Financial knowledge as an enabler of entrepreneurial intentions

Low rates of entrepreneurial entry can constrain innovation, productivity and job creation, particularly in economies characterised by limited financial capability and high perceived start-up risk. This study examines whether financial knowledge stimulates entrepreneurial intentions (EI) and clarifies whether its influence is direct or operates through belief-based mechanisms within the Theory of Planned Behaviour (TPB). Using nationally representative data from the 2023 Global Entrepreneurship Monitor (GEM) survey for Romania (N = 1,051 non-entrepreneurs), we estimate a covariance-based structural equation model (CB-SEM) with a WLSMV estimator to test mediation pathways via opportunity recognition, fear of failure, subjective norms, and entrepreneurial self-efficacy. The results show no significant direct effect of financial knowledge on EI. Instead, financial knowledge influences EI indirectly by reducing fear of failure and strengthening entrepreneurial self-efficacy and subjective norms, while the opportunity recognition pathway is not supported. These findings extend TPB-based entrepreneurial intention research by conceptualising financial knowledge as an enabling cognitive resource that shapes intention formation through belief-based mechanisms. Practically, the results suggest that financial education alone is unlikely to increase entrepreneurial entry unless combined with confidence-building and network-oriented support. By separating direct from indirect effects, the study helps reconcile mixed evidence on the financial knowledge–entrepreneurial intention link.