Personal financial literacy and personal debt management: The potential relationship with new venture creation
Prior research shows that personal savings are one of the most important financial sources for start-ups of entrepreneurial firms. The lack of personal savings and seeming shortage of financial knowledge could contribute to the low incidence of new venture creation, and the high failure rate amongst...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2008-12-01
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| Series: | The Southern African Journal of Entrepreneurship and Small Business Management |
| Online Access: | https://sajesbm.co.za/index.php/sajesbm/article/view/11 |
| _version_ | 1819133542460817408 |
|---|---|
| author | Liezel Kotzé Prof A.v.A Smit |
| author_facet | Liezel Kotzé Prof A.v.A Smit |
| author_sort | Liezel Kotzé |
| collection | DOAJ |
| description | Prior research shows that personal savings are one of the most important financial sources for start-ups of entrepreneurial firms. The lack of personal savings and seeming shortage of financial knowledge could contribute to the low incidence of new venture creation, and the high failure rate amongst South African entrepreneurs. This paper investigates the perceptions of 286 Business Management students with a minimum of three years’ working and management experience, regarding both their financial literacy and their need and desire for financial education. The outcomes of the study show the necessity for financial education and financial literacy in South Africa. The respondents showed a lack of confidence in their money management skills and expressed a desire for more financial knowledge. It is possible that an increased level of financial literacy could lead to more entrepreneurial activity and a decrease in new venture failures.
Key words and phrases: personal financial literacy, personal debt, personal savings, personal financial management, new venture creation |
| first_indexed | 2024-12-22T09:48:57Z |
| format | Article |
| id | doaj.art-a577065cb24341bcb81e3493da1c1664 |
| institution | Directory Open Access Journal |
| issn | 2522-7343 2071-3185 |
| language | English |
| last_indexed | 2024-12-22T09:48:57Z |
| publishDate | 2008-12-01 |
| publisher | AOSIS |
| record_format | Article |
| series | The Southern African Journal of Entrepreneurship and Small Business Management |
| spelling | doaj.art-a577065cb24341bcb81e3493da1c16642022-12-21T18:30:28ZengAOSISThe Southern African Journal of Entrepreneurship and Small Business Management2522-73432071-31852008-12-0111355010.4102/sajesbm.v1i1.118Personal financial literacy and personal debt management: The potential relationship with new venture creationLiezel Kotzé0Prof A.v.A SmitUniversity of the Free StatePrior research shows that personal savings are one of the most important financial sources for start-ups of entrepreneurial firms. The lack of personal savings and seeming shortage of financial knowledge could contribute to the low incidence of new venture creation, and the high failure rate amongst South African entrepreneurs. This paper investigates the perceptions of 286 Business Management students with a minimum of three years’ working and management experience, regarding both their financial literacy and their need and desire for financial education. The outcomes of the study show the necessity for financial education and financial literacy in South Africa. The respondents showed a lack of confidence in their money management skills and expressed a desire for more financial knowledge. It is possible that an increased level of financial literacy could lead to more entrepreneurial activity and a decrease in new venture failures. Key words and phrases: personal financial literacy, personal debt, personal savings, personal financial management, new venture creationhttps://sajesbm.co.za/index.php/sajesbm/article/view/11 |
| spellingShingle | Liezel Kotzé Prof A.v.A Smit Personal financial literacy and personal debt management: The potential relationship with new venture creation The Southern African Journal of Entrepreneurship and Small Business Management |
| title | Personal financial literacy and personal debt management: The potential relationship with new venture creation |
| title_full | Personal financial literacy and personal debt management: The potential relationship with new venture creation |
| title_fullStr | Personal financial literacy and personal debt management: The potential relationship with new venture creation |
| title_full_unstemmed | Personal financial literacy and personal debt management: The potential relationship with new venture creation |
| title_short | Personal financial literacy and personal debt management: The potential relationship with new venture creation |
| title_sort | personal financial literacy and personal debt management the potential relationship with new venture creation |
| url | https://sajesbm.co.za/index.php/sajesbm/article/view/11 |
| work_keys_str_mv | AT liezelkotze personalfinancialliteracyandpersonaldebtmanagementthepotentialrelationshipwithnewventurecreation AT profavasmit personalfinancialliteracyandpersonaldebtmanagementthepotentialrelationshipwithnewventurecreation |