Accounting and Finance Literacy and Entrepreneurship: an Exploratory Study
The aim of this study is to investigate whether the level of financial literacy differs significantly among entrepreneurs in three European countries: Italy, Spain, and the UK. Moreover, I analyze whether financial literacy fosters or hinders entrepreneurial resilience and success. I find that the l...
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2023 |
| País: | España |
| Institución: | IE |
| Repositorio: | Repositorio IE |
| OAI Identifier: | oai:repositorio.ie.edu:20.500.14417/3775 |
| Acceso en línea: | https://doi.org/10.1016/j.jaccpubpol.2023.107078 https://hdl.handle.net/20.500.14417/3775 |
| Access Level: | acceso abierto |
| Palabra clave: | 53 Ciencias Económicas ODS 3 - Salud y bienestar ODS 1 - Fin de la pobreza ODS 10 - Reducción de las desigualdades |
| Sumario: | The aim of this study is to investigate whether the level of financial literacy differs significantly among entrepreneurs in three European countries: Italy, Spain, and the UK. Moreover, I analyze whether financial literacy fosters or hinders entrepreneurial resilience and success. I find that the level of basic financial literacy is significantly lower among entrepreneurs in the UK. I provide an explanation based on job opportunities arguing that basic financial literacy increases the chances of survival of a business, whereas advanced financial literacy decreases it. I propose a taxonomy linking levels of financial literacy with different approaches to financial management. I conclude that a “conservative” approach to financial management (cash based, debt-averse and diversified) is more likely to guarantee survival even if it is not necessarily the best way to maximize firm value. |
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