The Influence of Economic Literacy and Entrepreneurship Education on Business Sustainability with Entrepreneurial Commitment as a Mediating Variable
Keywords:
Economic Literacy, Entrepreneurship Education, Entrepreneurial Commitment, Business Sustainability
Abstract
This study aims to analyze the influence of economic literacy and entrepreneurship education on the sustainability of street vendor businesses in Pinrang Regency, with entrepreneurial commitment as a mediating variable. A quantitative approach was used with data from 100 respondents analyzed using Structural Equation Modeling Partial Least Squares (SEM-PLS). The results show that economic literacy and entrepreneurship education have a positive and significant influence on business sustainability, with entrepreneurial commitment strengthening the relationship. Economic literacy helps entrepreneurs in financial management, while entrepreneurship education improves skills and adaptation to business challenges. This study emphasizes the importance of economic literacy and entrepreneurship education programs oriented towards increasing entrepreneurial commitment to support the sustainability of street vendor businesses in the future.
References
Akinyede, O. M. (2023). Financial Literacy and Entrepreneurship Performance. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4483051
Ali, H., Omar, E. N., Nasir, H. A., & Osman, M. R. (2018). Financial Literacy of Entrepreneurs in the Small and Medium Enterprises. In Proceedings of the 2nd Advances in Business Research International Conference (pp. 31–38). Singapore: Springer Singapore. https://doi.org/10.1007/978-981-10-6053-3_4
Almahry, F. F., Sarea, A., Hamdan, A. M., & Al Mubarak, M. M. S. (2020). The Impact of Entrepreneurship Education on Entrepreneurs’ Skills (pp. 183–197). https://doi.org/10.4018/978-1-5225-9377-5.ch009
Amatucci, F. M. (2019). Embedding Sustainability in the Entrepreneurship Curriculum. In Incorporating Sustainability in Management Education (pp. 9–31). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-319-98125-3_2
Ayhan, B. (2019). Constituting financialized subjectivities: cultural political economy of financial literacy in Turkey. Turkish Studies, 20(5), 680–707. https://doi.org/10.1080/14683849.2018.1520103
Baltador, L. A., & Grecu, V. (2023). Developing Sustainable Entrepreneurs Through Social Entrepreneurship Education. Studies in Business and Economics, 18(2), 37–47. https://doi.org/10.2478/sbe-2023-0023
Burchi, A., Włodarczyk, B., Szturo, M., & Martelli, D. (2021). The Effects of Financial Literacy on Sustainable Entrepreneurship. Sustainability, 13(9), 5070. https://doi.org/10.3390/su13095070
Cakir, S., Adiguzel, F., & Zafer. (2020). Analysis of Leader Effectiveness in Organization and Knowledge Sharing Behavior on Employees and Organization. SAGE Open, 10(1), 215824402091463. https://doi.org/10.1177/2158244020914634
Carpenter, A., & Wilson, R. (2022). A systematic review looking at the effect of entrepreneurship education on higher education student. The International Journal of Management Education, 20(2), 100541. https://doi.org/10.1016/j.ijme.2021.100541
Coppens, K., & Knockaert, M. (2022). Committed to the venture or the family? A study of entrepreneurial persistence in distressed ventures. Small Business Economics, 58(1), 263–280. https://doi.org/10.1007/s11187-021-00486-5
Costin, Y., O’Brien, M. P., & Hynes, B. (2022). Entrepreneurial education: Maker or breaker in developing students’ entrepreneurial confidence, aptitude and self-efficacy? Industry and Higher Education, 36(3), 267–278. https://doi.org/10.1177/09504222211040662
Cui, J., Sun, J., & Bell, R. (2021). The impact of entrepreneurship education on the entrepreneurial mindset of college students in China: The mediating role of inspiration and the role of educational attributes. The International Journal of Management Education, 19(1), 100296. https://doi.org/10.1016/j.ijme.2019.04.001
DİLEK, S., KESGİNGÖZ, H., KONAK, A., & HALICIOĞLU, S. (2018). Factors Affecting Economic Literacy. Afro Eurasian Studies, 7(1), 7–47. https://doi.org/10.33722/afes.475575
Escoto, B., Estela, B., Boza, P., Malena, Madrigal, F., & Duniesky. (2019). Sustainable Tourism: A Competitiveness Strategy Perspective in Baja California. Sustainability, 11(24), 6934. https://doi.org/10.3390/su11246934
Gans, J. S., Stern, S., & Wu, J. (2016). Foundations of Entrepreneurial Strategy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2844843
Grennan, J. (2019). Communicating Culture Consistently: Evidence from Banks. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3350645
Hagebakken, G., Reimers, C., & Solstad, E. (2021). Entrepreneurship Education as a Strategy to Build Regional Sustainability. Sustainability, 13(5), 2529. https://doi.org/10.3390/su13052529
Hameed, I., Zaman, U., Waris, I., & Shafique, O. (2021). A Serial-Mediation Model to Link Entrepreneurship Education and Green Entrepreneurial Behavior: Application of Resource-Based View and Flow Theory. International Journal of Environmental Research and Public Health, 18(2), 550. https://doi.org/10.3390/ijerph18020550
HAMMER, T., & SIEGFRIED, P. (2023). Implications of Financial Literacy on Entrepreneurship. Audit Financiar, 21(169), 194–208. https://doi.org/10.20869/AUDITF/2023/169/007
HERMAN, M. (2022). MANAGEMENT OF THE FINANCIAL RESOURCES OF THE ENTERPRISE AND ITS IMPACT ON ITS FINANCIAL CONDITION. Herald of Khmelnytskyi National University. Economic Sciences, 310(5(1)), 175–181. https://doi.org/10.31891/2307-5740-2022-310-5(1)-29
Hermann, R. R., & Bossle, M. B. (2020). Bringing an entrepreneurial focus to sustainability education: A teaching framework based on content analysis. Journal of Cleaner Production, 246, 119038. https://doi.org/10.1016/j.jclepro.2019.119038
Huang, Y., Liu, L., & An, L. (2020). Are the Teachers and Students Satisfied: Sustainable Development Mode of Entrepreneurship Education in Chinese Universities? Frontiers in Psychology, 11. https://doi.org/10.3389/fpsyg.2020.01738
Hussain, J., Salia, S., & Karim, A. (2018). Is knowledge that powerful? Financial literacy and access to finance. Journal of Small Business and Enterprise Development, 25(6), 985–1003. https://doi.org/10.1108/JSBED-01-2018-0021
Kadoya, Y., & Khan, M. S. R. (2020). What determines financial literacy in Japan? Journal of Pension Economics and Finance, 19(3), 353–371. https://doi.org/10.1017/S1474747218000379
KHAYTANOVA, M. M. (2020). FINANCIAL RISK MANAGEMENT IN ENTREPRENEURIAL ACTIVITY: CONCEPT, SYSTEM AND PRINCIPLE OF BUILDING. EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA, 2(4), 62–67. https://doi.org/10.36871/ek.up.p.r.2020.04.02.010
Kim, S., Choe, I., & Kaufman, J. C. (2019). The development and evaluation of the effect of creative problem-solving program on young children’s creativity and character. Thinking Skills and Creativity, 33(3), 100–590. https://doi.org/10.1016/j.tsc.2019.100590
Li, R., & Qian, Y. (2019). Entrepreneurial participation and performance: the role of financial literacy. Management Decision, 58(3), 583–599. https://doi.org/10.1108/MD-11-2018-1283
Mgunda, M. I. (2019). The Contribution of Educational Aspects in Entrepreneurship Development. International Journal of Advances in Management and Economics, 9(1), 08–16. https://doi.org/10.31270/IJAME/v09/i01/2020/2
Mikić, M., Sopta, M., & Horvatinović, T. (2019). THE ROLE OF ENTREPRENEURIAL EDUCATION IN THE DEVELOPMENT OF ENTREPRENEURSHIP. EMC Review - Časopis Za Ekonomiju - APEIRON, 16(2). https://doi.org/10.7251/EMC1802385M
Mošková, E., & Buganová, K. (2023). Improving Business Sustainability by Connecting Business Continuity Management and Risk Management. WSB Journal of Business and Finance, 57(1), 38–45. https://doi.org/10.2478/wsbjbf-2023-0005
Nabi, G., Liñán, F., Fayolle, A., Krueger, N., & Walmsley, A. (2017). The Impact of Entrepreneurship Education in Higher Education: A Systematic Review and Research Agenda. Academy of Management Learning & Education, 16(2), 277–299. https://doi.org/10.5465/amle.2015.0026
NANDEESWARAIAH, K., & RAMANA, A. V. (2019). ROLE AND PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES. JOURNAL OF MANAGEMENT, 6(5). https://doi.org/10.34218/JOM.6.5.2019.002
Nunden, N., Abbana, S., Marimuthu, F., & Sentoo, N. (2022). An assessment of management skills on capital budgeting planning and practices: evidence from the small and medium enterprise sector. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2136481
Prause, M. (2019). Challenges of Industry 4.0 Technology Adoption for SMEs: The Case of Japan. Sustainability, 11(20), 5807. https://doi.org/10.3390/su11205807
Rani, V. (2018). Problems Faced by Micro, Small and Medium Enterprises - A Special Reference to Small Entrepreneurs in Erode District. HuSS: International Journal of Research in Humanities and Social Sciences, 5(1), 30. https://doi.org/10.15613/hijrh/2018/v5i1/177849
Rashid, L. (2019). Entrepreneurship Education and Sustainable Development Goals: A literature Review and a Closer Look at Fragile States and Technology-Enabled Approaches. Sustainability, 11(19), 5343. https://doi.org/10.3390/su11195343
Rauch, A., & Hulsink, W. (2015). Putting Entrepreneurship Education Where the Intention to Act Lies: An Investigation Into the Impact of Entrepreneurship Education on Entrepreneurial Behavior. Academy of Management Learning & Education, 14(2), 187–204. https://doi.org/10.5465/amle.2012.0293
Sainidis, E., Robson, A., & Heron, G. (2019). Environmental turbulence and the role of business functions in the manufacturing strategy debate: The case of UK-based SMEs and the Great Recession. Journal of General Management, 44(4), 190–208. https://doi.org/10.1177/0306307019832498
Seraj, A. H. A., Fazal, S. A., & Alshebami, A. S. (2022). Entrepreneurial Competency, Financial Literacy, and Sustainable Performance—Examining the Mediating Role of Entrepreneurial Resilience among Saudi Entrepreneurs. Sustainability, 14(17), 10689. https://doi.org/10.3390/su141710689
Tasnim, R., & Singh, H. (2016). “What, Exactly, is Entrepreneurial Commitment?”: Modeling the Commitment of Successful Entrepreneurs. The Journal of Applied Management and Entrepreneurship, 21(3), 6–35. https://doi.org/10.9774/GLEAF.3709.2016.ju.00003
Verma, T. L. (2019). Role of Micro, Small and Medium Enterprises in Achieving SDGs. International Journal for Research in Engineering Application & Management (IJREAM), 4(12), 575–582.
Yakob, S., Yakob, R., B.A.M., H.-S., & Rusli, R. Z. A. (2021). Financial Literacy and Financial Performance of Small and Medium-sized Enterprises. The South East Asian Journal of Management, 15(1), 72–96. https://doi.org/10.21002/seam.v15i1.13117
Ye, J., & Kulathunga, K. (2019). How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective. Sustainability, 11(10), 2990. https://doi.org/10.3390/su11102990
Zhou, R., Xiong, X., Llacay, B., & Peffer, G. (2023). Market Impact Analysis of Financial Literacy among A-Share Market Investors: An Agent-Based Model. Entropy, 25(12), 1602. https://doi.org/10.3390/e25121602
Ali, H., Omar, E. N., Nasir, H. A., & Osman, M. R. (2018). Financial Literacy of Entrepreneurs in the Small and Medium Enterprises. In Proceedings of the 2nd Advances in Business Research International Conference (pp. 31–38). Singapore: Springer Singapore. https://doi.org/10.1007/978-981-10-6053-3_4
Almahry, F. F., Sarea, A., Hamdan, A. M., & Al Mubarak, M. M. S. (2020). The Impact of Entrepreneurship Education on Entrepreneurs’ Skills (pp. 183–197). https://doi.org/10.4018/978-1-5225-9377-5.ch009
Amatucci, F. M. (2019). Embedding Sustainability in the Entrepreneurship Curriculum. In Incorporating Sustainability in Management Education (pp. 9–31). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-319-98125-3_2
Ayhan, B. (2019). Constituting financialized subjectivities: cultural political economy of financial literacy in Turkey. Turkish Studies, 20(5), 680–707. https://doi.org/10.1080/14683849.2018.1520103
Baltador, L. A., & Grecu, V. (2023). Developing Sustainable Entrepreneurs Through Social Entrepreneurship Education. Studies in Business and Economics, 18(2), 37–47. https://doi.org/10.2478/sbe-2023-0023
Burchi, A., Włodarczyk, B., Szturo, M., & Martelli, D. (2021). The Effects of Financial Literacy on Sustainable Entrepreneurship. Sustainability, 13(9), 5070. https://doi.org/10.3390/su13095070
Cakir, S., Adiguzel, F., & Zafer. (2020). Analysis of Leader Effectiveness in Organization and Knowledge Sharing Behavior on Employees and Organization. SAGE Open, 10(1), 215824402091463. https://doi.org/10.1177/2158244020914634
Carpenter, A., & Wilson, R. (2022). A systematic review looking at the effect of entrepreneurship education on higher education student. The International Journal of Management Education, 20(2), 100541. https://doi.org/10.1016/j.ijme.2021.100541
Coppens, K., & Knockaert, M. (2022). Committed to the venture or the family? A study of entrepreneurial persistence in distressed ventures. Small Business Economics, 58(1), 263–280. https://doi.org/10.1007/s11187-021-00486-5
Costin, Y., O’Brien, M. P., & Hynes, B. (2022). Entrepreneurial education: Maker or breaker in developing students’ entrepreneurial confidence, aptitude and self-efficacy? Industry and Higher Education, 36(3), 267–278. https://doi.org/10.1177/09504222211040662
Cui, J., Sun, J., & Bell, R. (2021). The impact of entrepreneurship education on the entrepreneurial mindset of college students in China: The mediating role of inspiration and the role of educational attributes. The International Journal of Management Education, 19(1), 100296. https://doi.org/10.1016/j.ijme.2019.04.001
DİLEK, S., KESGİNGÖZ, H., KONAK, A., & HALICIOĞLU, S. (2018). Factors Affecting Economic Literacy. Afro Eurasian Studies, 7(1), 7–47. https://doi.org/10.33722/afes.475575
Escoto, B., Estela, B., Boza, P., Malena, Madrigal, F., & Duniesky. (2019). Sustainable Tourism: A Competitiveness Strategy Perspective in Baja California. Sustainability, 11(24), 6934. https://doi.org/10.3390/su11246934
Gans, J. S., Stern, S., & Wu, J. (2016). Foundations of Entrepreneurial Strategy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2844843
Grennan, J. (2019). Communicating Culture Consistently: Evidence from Banks. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3350645
Hagebakken, G., Reimers, C., & Solstad, E. (2021). Entrepreneurship Education as a Strategy to Build Regional Sustainability. Sustainability, 13(5), 2529. https://doi.org/10.3390/su13052529
Hameed, I., Zaman, U., Waris, I., & Shafique, O. (2021). A Serial-Mediation Model to Link Entrepreneurship Education and Green Entrepreneurial Behavior: Application of Resource-Based View and Flow Theory. International Journal of Environmental Research and Public Health, 18(2), 550. https://doi.org/10.3390/ijerph18020550
HAMMER, T., & SIEGFRIED, P. (2023). Implications of Financial Literacy on Entrepreneurship. Audit Financiar, 21(169), 194–208. https://doi.org/10.20869/AUDITF/2023/169/007
HERMAN, M. (2022). MANAGEMENT OF THE FINANCIAL RESOURCES OF THE ENTERPRISE AND ITS IMPACT ON ITS FINANCIAL CONDITION. Herald of Khmelnytskyi National University. Economic Sciences, 310(5(1)), 175–181. https://doi.org/10.31891/2307-5740-2022-310-5(1)-29
Hermann, R. R., & Bossle, M. B. (2020). Bringing an entrepreneurial focus to sustainability education: A teaching framework based on content analysis. Journal of Cleaner Production, 246, 119038. https://doi.org/10.1016/j.jclepro.2019.119038
Huang, Y., Liu, L., & An, L. (2020). Are the Teachers and Students Satisfied: Sustainable Development Mode of Entrepreneurship Education in Chinese Universities? Frontiers in Psychology, 11. https://doi.org/10.3389/fpsyg.2020.01738
Hussain, J., Salia, S., & Karim, A. (2018). Is knowledge that powerful? Financial literacy and access to finance. Journal of Small Business and Enterprise Development, 25(6), 985–1003. https://doi.org/10.1108/JSBED-01-2018-0021
Kadoya, Y., & Khan, M. S. R. (2020). What determines financial literacy in Japan? Journal of Pension Economics and Finance, 19(3), 353–371. https://doi.org/10.1017/S1474747218000379
KHAYTANOVA, M. M. (2020). FINANCIAL RISK MANAGEMENT IN ENTREPRENEURIAL ACTIVITY: CONCEPT, SYSTEM AND PRINCIPLE OF BUILDING. EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA, 2(4), 62–67. https://doi.org/10.36871/ek.up.p.r.2020.04.02.010
Kim, S., Choe, I., & Kaufman, J. C. (2019). The development and evaluation of the effect of creative problem-solving program on young children’s creativity and character. Thinking Skills and Creativity, 33(3), 100–590. https://doi.org/10.1016/j.tsc.2019.100590
Li, R., & Qian, Y. (2019). Entrepreneurial participation and performance: the role of financial literacy. Management Decision, 58(3), 583–599. https://doi.org/10.1108/MD-11-2018-1283
Mgunda, M. I. (2019). The Contribution of Educational Aspects in Entrepreneurship Development. International Journal of Advances in Management and Economics, 9(1), 08–16. https://doi.org/10.31270/IJAME/v09/i01/2020/2
Mikić, M., Sopta, M., & Horvatinović, T. (2019). THE ROLE OF ENTREPRENEURIAL EDUCATION IN THE DEVELOPMENT OF ENTREPRENEURSHIP. EMC Review - Časopis Za Ekonomiju - APEIRON, 16(2). https://doi.org/10.7251/EMC1802385M
Mošková, E., & Buganová, K. (2023). Improving Business Sustainability by Connecting Business Continuity Management and Risk Management. WSB Journal of Business and Finance, 57(1), 38–45. https://doi.org/10.2478/wsbjbf-2023-0005
Nabi, G., Liñán, F., Fayolle, A., Krueger, N., & Walmsley, A. (2017). The Impact of Entrepreneurship Education in Higher Education: A Systematic Review and Research Agenda. Academy of Management Learning & Education, 16(2), 277–299. https://doi.org/10.5465/amle.2015.0026
NANDEESWARAIAH, K., & RAMANA, A. V. (2019). ROLE AND PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES. JOURNAL OF MANAGEMENT, 6(5). https://doi.org/10.34218/JOM.6.5.2019.002
Nunden, N., Abbana, S., Marimuthu, F., & Sentoo, N. (2022). An assessment of management skills on capital budgeting planning and practices: evidence from the small and medium enterprise sector. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2136481
Prause, M. (2019). Challenges of Industry 4.0 Technology Adoption for SMEs: The Case of Japan. Sustainability, 11(20), 5807. https://doi.org/10.3390/su11205807
Rani, V. (2018). Problems Faced by Micro, Small and Medium Enterprises - A Special Reference to Small Entrepreneurs in Erode District. HuSS: International Journal of Research in Humanities and Social Sciences, 5(1), 30. https://doi.org/10.15613/hijrh/2018/v5i1/177849
Rashid, L. (2019). Entrepreneurship Education and Sustainable Development Goals: A literature Review and a Closer Look at Fragile States and Technology-Enabled Approaches. Sustainability, 11(19), 5343. https://doi.org/10.3390/su11195343
Rauch, A., & Hulsink, W. (2015). Putting Entrepreneurship Education Where the Intention to Act Lies: An Investigation Into the Impact of Entrepreneurship Education on Entrepreneurial Behavior. Academy of Management Learning & Education, 14(2), 187–204. https://doi.org/10.5465/amle.2012.0293
Sainidis, E., Robson, A., & Heron, G. (2019). Environmental turbulence and the role of business functions in the manufacturing strategy debate: The case of UK-based SMEs and the Great Recession. Journal of General Management, 44(4), 190–208. https://doi.org/10.1177/0306307019832498
Seraj, A. H. A., Fazal, S. A., & Alshebami, A. S. (2022). Entrepreneurial Competency, Financial Literacy, and Sustainable Performance—Examining the Mediating Role of Entrepreneurial Resilience among Saudi Entrepreneurs. Sustainability, 14(17), 10689. https://doi.org/10.3390/su141710689
Tasnim, R., & Singh, H. (2016). “What, Exactly, is Entrepreneurial Commitment?”: Modeling the Commitment of Successful Entrepreneurs. The Journal of Applied Management and Entrepreneurship, 21(3), 6–35. https://doi.org/10.9774/GLEAF.3709.2016.ju.00003
Verma, T. L. (2019). Role of Micro, Small and Medium Enterprises in Achieving SDGs. International Journal for Research in Engineering Application & Management (IJREAM), 4(12), 575–582.
Yakob, S., Yakob, R., B.A.M., H.-S., & Rusli, R. Z. A. (2021). Financial Literacy and Financial Performance of Small and Medium-sized Enterprises. The South East Asian Journal of Management, 15(1), 72–96. https://doi.org/10.21002/seam.v15i1.13117
Ye, J., & Kulathunga, K. (2019). How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective. Sustainability, 11(10), 2990. https://doi.org/10.3390/su11102990
Zhou, R., Xiong, X., Llacay, B., & Peffer, G. (2023). Market Impact Analysis of Financial Literacy among A-Share Market Investors: An Agent-Based Model. Entropy, 25(12), 1602. https://doi.org/10.3390/e25121602
Published
2026-03-15
How to Cite
Mustari, M., & Arisah, N. (2026). The Influence of Economic Literacy and Entrepreneurship Education on Business Sustainability with Entrepreneurial Commitment as a Mediating Variable. International Journal of Technology and Education Research, 4(01), 570-584. https://doi.org/10.63922/ijeter.v4i01.4071
.png)
Contact Person +6282139474255
Email : ijeterjournal@gmail.com
