Financial Literacy Skills: The Catalyst for Entrepreneurial Sustenance

Abstract

Entrepreneurs are accepted to be the back bone of every upcoming economy. They are the growth engines of both developed and developing economies. The quality of entrepreneurs moreover, decides about the economic status of the nation. In India too, entrepreneurship is being given attention increasingly. The projects like Start-up India, Make in India are targeted towards propelling economic growth of India. Rigorous efforts are directed towards motivating the young generation of India to set up their own enterprises. The government is equally keen in easing the norms of doing business. This all provides a promising picture for economic development of India. However, the percentage of entrepreneurial sickness in India cannot be ignored. Mere start up is not sufficient but sustenance of these enterprises should also be taken care of. Various studies have pointed out that entrepreneurial sickness is mainly caused due to financial indecisiveness. Studies have also shown that the level of financial skills and knowledge among the majority of people especially among young people, is low even in advanced societies (Jacob et al., 2000, p.15). Thus, while money is one of the important issues of the human mind, most people are unwilling to talk about it not because of the lack of interest but due to their poor knowledge in this field (Fox et al., 2005). In this regard financial literacy among the budding entrepreneurs can work wonders. This paper attempts to briefly review the importance of financial literacy and tries to identify its role in entrepreneurial development.

Keywords: Entrepreneurs, Economic Development, Financial Literacy

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