The Effect of Financial Literacy and Entrepreneurial Motivation on Entrepreneurial Interests

Abstract

Financial literacy is an individual's ability and skill in managing personal and business finances, financial literacy is part of entrepreneurship education which is a factor of interest in entrepreneurship. In addition to financial literacy, motivation is also a factor of interest in entrepreneurship. The Faculty of Islamic Economics and Business IAIN Ponorogo is a faculty that has a focus on entrepreneurship development, where the vision and mission, courses and practical activities lead to the development of entrepreneurship. However, the interest in entrepreneurship with the knowledge that has been obtained during college has not been able to arouse interest in entrepreneurship in students. This study aims to examine and analyze the effect of financial literacy and entrepreneurial motivation on student interest in entrepreneurship. This type of research is quantitative research with correlational method, data collection using questionnaires and sampling using proportionate stratified technique with a sample of 96 respondents. Data processing techniques using SPSS 23, and data analysis using multiple linear regression test. The results showed that conventional financial literacy and entrepreneurship motivation had a significant effect on student interest in entrepreneurship, while Islamic financial literacy had no significant effect on entrepreneurial interest. And conventional financial literacy, Islamic financial literacy and entrepreneurship motivation simultaneously affect student interest in entrepreneurship.