The Role of Financial Literacy and Digital Capabilities in Shaping Students Entrepreneurial Intention: The Mediating Role of Entrepreneurship

Abstract

This study aims to analyze the influence of financial literacy and digital capabilities on entrepreneurial intention among university students in West Jakarta, with entrepreneurship serving as a mediating variable. The research employed a quantitative descriptive approach using purposive sampling, in which respondents were active students who had taken an entrepreneurship course. Data were collected through an online questionnaire distributed to 137 respondents. The data were processed using SEM-PLS with the SmartPLS 4 application. The findings indicate that financial literacy has a positive but insignificant effect on entrepreneurial intention, while digital capabilities also show a positive yet insignificant effect on entrepreneurial intention. Furthermore, financial literacy has a positive and significant effect on entrepreneurship, whereas digital capabilities exhibit a positive but insignificant effect on entrepreneurship. Additionally, entrepreneurship is found to have a positive and significant effect on entrepreneurial intention. The mediation analysis reveals that entrepreneurship mediates the relationship between financial literacy and entrepreneurial intention, but does not fully mediate the effect of digital capabilities on entrepreneurial intention. Thus, entrepreneurship serves as an important pathway that links financial literacy to entrepreneurial intention, while the influence of digital capabilities still requires additional factors to enhance its contribution. This study provides theoretical insights into the role of financial literacy, digital capabilities, and entrepreneurship in shaping entrepreneurial intention among students. Moreover, the study highlights the importance of strengthening entrepreneurial competencies through practical activities, training, and mentoring so that financial knowledge and digital abilities can be optimally utilized to foster students entrepreneurial intention.