Entrepreneurial Intentions Among Malaysian Working Adults: Exploring the Effect of Financial Knowledge and Financial Risk
List of Authors
Hee Kit Phoon, Kean Siang Ch’ng, Phaik Nie Chin
Keyword
Entrepreneurial Intentions Among Malaysian Working Adults: Exploring the Effect of Financial Knowledge and Financial Risk
Abstract
This research explores the entrepreneurial intention (EI) of Malaysian working adults, specifically examining the roles of financial knowledge (FK) and financial risk tolerance (FRT). Entrepreneurship is vital in driving economic growth, but most of the research focuses almost exclusively among the university students, neglecting the potential of working adults with substantial industry experience and financial resources. This study adopted the Theory of Planned Behaviour (TPB) as a guiding framework. A quantitative approach was utilised, employing a self-administered online survey distributed through purposive sampling. Data are analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Results showed that attitude towards entrepreneurship (ATE), financial risk tolerance (FRT) and perceived behavioural control (PBC) significantly influence EI, with attitude having the strongest effect. However, financial knowledge (FK) and subjective norms (SN) were not statistically significant. These suggested behavioural and psychological traits such as personal motivation, financial risk-taking ability and self-confidence outweighed cognitive financial knowledge and social pressure. Practical implications suggest the need for policymakers in organising the programmes that boost entrepreneurial attitudes and risk management skills, as well as offering a strong financial support system. For businesses, intrapreneurship and skill development initiatives can harness employee potential in building a strong entrepreneurial mindset. At the societal level, storytelling and media exposure may foster intrinsic motivation for entrepreneurship.