THE RELATIONSHIP BETWEEN DECISION-MAKING STYLE OF ENTREPRENEURS AND THEIR FINANCIAL LITERACY

Purpose: The objective of this study was to examine the relation between decision-making styles used by entrepreneurs and their respective financial literacy. Design/methodology/approach: The research was designed as a quantitative study with General Decision-Making Style Inventory (Scott & Bruce, 1995) used. The OECD INFE Core Questionnaire (2011) was mainly used for measuring financial literacy. Using the purposive sampling technique, 51 entrepreneurs were selected. Research was conducted in Bosnia and Herzegovina during the first quarter of 2017. To gain better understanding of relationship between entrepreneurs' financial literacy and their decision making styles we use descriptive statistics, correlation analysis and multiple linear regression analysis. Findings: Results indicate significant association between rational decision-making style and financial behaviour, attitude and financial goals in business. The available evidence seems to suggest that rational decision making style of entrepreneurs predicts their financial behaviour and financial attitudes. Research/practical implications: Findings suggest that entrepreneurial activities may be raised via enhancing particular skills in respect to different decision-making tools and techniques. These results may produce useful pieces of information which might be helpful in the creation of entrepreneurship education and training programs. Originality/value: To date, a considerable body of research has sought to understand the decision-making styles and financial literacy of entrepreneurs. However, the present study is a 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 in respect to different decision making tools and techniques