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Financial Literacy, Risk Perception, and Entrepreneurial Decision-Making among Young Entrepreneur in Indonesia Najdah Thalib; Diah Hari Suryaningrum; Aryo Prakoso; Hakim Hakim
International Journal of Business, Law, and Education Vol. 6 No. 2 (2025): International Journal of Business, Law, and Education
Publisher : IJBLE Scientific Publications Community Inc.

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56442/ijble.v6i2.1316

Abstract

This study investigates the influence of financial literacy and risk perception on entrepreneurial decision-making among young entrepreneurs in Indonesia. As youth entrepreneurship continues to expand and contribute to national economic development, understanding the cognitive and behavioral factors that drive entrepreneurial decisions becomes essential. Using a quantitative approach with a sample of 150 young entrepreneurs aged 18–35, data were collected through a structured online questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that both financial literacy and risk perception significantly and positively influence entrepreneurial decision-making. Financial literacy is identified as the strongest predictor, highlighting the importance of financial capability in shaping rational and strategic business decisions. Moreover, risk perception not only directly affects decision-making but also indirectly influences it through financial literacy, indicating partial mediation. These findings underscore the critical role of strengthening financial knowledge and risk awareness among young entrepreneurs to enhance their decision-making effectiveness and business sustainability. This study provides important implications for policymakers, educational institutions, and entrepreneurship development programs aiming to support the growth and resilience of youth-led enterprises in Indonesia.
Co-Authors A. Abdullah Acep Fatchuroji Adela Anita Ahmad setyono Al Ikhlas Alfan Nur Hamid Ali Zaenal Abidin Andri Irawan Anggreni, Made Ayu Antesty, Sella Antoni Antoni Antoni Antoni Antonius Rino Vanchapo Ari Purwanti Ari Purwanti Arief Yanto Rukmana Arvel Vanya Azlea Fangohoy Aryo Prakoso Aslichah, Aslichah Astuti Astuti Astuti, Enny Diah Aziz, Safiullah Basri Modding Boari, Yoseb Cahyo Budi Santoso CNAWP, Rizal Perlambang Damayanti Damayanti Damayanti Damayanti Damayanti Damayanti Desmina Kristiani Hutabarat Desmina Kristiani Hutabarat Diah Hari Suryaningrum Dumiyati Dumiyati Dwi Dersmi Selan Dyah Ayu Suryaningrum Eligius Genaro Sirwutubun Elizar Elizar, Elizar Eva Yuniarti Utami Everitus Rikardus Febri Pramudya Wardani Firdaus, Gegga Firyant Fuad Gagarin Siregar Gabriel Gloria Ohee Gegga Firyant Firdaus Hakim Hakim Hanip, Rival Haruni Ode Haryanti, Yuyun Dwi Hayu Lusianawati Hermanto Tinambunan herrio tekdi Nainggolan Hotnida Nainggolan Hotnida Nainggolan Hubertus Oja, Hubertus Ida Bagus Made Wisnu Parta Intan Farida Khasanah Ira Wulan Sari Judijanto, Loso Juli Arianti Juli Arianti Jusra Tampubolon Kalla, Rastina Khan, Omar Khoirul An’am Kiki Farida Ferine Laurensia Elya Puspita Leonora Puspa Leonora Puspa Lilik Huriyah Loso Judijanto Lusianawati, Hayu Made Susilawati Mahuze, Paustina Ngali Makulua, Korlina Muhammad Arsyad Mutiya Oktariani Nur Jalal Nurmala Sari Nurul Uswatun Hasanah Pandia, Betharia Sembiring Parman Jasnur Pattiruhu, Claudia Monique Prasetya, Muhammad Novan Prilosadoso, Basnendar Herry Prima Lestari Situmorang Puspa, Leonora Rachman, Reza Saeful Riris Lawitta Riris Lawitta, Riris Lawitta Riris Riyanti, Apriani Samuel Mamonto Selan, Melvianus Serlina Boru Sinaga Setyawan, Antonius Ary Seven Marganda Bako Situmorang, Prima Lestari Subroto, Desty Endrawati Sujatmiko, Wandi Survey Sijabat Suryanti sutriningsih sutriningsih Syahfitriani Br Ginting Syaifullah MS Teguh Setiawan Wibowo Ti Aisyah Umiyati Haris Utami, Eva Yuniarti Wanda Laksniyunita Yoseb Boari