Financial Literacy and Its Impact on Entrepreneurship Development in Eastern Uttar Pradesh: An Empirical Study

Financial Literacy is an important facilitator of economic development and entrepreneurial success. Entrepreneurship development is the process of creation of enterprises with the help of risk-taking, innovation and mobilisation of the resources and is very important for regional economic growth. This study examines the impact of financial literacy on entrepreneurship development among the beneficiaries of Mudra Yojana in Eastern Uttar Pradesh. Primary data were collected from 463 beneficiaries of Mudra Yojana with the help of a structured questionnaire, measuring financial literacy components (financial knowledge, skill, attitude, behaviour) and entrepreneurship development components (creativity and innovation, new enterprise establishment, risk-taking, dynamic surplus, productivity, employment, income generation). Exploratory factor analysis was used to validate the constructs, while regression analysis revealed that financial literacy has a significant influence on entrepreneurship development. Financial knowledge and behaviour emerged as the strongest predictors, while financial attitude was the weakest component.