Developing financial literacy as a key entrepreneurship skill through an alternative learning programme

Abstract

This study’s main focus is to assess the development of financial literacy as a key entrepreneurship skill through an Alternative Learning Programme (ALP) in Money Management. The extant literature indicates that many people of all ages worldwide lack adequate financial literacy skills, and suggests that the financial crisis is a result of poor financial management and decisions (Atkinson & Messy, Carroll, 2012; 2012; Lusardi and Mitchell, 2014; OECD, 2008). For this reason, calls have been made for including financial literacy in the compulsory education curriculum. Furthermore, financial literacy has been recognized as a key entrepreneurship skill. Entrepreneurship is perceived as a very important instrument for job creation and wealth contributor and is therefore an essential driver to economic growth and social development locally and globally. A common reference framework known as EntreComp which is proposed by the European Commission to understand the competences involved in entrepreneurship establishes 15 different competences, one of which is financial literacy (Bacigalupo et al., 2016). This competence is deemed essential to provide individuals with the necessary skills to understand the financial viability of turning their ideas into action and value for others. It is therefore argued that the more financially literate an entrepreneur is, the more successful entrepreneurship becomes as the entrepreneur is more capable to make sound financial decisions for the business. This dissertation evaluates an Alternative Learning Programme in Money Management which has recently been introduced at a vocational education centre in Malta which caters for Form 5 students (15-16 year-olds) from disadvantaged or troubled backgrounds. This study explores the skills attained by the students, the pedagogy adapted, and the relevance and influence of the programme towards students’ decisions on their future employment and entrepreneurship aspirations. A survey was distributed to students following their participation in the ALP, and focus groups were held with teachers and expert mentors who were involved in organising or facilitating the ALP activities. Findings of the study indicate that financial literacy is indeed a key entrepreneurship skill. Both students and teachers had a very positive attitude and feedback towards the Alternative Learning Programme in Money Management. A good number of financial literacy and entrepreneurship skills were attained by the students during the project. Evaluation of the project shows that it is recommended that the skills which were lacking throughout the programme should be included in further projects. Last but not least, findings revealed that the ALP in Money Management has been a good instrument to help students think about seeking employment and opening their own business in the future.