Assessing the role of entrepreneurship education in fostering innovation and new venture creation: the moderating role of financial literacy

This study investigates how entrepreneurship education (EE) influences innovation (IN) and new venture creation (NVC), with financial literacy (FL) examined as a potential moderating factor among university students in Oman. The research responds to the pressing need for effective educational interventions to enhance entrepreneurial outcomes among youth, particularly within the context of economic diversification strategies like Oman Vision 2040. Adopting a quantitative approach, data were collected from 213 students enrolled in entrepreneurship-related programs, and structural equation modelling was used to analyse relationships among the variables. The results reveal that EE has a significant positive effect on both IN (β = 0.531, p < 0.001) and NVC (β = 0.478, p < 0.001), highlighting the importance of structured entrepreneurial learning in driving innovation and venture creation. However, FL did not significantly moderate the relationships between EE and either IN or NVC. This suggests that financial literacy, in isolation, may not substantially enhance entrepreneurial outcomes unless embedded within experiential or contextual learning. The study concludes that while entrepreneurship education is a critical driver of innovation and new ventures, its effectiveness can be enhanced by integrating practical, real-world financial applications. It recommends that policymakers and educators focus on experiential learning models and cross-disciplinary curricula to better equip students for entrepreneurial success.