The Relationship between Decision-Making Style of Entrepreneurs and Their Financial Literacy

The objective of this study was to examine the relation between decision-makingstyles used by entrepreneurs and their respective financial literacy. Design/methodology/approach: The research was designed as a quantitative study withGeneral Decision-Making Style Inventory (Scott & Bruce, 1995) used. The OECD INFE CoreQuestionnaire (2011) was mainly used for measuring financial literacy. Using the purposivesampling technique, 51 entrepreneurs were selected. Research was conducted in Bosnia andHerzegovina during the first quarter of 2017. To gain better understanding of relationshipbetween entrepreneurs' financial literacy and their decision making styles we use descriptivestatistics, correlation analysis and multiple linear regression analysis. Findings: Results indicate significant association between rational decision-making style andfinancial behaviour, attitude and financial goals in business. The available evidence seems tosuggest that rational decision making style of entrepreneurs predicts their financial behaviourand financial attitudes. Research/practical implications: Findings suggest that entrepreneurial activities may beraised via enhancing particular skills in respect to different decision-making tools andtechniques. These results may produce useful pieces of information which might be helpful inthe creation of entrepreneurship education and training programs. Originality/value: To date, a considerable body of research has sought to understand thedecision-making styles and financial literacy of entrepreneurs. However, the present study isa pioneer attempt dealing with an in-depth analysis of relationship between those two concepts.Findings suggest that entrepreneurial activities may be raised via enhancing particular skills inrespect to different decision making tools and techniques