Determinants of Entrepreneurial Financial Well-Being: Does Financial Behavior mediates?

Abstract

The purpose of the study is to examine the impact of family financial socialization, social capital, and financial self-efficacy and the mediating effect of financial behavior on the entrepreneurs’ financial wellbeing in Pakistan. Using a cross-section survey, sample data is collected from 178 male respondents in Karachi, Pakistan by employing the convenience sampling method. The path analysis reveals that Family financial socialization (FFS) and social capital (SC) are important determinants of entrepreneurs’ financial behavior. However, there is no statistical evidence to support their indirect effect via FB on the financial wellbeing of same entrepreneurs’. Additionally, the findings suggest that financial self-efficacy (FSE) and financial behavior (FB) have no significant effect on financial wellbeing (FWB) of entrepreneurs. Thus, there is an opportunity for the government to develop mentorship programs connecting aspiring entrepreneurs with experienced business owners and financial experts for entrepreneur’s guidance and support.