Effect of Financial Literacy on Entrepreneurship Development among Igbo Apprentices in Anambra State, Nigeria

Abstract

Financial literacy and entrepreneurship development are increasingly important to the transition of young people from apprenticeship into independent enterprise. However, practical apprenticeship experience may not adequately translate into entrepreneurial capability where apprentices have limited capacity to manage financial resources and make informed investment decisions. This study examined the relationship between financial literacy and entrepreneurship development among Igbo apprentices in selected commercial markets in Anambra State, Nigeria. Specifically, the study examined the relationships between financial knowledge and investment literacy and entrepreneurship development, and determined their joint contribution to entrepreneurship development. A cross-sectional survey design was adopted. From a population of 1,006 apprentices, a sample size of 286 was determined, while 274 valid questionnaires were retrieved and analysed, representing a 95.8% response rate. Data were analysed using descriptive statistics, Cronbach's alpha, Pearson correlation, and multiple regression analysis. The results showed that investment literacy had a positive and significant relationship with entrepreneurship development (r = 0.618, p < 0.01) and made a significant contribution to its prediction (β = 0.378, t = 7.104, p < 0.001). Financial knowledge also had a positive and significant relationship with entrepreneurship development (r = 0.671, p < 0.01) and was the stronger predictor (β = 0.466, t = 8.392, p < 0.001). Investment literacy and financial knowledge jointly explained 55.2% of the observed variation in entrepreneurship development (R² = 0.552), while the overall regression model was statistically significant (F = 166.85, p < 0.001). The study concludes that financial literacy constitutes an important component of entrepreneurial preparedness among Igbo apprentices, with financial knowledge demonstrating a stronger contribution. It recommends the integration of practical financial and investment education into apprenticeship training, alongside mentoring and post apprenticeship enterprise development services.