Impact of Financial Literacy on Young Entrepreneurs in Bangalore City

Abstract

The study explores the impact of financial literacy and financial inclusion on the entrepreneurial inclination of undergraduate students in Bangalore, focusing on autonomous institutions. It aims to understand the current scenario and the influence of financial knowledge on entrepreneurship, considering demographic factors. The research examines the pattern of financial literacy in India, emphasizing initiatives like the National Strategy for Financial Inclusion and government programs. The Financial Literacy Index categorizes financial literacy levels across states, with Karnataka exhibiting notable financial literacy, particularly in urban regions.

The study identifies factors influencing the success of Micro, Small, and Medium-sized Enterprises (MSMEs) entrepreneurs in Bangalore, focusing on variables such as financial literacy, awareness of financial inclusion, and entrepreneurial willingness among undergraduate students. Key findings indicate a strong awareness of financial risks among students, with a need for increased knowledge about funding sources. Financial inclusion is perceived positively, but there is room for improvement in students' motivation to become entrepreneurs. Government policies receive favorable responses, but students emphasize the importance of additional entrepreneurial skills beyond financial aid.The study concludes with implications and recommendations, stressing the need for enhanced financial literacy programs, policy support, skill development, and collaborative efforts to foster a conducive environment for aspiring entrepreneurs. Limitations include the study's focus on Bangalore's undergraduate students, and future research could explore long-term entrepreneurial outcomes across diverse regions and educational contexts.