Publication: Accounting and Finance Literacy and Entrepreneurship: an Exploratory Study
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Date
2023
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Elsevier
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Abstract
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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Attribution-NonCommercial-NoDerivatives 4.0 International
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IE Business School
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Trombetta, M. (2023). Accounting and finance literacy and entrepreneurship: An exploratory study. Journal of Accounting and Public Policy, 42(2), 107078. https://doi.org/10.1016/j.jaccpubpol.2023.107078.