Digital Literacy and Entrepreneurial Financial Decision-Making in an Emerging Economy: Evidence from Pakistan

Abstract

The rapid digitalization of financial services has significantly transformed the way individuals and businesses manage financial transactions and make economic decisions. In this evolving financial landscape, emerging entrepreneurs are increasingly relying on digital financial tools such as e-wallets to conduct business operations, manage cash flows, and make strategic financial decisions. Understanding the factors that influence how these entrepreneurs perceive and manage their finances has become essential, particularly in developing economies where digital financial adoption is growing rapidly. It explores how digital financial literacy, covering things like knowledge, awareness, experience, and skills, affects their financial attitudes, and how these attitudes, in turn, influence their financial decisions and behaviors. The research draws on established theories like Self-Efficacy Theory, the Theory of Planned Behavior (TPB), and the Technology Acceptance Model (TAM) to create a solid foundation. Using a quantitative approach, the study will gather insights through a questionnaire aimed at emerging entrepreneurial e-wallet users. Ultimately, this research seeks to shed light on how improving digital financial literacy can help emerging entrepreneurs make smarter financial choices and tackle the challenges of managing finances in an increasingly digital economy