Relationship Between Financial Literacy and Entrepreneurial Success in Kosovo
Session
Management, Business and Economics
Description
This paper aims to assess the relationship between financial literacy among entrepreneurs and their entrepreneurial success in Kosovo. Entrepreneurs are continuously involved in decision-making regarding venture financing, allocation and utilization of financial resources, analysis of creditors and debtors, cash management, book-keeping practices and business risk assessment to run their own businesses. Financial literacy contributes to the profile of the entrepreneur. In fact, studies have shown that there is a direct causal link between financial literacy levels and entrepreneurial performance. In this paper, financial literacy is defined in the context of entrepreneurs of small and medium businesses. A financially literate entrepreneur defines one that demonstrates knowledge in assessing financing and financial management options throughout the business development stages; capacity to generate, read, and understand financial statements; knowledge of financial products; knowledge of legal and regulatory framework. On the other hand, entrepreneurial performance is indicated through sales growth, profitability, timely loan repayments, risk management, return on assets, and liquidity. This study focuses in Kosovo and a survey questionnaire will be distributed to entrepreneurs running SMEs in Kosovo.
Keywords:
Financial Literacy, Entrepreneurial Performance, Business Performance, Kosovo, Entrepreneurship.
Session Chair
Hasan Metin
Session Co-Chair
Leonita Braha Vokshi
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-19-2
Location
Pristina, Kosovo
Start Date
26-10-2019 3:30 PM
End Date
26-10-2019 5:00 PM
DOI
10.33107/ubt-ic.2019.365
Recommended Citation
Ademi, Bejtush, "Relationship Between Financial Literacy and Entrepreneurial Success in Kosovo" (2019). UBT International Conference. 365.
https://knowledgecenter.ubt-uni.net/conference/2019/events/365
Relationship Between Financial Literacy and Entrepreneurial Success in Kosovo
Pristina, Kosovo
This paper aims to assess the relationship between financial literacy among entrepreneurs and their entrepreneurial success in Kosovo. Entrepreneurs are continuously involved in decision-making regarding venture financing, allocation and utilization of financial resources, analysis of creditors and debtors, cash management, book-keeping practices and business risk assessment to run their own businesses. Financial literacy contributes to the profile of the entrepreneur. In fact, studies have shown that there is a direct causal link between financial literacy levels and entrepreneurial performance. In this paper, financial literacy is defined in the context of entrepreneurs of small and medium businesses. A financially literate entrepreneur defines one that demonstrates knowledge in assessing financing and financial management options throughout the business development stages; capacity to generate, read, and understand financial statements; knowledge of financial products; knowledge of legal and regulatory framework. On the other hand, entrepreneurial performance is indicated through sales growth, profitability, timely loan repayments, risk management, return on assets, and liquidity. This study focuses in Kosovo and a survey questionnaire will be distributed to entrepreneurs running SMEs in Kosovo.