<p>This study investigates how entrepreneurial practice influences financial literacy among undergraduate students, addressing a critical gap in entrepreneurship education research. Grounded in Entrepreneurship as a Practice (EaP) theory, it explores whether real-world engagement in business ventures enhances financial literacy essential for entrepreneurial success. A quantitative research design was employed using survey data from 288 undergraduate students across Indonesian universities. Respondents were categorized into two groups: those with current or prior entrepreneurial experience and those without. An Ordered probit regression models were estimated using STATA 17 to examine the relationship between entrepreneurial practice and financial literacy, controlling for demographic and academic background variables. The result shows that students who engaged in entrepreneurial activities exhibited significantly higher levels of financial literacy compared to their non-practicing peers. Further, a positive and statistically significant association between entrepreneurial practice and financial understanding is evident, even after controlling for academic discipline, age, gender, and parental entrepreneurial background. This study provides original empirical evidence linking experiential entrepreneurship to financial literacy, advancing EaP theory in educational. It highlights the value of hands-on learning in developing entrepreneurial literacy and offers practical implications for educators, institutions, and policy makers.</p>

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Practicing entrepreneurship builds financial literacy in undergraduate students

  • Boyke Rudy Purnomo,
  • Wildheno H. Ircan,
  • Hisyam A. El Aziz

摘要

This study investigates how entrepreneurial practice influences financial literacy among undergraduate students, addressing a critical gap in entrepreneurship education research. Grounded in Entrepreneurship as a Practice (EaP) theory, it explores whether real-world engagement in business ventures enhances financial literacy essential for entrepreneurial success. A quantitative research design was employed using survey data from 288 undergraduate students across Indonesian universities. Respondents were categorized into two groups: those with current or prior entrepreneurial experience and those without. An Ordered probit regression models were estimated using STATA 17 to examine the relationship between entrepreneurial practice and financial literacy, controlling for demographic and academic background variables. The result shows that students who engaged in entrepreneurial activities exhibited significantly higher levels of financial literacy compared to their non-practicing peers. Further, a positive and statistically significant association between entrepreneurial practice and financial understanding is evident, even after controlling for academic discipline, age, gender, and parental entrepreneurial background. This study provides original empirical evidence linking experiential entrepreneurship to financial literacy, advancing EaP theory in educational. It highlights the value of hands-on learning in developing entrepreneurial literacy and offers practical implications for educators, institutions, and policy makers.