Abstract:
This research shares a background of increased desire for entrepreneurship in the digital
age, where both financial literacy and digital literacy are seen as necessary antecedents
of entrepreneurial intention. The purpose of this study is to investigate the effect of
financial literacy and digital literacy on entrepreneurial intention, with entrepreneurial
self-efficacy mediating both relationships. A quantitative study using Structural Equation
Modeling–Partial Least Squares (SEM-PLS) was conducted on a sample of 300
individual entrepreneurs in Jakarta as the unit of analysis. The dimensions studied in the
present study included financial literacy, digital literacy, entrepreneurial self-efficacy,
and entrepreneurial intention. The research findings found financial literacy to be a
statistically significant antecedent to entrepreneurial intention (β=0.203; t=3.264;
p=0.001) and entrepreneurial self-efficacy (β=0.311; t=5.797; p=0.000); digital literacy
was found to be a statistically significant antecedent to entrepreneurial intention
(β=0.227; t=4.159; p=0.000) and entrepreneurial self-efficacy (β=0.439; t=8.571;
p=0.000); entrepreneurial self-efficacy was a statistically significant antecedent to
entrepreneurial intention (β=0.201; t=2.858; p=0.004) and was a significant mediator
variable between financial literacy (β=0.063; t=2.470; p=0.014) and digital literacy
(β=0.088; t=2.660; p=0.008) with entrepreneurial intention. The research suggests that
promoting financial literacy and digital literacy will improve the entrepreneurial self-
efficacy, which can foster entrepreneurial intention.
