The Mediating Effect of Innovativeness on the Relationship between Financial Literacy and Risk-Taking Propensity: Implications for Graduates’ Readiness for Entrepreneurship

Objective: This article examined the mediating role of innovativeness between financial literacy and risk-taking tendency and its implications for graduates’ preparedness for self-employment. Methodology: This research employed a cross-sectional design with 157 students at a Philippine state university. Key findings: Filipino students who were surveyed had moderate financial literacy and entrepreneurial characteristics. Financial literacy, risk-taking willingness, and innovativeness also have a significant relationship. In addition, innovativeness mediates financial literacy and risk-taking willingness. Conclusion: Financial literacy and innovativeness influence entrepreneurial readiness. Graduates with these characteristics are more likely to be well-equipped to navigate the challenges and seize the opportunities of entrepreneurship. In response, educational institutions create specific interventions and educational programs to help aspiring students become entrepreneurs and self-employed individuals, help them manage and succeed in various aspects of their future entrepreneurial ventures.