Why is it important? Financial literacy in students in entrepreneurship: A systematic literature review

Objectives

This review pursues three objectives: (1) to identify the types of financial skills addressed in research on student entrepreneurship; (2) to assess approaches and interventions used to improve students’ financial literacy; and (3) to examine the impacts of financial literacy on entrepreneurial outcomes such as intentions, decision quality, cash-flow resilience, and venture sustainability.

Research design

This review followed the PRISMA 2020 guideline (Page et al., 2021), comprising four phases: identification, screening, eligibility, and inclusion.

PRISMA procedure

A. Identification

Relevant literature was identified through the Scopus database due to its broad coverage of peer-reviewed journals. The search used Publish or Perish software (Harzing, 2024). The primary keyword string was:

(“financial literacy” AND entrepreneurship AND student*) OR (“financial literacy” AND “youth entrepreneurship”)

The search covered 2014–2024 and yielded 155 records. Visualization of results using Publish or Perish is presented in Figure 2.

B. Screening

Records were screened by title and abstract to remove studies that were not student-focused or unrelated to entrepreneurship. Two independent reviewers conducted the screening and resolved disagreements through discussion.

C. Eligibility

Full-text assessment evaluated methodological clarity, topical fit, and validity of findings.

D. Inclusion

Studies meeting all criteria were retained for synthesis. Inclusion and exclusion criteria were defined a priori to ensure relevance and rigor (Tod, 2019).

Inclusion and Exclusion Criteria

Inclusion: (i) 2014–2024; (ii) peer-reviewed empirical studies (quantitative, qualitative, or mixed methods); (iii) focus on students in an entrepreneurship context; (iv) English language. Exclusion: non-empirical articles, studies outside entrepreneurship education, or non-English sources. After screening 155 records, 36 studies were included in the final synthesis. The selection process of studies is illustrated in Figure 3. The identified records were categorized by document type as shown in Table 1.

Figure 1. Entrepreneurship Ratio in Indonesia.

Note: This figure/table has been reproduced with permission from Katadata (2023).

Figure 2. Scopus keyword search using Publish or Perish.

Figure 3. PRISMA flow diagram.

Objective 1: Types of Financial Skills

The analyzed studies consistently addressed budgeting and cash-flow monitoring as foundational skills, followed by saving and borrowing, risk assessment and investment, capital sourcing, and basic managerial accounting. Skill gaps were most pronounced in investment analysis and capital structure among student populations in developing countries.

Objective 2: Approaches to Improving Financial Literacy

Effective approaches included integrated finance modules within entrepreneurship curricula, case-based learning and business simulations, student venture projects, and mentoring by banks/fintech. Practice-based interventions demonstrated stronger gains in self-efficacy and decision quality compared to lecture-only formats.

Objective 3: Impacts on Entrepreneurial Outcomes

Higher financial literacy was associated with stronger entrepreneurial intentions, improved financial decision-making, greater cash-flow resilience, and better venture sustainability. These patterns align with the Theory of Planned Behavior through enhanced perceived behavioral control. Compared with previous reviews, these findings foreground the importance of finance competencies for student founders in developing countries.

Furthermore, cross-regional evidence reveals contextual differences in how financial literacy is integrated into entrepreneurship education across developing countries. In Asian contexts such as Indonesia, Malaysia, and China, financial literacy programs are commonly delivered through curriculum-integrated modules, digital business simulations, and university-based incubation initiatives that emphasize structured, formal learning. Conversely, studies from African developing economies, including Ghana and Nigeria, highlight informal mentoring systems, peer-to-peer learning, and microfinance-based entrepreneurship training as dominant approaches. These distinctions suggest that while financial literacy universally enhances entrepreneurial outcomes, its implementation and effectiveness are influenced by each region’s educational infrastructure, economic environment, and cultural orientation. Recognizing these variations is critical for designing more context-sensitive entrepreneurship education policies and pedagogical models that promote financial capability among students globally.

A summary of the key characteristics of the reviewed studies is presented in Table 2.