Business Education and Entrepreneurial Participation in Punjab: Mediating Role of Financial Literacy

Abstract

Entrepreneurial activity is considered a key to economic prosperity of developing economies like Pakistan. Unfortunately, graduates in Pakistan exhibit lower entrepreneurial potential. This study investigates whether Business Education and Financial Literacy contributes towards Entrepreneurial Participation of graduates in Punjab province of Pakistan or not? Using data from 322 graduates, graduated between 2016-2019, this study found that these graduates exhibit lower levels of Financial Literacy and Entrepreneurial Participation. It was further established that Business Education explained Financial Literacy of the graduates, whereas Financial Literacy mediated the impact of Business Education on Entrepreneurial Participation in Punjab province of Pakistan. The study argues that there is a need to embed more practice into education and enhance financial literacy of graduates to boost entrepreneurial activity in the country.