THE EFFECT OF FINANCIAL LITERACY ON ENTREPRENEURIAL PERFORMANCE WITH FINANCIAL INCLUSION AS A MEDIATION VARIABLE

Abstract

This research has a purpose to determine the effect of financial literacy on entrepreneurial performance, with financial inclusion as a mediating variable. The sampling technique used a 10-times rule approach based on the number of indicators, ensuring that the number of respondents met the criteria for Structural Equation Modelling (SEM) analysis based on Partial Least Squares (PLS) version 4.0.

The research results show that financial literacy has a positive and significant impact on entrepreneurial performance. Furthermore, financial literacy also positively impacts financial inclusion. Other findings indicate that financial inclusion positively impacts entrepreneurial performance and mediates the relationship between financial literacy and entrepreneurial performance. This demonstrates that sound financial understanding not only improves business management skills but also encourages access to and utilization of formal financial services, ultimately strengthening student entrepreneurial performance.