components
6 Conclusion
6.1 Future Research
6.2 Recommendations for Policy
Research Objectives and Themes
This study aims to analyze the relationship between financial capability and student entrepreneurship at Scottish universities, investigating how financial skills influence entrepreneurial intentions and activities among students.
- Analysis of financial capability levels among students and student entrepreneurs
- Identification of factors contributing to financial capability development
- Exploration of relationships between financial components and entrepreneurial attitudes
- Evaluation of the impact of risk attitudes on business start-up intentions
- Development of policy recommendations for educational and support programs
Excerpt from the Book
2.1 Financial Capability
Financial capability is a relatively new concept and there is no clear consensus about its definition. It can be seen as part of the broad capability approach as outlined by Sen (1985), who established a framework for a large part of financial capability literature which is concerned with low levels in developing countries where the external environment is not as enabling as in Scotland. Following are the prominent definitions used in developed countries and the UK specifically:
Definition of financial capability as provided by HM Treasury:
‘People’s knowledge and skills to understand their own financial circumstances, along with the motivation to take action. Financially capable consumers plan ahead, find and use information, know when to seek advice and can understand and act on this advice, leading to greater participation in the financial services market.’ (HM Treasury 2007, p.19)
The World Bank provides the following definition of financial capability:
‘Financial capability is the internal capacity to act in one’s best financial interest, given socio-economic environmental conditions. It encompasses the knowledge (literacy), attitudes, skills and behaviors of consumers with regard to managing their resources, and understanding, selecting, and making use of financial services that fit their needs.’ (World Bank 2013, p.1)
Summary of Chapters
1 Introduction: Introduces the research problem regarding low financial capability and entrepreneurial activity among young adults in Scotland, establishing the study's core research questions.
2 Literature Review: Explores existing academic and governmental definitions and research regarding financial capability, entrepreneurship, and their intersection, identifying key gaps in current knowledge.
3 Research Methodology: Details the mixed-methods approach, including an online questionnaire and semi-structured interviews used to collect data from students and student entrepreneurs at Scottish universities.
4 Results: Presents the statistical findings and qualitative insights regarding the participants' financial capability, factors influencing its development, and relationships between variables.
5 Discussion: Analyzes the empirical results within the context of existing literature, interpreting findings related to financial capability levels, development triggers, and risk attitudes.
6 Conclusion: Summarizes the study’s findings and provides actionable recommendations for policy and future research aimed at improving student financial capability and entrepreneurship.
Key Words
Financial Capability, Student Entrepreneurship, Scottish Universities, Financial Literacy, Risk Attitudes, Entrepreneurial Intentions, Mixed Methods Research, Financial Management, Youth Entrepreneurship, Behavioral Economics, Financial Education, Business Start-up, Parental Influence, Resource Management, Human Capital
Frequently Asked Questions
What is the core focus of this research?
The research focuses on the relationship between financial capability and student entrepreneurship at universities in Scotland, specifically examining how financial skills affect students' entrepreneurial activity.
What are the primary themes addressed in the study?
Key themes include the levels of financial capability among students, the factors that shape these capabilities, the impact of risk attitudes on career choices, and the role of support structures.
What is the main objective of this study?
The primary goal is to analyze the financial capability of student entrepreneurs and assess how specific components of this capability correlate with entrepreneurial attitudes and intentions.
What research methodology was employed?
The study utilized a mixed-methods design, incorporating a quantitative online questionnaire with 137 participants and qualitative semi-structured face-to-face interviews.
What does the main body of the work cover?
It covers literature reviews, methodology, results of statistical analysis, a detailed discussion of the findings, and final recommendations for policymakers and universities.
Which keywords characterize this dissertation?
The work is defined by terms such as financial capability, student entrepreneurship, risk attitudes, entrepreneurial intentions, and financial management.
How did parents influence financial capability?
Parents were identified as the most significant influence on the development of financial capability, often through early exposure to managing pocket money and household responsibilities.
Why are investments and taxes mentioned as critical?
Interviewed student entrepreneurs specifically identified investments and taxes as areas where they currently lack knowledge and would welcome more targeted support from their institutions.
Did the study find a link between risk and entrepreneurship?
Yes, the study found that student entrepreneurs are significantly more willing to take risks than other students, and this willingness is positively correlated with entrepreneurial attitudes.
How does the "Dunning-Kruger effect" relate to the findings?
The study observed this effect in the majority of students who overestimated their financial capability, meaning those with lower actual skills inaccurately rated their ability as higher than it really was.
- Citation du texte
- BA (Hons) Martin Nemecek (Auteur), 2016, The Relationship between Financial Capability and Student Entrepreneurship at Scottish Universities, Munich, GRIN Verlag, https://www.grin.com/document/388041
