The Impact of Financial Literacy on New Venture Survival
By Sean Wise. 2013
170 citations recorded by the source corpus.
This is an investigation into the impact of financial literacy on new venture survival. A model is proposed in which increased adoption of financial tools (e.g. financial statements and financial ratios) leads to increased frequency of financial statement generation which in turn increases the likelihood of loan repayment and decreases the probability of venture failure. A structural model was then tested using data from 509 young entrepreneurs in Canada who had received start up loans through their participation in a program by the Canadian Youth Business Foundation. This research found that increases in financial literacy led to more frequent production of financial statements. This research found that entrepreneurs who produced financial statements more frequently had a higher probability of loan repayment and a lower probability to close their venture involuntarily.
Subfields: Accounting, Economics and Econometrics, Management of Technology and Innovation
View Paper: https://www.semanticscholar.org/paper/617d3f3a8109e83a25cc485cea8b4270506b998f
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In Accounting
In Economics and Econometrics
In Management of Technology and Innovation
Citations in the corpus
- The Financial Literacy of Micro Entrepreneurs in South Africa (2014, background): “Wise (2013) finds that increases in financial literacy leads to more frequent production of financial statements.”