Event Title

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

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Oct 26th, 3:30 PM Oct 26th, 5:00 PM

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.